Ellison Corporation reports the year-end information from 2018 as follows:

Sales (100,000 units) $500,000

Less: Cost of goods sold 300,000

Gross profit 200,000

Operating expenses (includes $20,000 of Depreciation) 120,000

Net income $ 80,000

Ellison is developing the 2019 budget. In 2019 the company would like to increase selling prices by 10%, and as a result expects a decrease in sales volume of 5%. Cost of goods sold as a percentage of sales is expected to increase to 62%. Other than depreciation, all operating costs are variable.

Required:

Prepare a budgeted income statement for 2019.