F8-37. Budgeted income statement Last year's income statement for Cooper Company is as follows: The company can, if necessary $1.000.000 $400.000 200,000 100,000 Sales (100,000 x $10) Cost of goods sold Direct material.. Direct labor Overhead Gross profit Expenses Selling Administrative (700,000) $ 300.000 $104,000 120.000 (224,000) $ 76,000 Income before taxes. This year, unit sales are expected to increase by 25 percent; material and labor costs are expected to increase by 10 percent per unit. Overhead is applied to production based on a per centage of direct labor costs. Fixed selling expenses total $24,000; the remainder varies with sales dollars. All administrative costs are fixed. Management desires to earn 10 percent on sales this year and will adjust the unit selling price if necessary. Develop a budgeted income statement for the year for Cooper Company that incorpo- rates the indicated changes