Deleon Inc. is preparing its annual budgets for the year ending December 31, 2017. Accounting assistants furnish the data shown below. Product JB 50 Product JB 60 403.900 $23 201,200 $28 26,400 32.900 16,700 12,600 Sales budget: Anticipated volume in units Unit selling price Production budget: Desired ending finished goods units Beginning finished goods units Direct materials budget: Direct materials per unit (pounds) Desired ending direct materials pounds Beginning direct materials pounds Cost per pound Direct labor budget Direct labor time per unit Direct labor rate per hour Budgeted income statement: Total unit cost 2 33.900 42.700 $2 2 18,900 11.000 $3 0.4 $11 0.6 $11 $14 $21 An accounting assistant has prepared the detailed manufacturing overhead budget and the selling and administrative expense budget. The latter shows selling expenses of $665.000 for product JB 50 and $363.000 for product JB 60, and administrative expenses of $544.000 for product JB 50 and $341,000 for product JB 60. Interest expense is $150,000 (not allocated to products). Income taxes are expected to be 30%. DELEON INC Budgeted Income Statement For the Year Ending December 31, 2017 JB 50 JB 60 Total Sales $ $ 8488200 5647600 Cost of Goods Sold 4850400 4437400 Gross Profit 3637800 1210200 Operating Expenses Selling Expenses 663000 364000 Administrative Expenses 541000 342000 Total Operating Expenses 1204000 706000 Income from Operations 2433800 504200 Interest Expense Income before income Taxes Income Tax Expense Net Income (LOSS $