In year 2 price per unit increases to 1350 and unit of


Construct a pro forma income statement for the first year and second year for the following assumptions:

Units of Sales in Year 1: 110,000
Price per Unit: $11
Variable cost per unit: 25%
Fixed Costs: $129,000
Income taxes: 20%
Interest Expense: $170,000

In year 2, Price per unit increases to $13.50, and unit of sales increases by 4%, all other assumptions remain the same.

 

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Finance Basics: In year 2 price per unit increases to 1350 and unit of
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