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  3. cycle-1 is a fast-growing start-up firm that manuf

Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is avallable...

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Accounting

image Cycle-1 is a fast-growing start-up firm that manufactures bicycles. The following income statement is avallable for October: Sales volume is expected to increase by 30 percent in November, but the sales price is expected to fall 5 percent. Varlable manufacturing costs are expected to Increase by 3 percent per unit in November. In addition to these cost changes, varlable manufacturing costs also will change with sales volume. Marketing and administrative cash costs are expected to increase by 10 percent. Cycle-1 operates on a cash basis and maintains no Inventorles. Depreclation is fixed and should remain unchanged over the next thre years. Requlred: Prepare a budgeted income statement for November. (Do not round Intermedlate calculations.)

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