Cycle 1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is available for October $296,700 Sales revenue (438 units @ $698 per unit) Less Manufacturing costs Variable costs Depreciation (fixed) Marketing and administrative costs Fixed costs (cash) Depreciation (fixed) Total costs Operating profits 26, eee 26,680 67,400 22,300 $142,300 $154,400 Sales volume is expected to increase by 20 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to increase by 2 percent per unit in November. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 5 percent Cycle-1 operates on a cash basis and maintains no inventories. Depreciation is fixed and should remain unchanged over the next three years Required: Prepare a budgeted Income statement for November. (Do not round intermediate calculations.) Sales volume is expected to increase by 20 percent in November, but the sales price is expected to fall 10 percent. Variable manufacturing costs are expected to increase by 2 percent per unit in November. In addition to these cost changes, variable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 5 percent Cycle-1 operates on a cash basis and maintains no inventories. Depreciation is fixed and should remain unchanged over the next three years Required: Prepare a budgeted Income statement for November. (Do not round intermediate calculations.) CYCLE 1 Budgeted Income Statement For the month of November Sales revenue LOSS Manufacturing costs: Variable costs Depreciation (fixed) Total manufacturing costs $ 0 0 $ Less Marketing and Administrative Fixed costs (cash) Depreciation (foxed) Total marketing and administrative costs Operating profit $ $ 0 0