Budgeted income statement

The operating results in summarized form for a retail computer store for this year are:

The computer store is in the process of formulating its operating budget for next year and has made the following assumptions:

The selling prices of hardware are expected to increase $10$ percent but there will be no selling price increases for software and maintenance contracts.

The cost of hardware and software is expected to increase $4$ percent.

Marketing expenses will be increased $5$ percent in the coming year.

Three technicians will be added to the customer maintenance operations in the coming year, increasing the customer maintenance costs by $$120,000.$

Administrative costs will be held at the same level.

Compute the computer retail store's budgeted operating income for next year. $