Cycle Fa Company is a manutacturer of commercial grade exercise bies that are sold to hotels and health clibs. Maintaining the bikes is an important area of customer satsfaction. Because of increase industry compehion, Cycle Fir's financial performance has suffered. However, the introduction of a new model and a predictod uptum in the economy are Ieading Cycie Firs managers to prodict improved performance in 2021 . The following income statement shows rosults for 2020. (Cick the icon to view the income statement) Cycle Fits management team is preparing the 2021 budget and is studying the following infomation: (Click the ioon to view the inlormation) Read the reauirements Requirement 1. Prepare a budgeted income statement for the year ending December 31, 2021, (Round your answers to the nearest whole thoisand) Data table Cycle Fit Company Income Statement for the Year Ended December 31, 2020 (in thousands) More info 1. Selling prices of bikes are expected to increase by 15% due to the introduction of the new model. The selling price of each maintenance contract is expected to remain unchanged from 2020. 2. Bike sales in units are expected to increase by 6%, with a corresponding 6% growth in units of maintenance contracts. 3. Cost of each unit sold is expected to increase by 5% to pay for the necessary technology and quality improvement for the new model. 4. Marketing costs are expected to increase by $210,000. 5. Distribution costs vary in proportion to the number of bikes sold. 6. One additional maintenance technician is to be hired at a total cost of $190,000, which covers wages and related travel costs. The objective is to improve customer service and shorten response time. 7. There are no anticipated changes to adminstration costs. 8. There is no beginning or ending inventory of equipment. Requirements 1. Prepare a budgeted income statement for the year ending December 31 , 2021. 2. How well does the budget align with Cycle Fit's strategy? 3. How does preparing the budget help Cycle Fit's management team better manage the company