Flex Electronics manufactures and sells two types of custom USB flash drives with organization logo: USB drive #1 and USB drive #2. The company forecasts the following data for year 2017: Flex has determined the following activity cost pools and cost driver levels for 2017: Assume income tax rate is 30%. Required (1): prepare a budgeted income statement for year 2017 based on the above information. Flex Electronics also considers three alternative plans to improve its companywide profit: Plan A: Terminate production of USB drive #2. Given the current plant conditions. Flex can use the excess capacity to produce and sell additional 40,000 units of USB drive #1. This proposed plan does not change activity cost. Termination of USB drive #2 will impose order cancellation penalty of $38,000. Plan B: Lower the selling price of USB drive #1 to $13.5, which will increase the sales volume of USB drive #1 by 20,000 units. Assume Plan B does not affect the production and sale of USB drive #2. Further, activity cost pools and cost driver levels are presented below under this proposed plan: Plan C: Shifting the focus of advertising from USB drive #2 to USB drive #1, which will increase advertising costs by $5000. Further, plan C will increase the sales volume of USB drive #1 by 10,000 units, and decrease the sales volume of USB drive #2 by 10,000 units. Assume this proposed plan does not change activity cost pools and cost driver levels. Required (2): prepare a budgeted income statement for each of the above three alternative plans and identify the plan that has the most beneficial effect on Flex's companywide profit