2015
Sales (Only US)	955,000
Cost of Sales	592,100
Gross Profit	362,900
Operating Expenses	130,000
Operating Income	232,900
Income Tax (20%)	46,580
Net Income	186,320

- Increase the sales of women's clothing in the US by 35%.

- Add men's clothing for the first time in its product line; total of 12,000 men's suits will be sold in 2016 at an average price of $275 per unit. These coats will be purchased from a South African company at a price of $185 per unit and sold to only Online customers. Fatima Company also will offer incentives to customers; customers can buy the suit and a nice silk tie for a price of only $300. The ties cost the company $8/unit and it is expected that 20% of the men's market will buy the "package" deal.

- The cost of goods sold for the existing (US) product line consists of 80% variable and 20% fixed. (Remember, the fixed amount calculated for 2015 will remain unchanged for 2016 and only the variable expenses will change with the sales; SAME APPLIES FOR THE OPERATING EXPENSES).

- The operating expenses for the existing line of business are 45% fixed and 55% variable.

- The variable operating expenses for the online market will be 20% (as a percent of online sales of men's suits): In addition, there will be fixed operating expenses for the online business in the amount of $65,000/ per year.

Calculate the net projected income for 2016, assuming the tax rate stays the same. (Note that the company and not the product lines pay the tax).

Calculate the percent change in profit margin.

Use the format attached.

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Income Statements
For the Year Ended 2015(Actual) and 2016 (Projected)
	2015 (Actual)	2016 (Projected)
	Womens	US-Womens	Men's-online	Total
Sales (Only US)	955,000
Cost of Sales	592,100
F	118,420
V	473,680
Gross Profit	362,900
Operating Expenses	130,000
F	58,500
V	71,500
Operating Income	232,900
Income Tax (20%)	46,580
Net Income	186,320
Profit Margin
Percent Change from 2015 to 2016
Calculations