Master budget profit plan. Floral Products, Inc., has the following data from Year 1 operations, which are to be used for developing Year 2 budget estimates: Revenues (100,000 units)............................................................................................... $746,000 Manufacturing Costs: Materials ......................................................................................................................... $133,000 Variable Costs................................................................................................................ 180,900 Fixed Costs (excluding depreciation) ...................................................................... 72,000 Depreciation (fixed)..................................................................................................... 89,000 474,900 Marketing and Administrative Costs: Marketing (variable) .................................................................................................... $ 95,000 Depreciation of Marketing Building and Equipment............................................ 22,600 Administrative (fixed) (excluding depreciation).................................................. 90,110 Depreciation of Administrative Building and Equipment................................... 8,400 216,110 Total Costs .......................................................................................................................... 691,010 Operating Profits............................................................................................................... $ 54,990 All depreciation costs are fixed. Sales volume and prices are expected to increase by 12 percent and 6 percent, respectively. On a per-unit basis, expectations are that materials costs will increase by 10 percent and variable manufacturing costs will decrease by 4 percent. Fixed manufacturing costs are expected to decrease by 7 percent. Variable marketing costs will change with volume. Administrative cash costs are expected to increase by 8 percent. Prepare a master budget profit plan for Year 2. Use a format similar to the one shown in Exhibit 9.7. Management wants to increase operating profits by 20 percent over Year 1s $54,990 expected profits. Based on your budget for Year 2, are profits expected to increase by 20 percent? Why or why not?