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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: 30%

-Fixed costs: $125,000

-Income taxes: 15%

-Interest expense: $200,000

-In year 2, Price per unit increases to $11.50, and Unit of sales increases by 5%, all other assumptions remain the same.

Additional Requirements

Level of Detail: Only answer needed

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M940023

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