Marx Engineering, an acclaimed chemical engineering team of engineers, chemists, and other scientists, had the following income in 2020: Revenue $3,890,000 Less operating expenses: Salaries Accounting services Training Supplies Phone and fax Insurance Depreciation Utilities Miscellaneous Total operating expenses Income before taxes Less taxes on income Net income $2,640,000 70,500 199,600 192,500 4.500 332,400 242,000 38,500 7,200 3,727,200 162,800 32,560 $130,240 The following changes are expected in 2021: 1. 2 3. The company is expecting a 10 percent increase in revenues because of increasing demand in the marketplace for its services. Training costs are expected to increase by $55,000. Supplies are expected to increase to 8 percent of revenue. Phone, fax, accounting services, and insurance amounts will stay the same. Depreciation expense will increase by $10,200 per year, since the company is planning to purchase equipment for $84,000. Marx is planning to hire a laboratory technician at a salary of $39,300 per year. Utilities and miscellaneous expenses are expected to increase next year by 10 percent. Taxes on income will be 20 percent. 7 8. Marx Engineering Budgeted Income Statement For Fiscal Year 2021 Revenue $ Less V: Operating expenses Salaries expense Accounting services Training Supplies Phone and fax Insurance Depreciation Utilities Miscellaneous Operating expenses Less V: Income before taxes V Net income/loss) $