Jse the back of the page or scratch paper to solve the questions. Questions 1. The management of Sunshine Inn wishes to budget the income statement for 2011 by using the Income statement from the prior year. The income statement in 2010 was as follows: $100,400 Total Revenues Expenses Labor (FO Labor (V) Cost of Goods Sold (COGS. V Supplies (VO Energy Promotion (VO Maintenance (FC Maintenance (VC Property Toees (FC Depreciation (FC) Rent (FC) Insurance (FC Total Expenses Net Income $12.000 $18.000 $36.000 $3.200 $2,620 $1,300 $2.000 $1,200 $800 $1,000 3850 $625 $79,595 $20,805 The management has come up with several budgeting assumptions as (a) total revenues are expected to increase by 10.00%, (b) total fixed costs are expected to increase by 5.00% and (c) total variable costs are projected to increase proportionally with the increase in total revenue Based on the income statement of 2010 and the budgeting assumptions, budget the income statement of 2011 for Sunshine Inn a meg. in Pg. 112e Aa 6