Oregon Inc All Depreciation Charges Are Fixed and Are Expected to Remain

Oregon Inc. has the following information for its first year of operations:
$\begin{array}{lr}\text {Revenues ( 250,000 units)}&\$3,730,000\\\text {Manufacturing costs:}\\\text { Materials } & \$ 665,000 \\\text { Variable cash costs } & 904,000 \\\text { Fixed cash costs } & 360,000 \\\text { Depreciation (fixed) } & 445,000\\\text { Marketing } \& \text { administrative costs: }\\\text { Marketing (variable) } & 475,000 \\\text { Marketing depreciation } & 113,000 \\\text { Administrative (fixed) } & 450,550 \\\text { Administrative depreciation } & 42,000\\\text {Total costs}&\$ 3,454,550 \\\text {Operating profits}&\$ 275,450\end{array}$
All depreciation charges are fixed and are expected to remain the same for year 2. Sales volume is expected to increase by 13%, and sales prices are expected to increase by 4%. Material costs per unit are expected to increase by 8%. Other unit variable manufacturing costs are expected to increase by 10% per unit. Fixed manufacturing costs (other than depreciation) are expected to increase by 6%.
Variable marketing costs per unit will remain constant. Administrative costs (other than depreciation) are expected to increase by 12%.
Assume there are no inventories. Oregon operates on a cash basis.
Required:
Prepare a budgeted income statement for year 2.

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