Please solve the following question.

Required information [The following information applies to the questions displayed below.] FreshPak Corporation manufactures two types of cardboard boxes used in shipping canned food, fruit, and vegetables. The canned food box (type C) and the perishable food box (type P) have the following material and labor requirements. Type of Box C P Direct material required per 100 boxes : Paperboard ($0.32 per pound) 50 pounds 90 pounds Corrugating medium ($0. 16 per pound ) 40 pounds 50 pounds Direct labor required per 100 boxes ($16.00 per hour) 0. 35 hour 0. 70 hour The following production-overhead costs are anticipated for the next year. The predetermined overhead rate is based on a production volume of 440,000 units for each type of box. Production overhead is applied on the basis of direct-labor hours. Indirect material $ 13, 350 Indirect labor 91, 650 Utilities 37,500 Property taxes 25, 000 Insurance 18, 000 Depreciation 45, 500 Total $231, 000 The following selling and administrative expenses are anticipated for the next year. Salaries and fringe benefits of sales personnel $127, 500 Advertising 27,500 Management salaries and fringe benefits 145, 000 Clerical wages and fringe benefits 44, 000 Miscellaneous administrative 7, 000 expenses Total $351, 000 The sales forecast for the next year is as follows: Sales Volume Sales Price Box $115. 00 per hundred type C 445, 000 boxes boxes Box 445, 000 boxes 175. 00 per hundred type P boxes The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year.The following inventory information is available for the next year. The unit production costs for each product are expected to be the same this year and next year. Expected Desired Inventory Ending January 1 Inventory December 31 Finished goods : Box type C 20, 000 boxes 15, 000 boxes Box type P 30, 000 boxes 25, 000 boxes Raw material: Paperboard 13, 000 pounds 3, 000 pounds medium Corrugating 4, 000 pounds 9, 000 pounds Prepare a master budget for FreshPak Corporation for the next year. Assume an income tax rate of 40 percent. 7. Prepare the budgeted income statement for the next year. (Do not round intermediate calculations.)