Tinley Tennis Budgeting Problem: Tinley Tennis Company manufactures tennis racquets. Below are Tinley Tennis' actual 2021 results. Where applicable, the 2021 per unit revenues and costs are shown in parentheses. Assume that materials costs are expected in increase by 8% and labor costs are expected to increase by 5% in 2022. All other costs are expected to increase by 6%. Tinley Tennis' 2022 tax rate is expected to be -30%. The company expects to increase its selling prices by 5% in 2022 and expects to produce and sell 200,000 racquets in 2022. 2021 2022 ACTUAL BUDGETED Performance Performance Sales Revenue ($120 per racquet in 2021) $21,000,000 Variable Costs Direct Materials ($40 per racquet in 2021) 7,000,000 Direct Labor ($25 per racquet in 2021) 4,375,000 Variable Overhead ($8 per racquet in 2021) 1,400,000 Fixed Costs Depreciation 1,040,000 Indirect Labor 2,425,000 Advertising 550,000 ??? Income Taxes 1,320,000 Profit $2,890,000 What is the budgeted Advertising cost for 2022? $594,000 $583,000 $577,500 $550,000 Tinley Tennis Budgeting Problem: Tinley Tennis Company manufactures tennis racquets. Below are Tinley Tennis' actual 2021 results. Where applicable, the 2021 per unit revenues and costs are shown in parentheses. Assume that materials costs are expected in increase by 8% and labor costs are expected to increase by 5% in 2022. All other costs are expected to increase by 6%. Tinley Tennis' 2022 tax rate is expected to be -30%. The company expects to increase its selling prices by 5% in 2022 and expects to produce and sell 200,000 racquets in 2022. 2021 ACTUAL Performance $21,000,000 2022 BUDGETED Performance 7,000,000 4,375,000 1,400,000 Sales Revenue ($120 per racquet in 2021) Variable Costs Direct Materials ($40 per racquet in 2021) Direct Labor ($25 per racquet in 2021) Variable Overhead ($8 per racquet in 2021) Fixed Costs Depreciation Indirect Labor Advertising Income Taxes Profit 1,040,000 2,425,000 550,000 1,320,000 $2,890,000 ??? What is the budgeted Income Taxes cost for 2022? $1,320,000 $1,584,308 $1,497,300 $1,614,705