The following information is available for 2020 for Riley Products:
Revenue (200,000 units) $2,100,000
Manufacturing costs:
Materials 300,000
Variable overhead cash costs 200,000
Fixed overhead cash costs 150,000
Depreciation 300,000
Marketing and administrative costs:
Variable Marketing costs 250,000
Marketing depreciation 100,000
Administrative cash costs 200,000
Administrative depreciation 50,000
Total costs $1,550,000
Operating profits $ 550,000
All depreciation charges are expected to remain the same for 2021. Sales volume is expected to increase by 20 percent, but prices are expected to fall by 12 percent. Material costs are expected to decrease by 10 percent. Variable manufacturing overhead costs are expected to decrease by 5 percent. Fixed manufacturing overhead costs are expected to increase by 6 percent.
Variable marketing costs change with volume. Administrative cash costs are expected to increase by 15 percent. Inventories are kept at zero.
Required:
Prepare a budgeted income statement for 2021. Round budget line items to the nearest dollar.