The following information is available for year 1 for Pepper Products: $3,510,000 $ 208,000 177,000 408,000 1,244,000 Sales revenue (130,000 units) Manufacturing costs Materials Variable cash costs Fixed cash costs Depreciation (fixed) Marketing and administrative costs Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total costs Operating profits 525,000 186,000 633,000 94,000 $3,475,000 35,000 All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to fall by 6 percent, but prices are expected to rise by 15 percent. Material costs per unit are expected to increase by 9 percent. Other unit variable manufacturing costs are expected to decrease by 7 percent per unit. Fixed cash costs are expected to increase by 5 percent. Variable marketing costs will change with unit volume. Administrative cash costs are expected to increase by 4 percent. Inventories are kept at zero. Pepper Products operates on a cash basis. Required: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) PEPPER PRODUCTS Budgeted Income Statement For Year 2 Required: Prepare a budgeted income statement for year 2. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.) PEPPER PRODUCTS Budgeted Income Statement For Year 2 Sales revenue Manufacturing costs Materials Depreciation (fixed) Fixed cash costs Other variable costs $ 0 Total manufacturing costs Marketing and administrative costs: Marketing (variable, cash) Marketing depreciation Administrative (fixed, cash) Administrative depreciation Total marketing and administrative costs $ 0 Total costs $ 0 Operating profit