Using Actual Results for 2020, Prepare Budgeted Income Statement for 2021 2020 Actual Revenues $ 6,000,000 Sales of Equipment Sales of Maintenance Contracts 1,800,000 Total revenues $ 7,800,000 Cost of goods sold Gross margin 4,600,000 $ 3,200,000 Operating expenses Marketing Distribution 600,000 150,000 Customer maintenance 1,000,000 900,000 Administration Total expenses 2,650.000 Operating Income $ 550,000 1. Selling prices of ipment are expected to increase by 10% as the eco recovery begins. 2. Selling price of maintenance contract is expected to remain unchanged. 3. Equipment sales in units are expected to increase by 6%, with a corresponding 6% growth in units of maintenance contracts. 4. Cost of each unit of equipment sold is expected to increase by 3% to pay for the necessary technology and quality improvements. 5. Marketing costs are expected to increase by $250,000, but administration costs are expected to remain the same. 6. Distribution costs vary in proportion to the number of units of equipment sold. 7. Two maintenance technicians are to be hired at a total cost of $130,000, to improve customer service and shorten response time. 8. There is no beginning or ending inventory