The following information is available for 2021for BAM Incorporated:

Revenue (200,000 units) $1,600,000

Manufacturing costs:

Materials cash costs 100,000

Variable overhead cash costs 80,000

Fixed overhead cash costs 125,000

Manufacturing depreciation 300,000

Marketing and administrative costs:

Variable marketing cash costs 200,000

Marketing depreciation 50,000

Administrative 180,000

Administrative depreciation 20,000

Total costs $1,055,000 Operating income $545,000

All depreciation charges are expected to remain the same for 2022. Sales volume is expected to increase by 25 percent, but prices are expected to fall by 10 percent. Material costs are expected to decrease by 10 percent. Variable manufacturing overhead cash costs are expected to decrease by 10 percent per unit. Fixed manufacturing cash overhead costs are expected to increase by 10 percent.

Variable marketing costs change with volume. Administrative cash costs are expected to increase by 5 percent. Inventories are kept at zero.

Required:

Prepare a budgeted income statement for 2022.