Please create a budgeted segement income statement for Patty!

Standup Paddleboarding (SUP) has been growing in popularity over the past five years, and Paddle Perfect Ltd. has benefitted from the trend. The company produces SUP accessories for: a boardbag to shield the boards from UV rays when the board is stored outside, a lightweight aluminum paddle, and leashes worn around the ankle to ensure the paddleboard and rider are not separated. Patty Power, the only shareholder of Paddle Perfect Ltd., has been very conservative in managing the growth of the business. Patty expects the favourable trend for paddleboarding to continue and is considering options to grow the business. In particular, Patty has been attending trade shows over the past year and has become aware of a growing demand for carbon paddles which are lighter and more responsive than the aluminum paddles used by most beginning riders. Patty has scheduled a meeting with her senior managers to discuss options for the business. She has also compiled some key historical financial data regarding volume, sales prices, and production costs of the three products sold to date and carbon paddles that may be sold in the future. Planning was perfect in the prior-year (as is only possible in a case study!) and the assumption is that there is no inventory at the beginning and end of the year. The prior-year data is presented below: Key Historical Data for Paddle Perfect Ltd. Manufacturing Costs Units sold Selling price Direct material Direct labour Variable overhead - percent of direct labour Leashes 50,000 $30.00 $11.25 $10.00 Boardbags 25,000 $110.00 560.00 $37.00 Paddles 30,000 $80.00 $20.00 $51.50 10% 10% 10% Fixed annual costs for the company are as follows: Fixed manufacturing overhead* $250,000 Corporate fixed expenses: Research and development $20,000 Selling and marketing $58,000 General administrative $25,000 * Fixed manufacturing overhead is allocated to segments based on variable overhead amounts. All three managers have received the above information and were asked to review it prior to the meeting. In addition, Patty has provided them with her assumptions regarding business performance next year. Specifically, she expects product sales prices to remain unchanged, sales volumes for all products to increase by 10%, product variable costs to increase by 3%, and all fixed costs to be held to an increase of 2%. Patty has asked that the three managers come to the meeting prepared to present a strategic option for next year's operations. The managers have been told that the option they develop must focus on the paddleboarding industry. She also advised the managers that the banks are threatening to increase the company's borrowing rate if she is unable to demonstrate that next year's profit margins will improve. The following three options were presented at the strategy meeting