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Dalley Inc. has the following information for its first year of operations:

YEAR $1$

YEAR $2$

All depreciation charges are fixed and are expected to remain the same for year $2.$ Sales volume is expected to increase by $15\%,$ but sales prices are expected to fall by $4\%.$ Material costs per unit are expected to decrease by $6\%.$ Other unit variable manufacturing costs are expected to decrease by $2\mathrm{.}5\%$ per unit. Fixed manufacturing costs $($other than depreciation$)$ are expected to increase by $6\%.$

Variable marketing costs per unit will remain constant. Administrative costs $($other than depreciation$)$ are expected to increase by $10\%.$

Assume there are no inventories. Dalley operates on a cash basis.

Required:

Prepare a budgeted income statement for year $2.($in above table$)$