GoTray Inc., produces plastic tray used in cafeterias. The company's static budget income statement for January follows. It is based on expected sales volume of 5,500 trays. GoTray Inc. Static Budget Income Statement Month Ended January 31 Sales revenue $16,500 Variable expenses: Cost of goods sold $6,325 Sales commissions 1,375 Utilities expense 1,100 Fixed expenses: Salary expense 3,250 Depreciation expense 2,000 Rent expense 1,000 Utilities expense 500 Total expenses $ 15,550 Operating income $950

GoTray's manufacturing capacity is 6,250 trays. If actual volume exceeds 6,250 trays, the company must expand the plant. In that case, salaries will increase by 20%, depreciation by 15%, utilities by $300 and rent by $800.

Prepare flexible budget income statements for the company, showing output levels of 5,500, 6,000 and 6,500 trays.