Gaming Solutions is a small company that assembles PCs to gamer customer specifications. The company buys all of its component parts from Northern Oregon Computer Warehouse. In the past year, the company had the following before-tax profit:

The company, owned by Steven Rich, has seven full-time employees. These employees are each paid a base salary of $40,000 per year. In addition, they receive a bonus equal to 30 percent of operating profits before bonuses. Owner draw is the amount Steven pays himself out of company profits.
The company is in the process of planning profit for the coming year. Northern Oregon Computer Warehouse has agreed that their prices to Gaming Solutions will be reduced by 20 percent on all purchases over $1,000,000.
Required
Estimate profit before taxes and owner draw for five levels of sales: $1,600,000; $1,700,000;
$1,800,000; $1,900,000; and $2,000,000. (Round all calculations to the nearest dollar.)

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Sales $1,800,000 Less: Cost of components Staff salaries $1,080,000 280,000 Rent 40,000 Utilities 8,000 Advertising 7,000 1,415,000 Operating profit before bonuses Less: Staff bonuses 385,000 115,500 $ 269,500 Profit before taxes and owner draw