ABC Company, an outdoor furniture manufacturer, has decided toi ntroduce a new, lightweight he market in the Spring of 2019. This product is new to ABC because for the last focused on selling picnic tables wholesale. This product will be sold 50 years the company has directly to retail stores by a newly formed sales force. As part of the N will need to conduct some initial business analysis. Your team is putting together a pro-forma income statement. Use the below data to create an income statement for the first quarter of 2019 ew Product Team you Marketing has projected that is will cost $85,000 a quarter to support a sales force. The initial up front cost will be $150,000 to create this new sales department (these monies will be secured with a $1,000,000 loan that ABC will get at 3.5% interest or S8.750 a quarter). Marketing also has projected that advertising will cost approximately $8,000/qtr. Salaries for the new sales force and the additional factory workers $240,000/qtr. Sales people earn 35 cents per chair as a commission/bonus. The retail price of the new product has been determined to be $40, 538, or $35. ABC will sel the chairs wholesale direct to retailers for $22, $20, or $17 respectively. determined once a business analysis has been conducted. ABC's COGS is 40% of matter what the final price. The price will be wholesale-no 2 chais Review the below income statement and answer the questions below Sales COGS Gross Profit 2 85,600 - 36, 000 Marketing 85,000 Advertising Salaries Commissions EBIT Total Expenses 1350 1295 Earnings Before Interest and Taxes- Interest- Earnings before taxes Taxes (18%) Net Income- $5899 120991