The following information is available for year 1 for Pepper Products $2.850.000 $ 168.000 142.100 327.600 899,000 Sales revenus 200,000 units) Manufacturing costs Materials Variable cash costs Foxed cash coete Depreciation foed) Marketing and administrative coats Marketing (variable, cashi Marketing depreciation Administrative (beo, cash) Administrative depreciation Total costs Operating profits 122.100 149.600 509,200 74,800 $2,793,000 $ 57.000 All depreciation charges are fixed and are expected to remain the same for year 2. Seles volume is expected to tell by 5 percent, but prices are expected to rise by 15 percent. Material costs per unit are expected to increase by 12 percent. Other unit variable manufacturing costs are expected to decrease by 10 percent per unit. Fixed cash casts are expected to increase by 4 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 5 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Reguired: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations.) PEPPER PRODUCTS Budgeted Income Statement For Year 2 Manufacturing costs: Tolal manufacturing costs Marketing and administrative costs Total marketing and administrative posts Total costs