2017	2016	2015	2014	2013	2012
Sales	$82,770,000	$81,239,174	$84,623,335	$89,076,175	$78,139,375	$69,769,375
Sales In Units	$6,000,000	$5,241,237	$5,459,570	$5,746,850	$5,041,250	$4,501,250
Cost of Goods Sold
Variable	$21,312,000	$29,091,929	$31,122,424	$31,036,240	$27,982,000	$24,985,000
Fixed	$24,264,190	$28,065,240	$23,421,033	$21,901,900	$19,929,000	$18,300,000
Gross Profit	$37,217,231	$24,082,005	$30,079,878	$36,138,035	$30,228,375	$26,484,375
Attributable Costs
Marketing	$5,876,670	$6,644,986	$6,890,610	$6,524,328	$5,890,800	$5,508,750
Orther (primarly fixed)	$3,095,993	$3,017,537	$3,002,522	$2,817,150	$2,606,500	$2,415,000
Product Line Profit
Before G&A Allocation		$14,419,482	$20,186,746	$26,796,557	$21,731,075	$18,560,625
Return On Sales		17.75%	23.85%	30.08%	27.81%	26.60%
Cost Per Unit	$15.50
Sales	6000000*15.50*89%=$82,770,000
Sales In Units	1500000*4
Cost of Goods Sold
Variable	6,000,000*5.55*64%=$21,312,000
Fixed	23,421,033 *103.6%=$24,264,190.18
Gross Profit	$82,770,000-$21,312,000-$24,240,769 = $37,217,231
Attributable Costs
Marketing	7.1% of $82,770,000=$5,876,670
Orther (primarly fixed)	$3,017,537*102.6%=$3,095,992.96
Product Line Profit
Before G&A Allocation
Return On Sales

Questions:

Prepare the budgeted 2017 income statement for Oven-Safe Classic that the production, quality, and product managers considered when they discussed the first option available to them.

1.Under that option, the shipment would be delayed, and about one-third of the years sales of 6,000,000 units would be lost.

2.The product would be sold at the 11% price reduction but produced under the old cost structure for six months (variable production costs of $5.55 per unit). After six months, the variable cost savings of 36% would be achieved.

3.Assume that recycling the current production would add $500,000 to the fixed production costs originally budgeted for 2017. In addition, the product line will incur an additional $2,000,000 in design engineering to solve the problem within a 6-month period (this will involve the use of overtime and consultants).

4.Other cost items would stay as originally budgeted for 2017.

5. What would the product lines profit be under this alternative? What would the return on sales for the product line be?

I need help finishing 2017--I think I did something wrong in the math. Plus, touch on each question.