Create a pro-forma segmented Income Statement (given at the bottom) to determine operating income by variety and Net income after deducting personal income tax rate of 25%

Segmented Income Statement
					Sea Salt Caramel	Milk & Milk	Milk & Flavor	Dark & Dark	Dark & Flavor	Dark & Strawberry Balsamic	Total
Batches produced
Dozens produced per batch
Dozens produced
Dozens produced and sold
Dozens produced and distributed as samples
Cash sales
Credit sales
Less: Credit card fees (3.65% of credit sales)
Net sales
Cost of goods sold
Gross margin
Promotional costs on samples
Operating income (loss)
Less: Income tax (at individual tax rate)
Net income (loss)

Sea Salt Caramel Milk & Milk Milk & Vanilla Dark & Dark Dark & Amaretto Dark & Cherry Dark & Raspberry Dark & Mint Dark & Orange Dark & Vanilla Dark & Strawberry Balsamic Total 10 20 10 10 10 10 15 4 Batches produced Dozens per batch Dozens produced Dozens produced and sold Dozens produced as samples 15 4 60 15 5.5 82.5 66 16.5 4 4 80 10 4 40 4 60 40 10 4 40 32 8 40 48 32 135 45.5 562.5 450 112.5 40 32 8 64 32 40 32 8 32 40 32 8 48 R 12 8 16 B 8 8 12 Assumptions Percentage of production sold Percentage of production used as samples Estimated total production, in batches Price per dozen Percentage of credit card purchases Percentage of cash purchases Bank fees for credit/debit card purchases Individual tax rate Dozens produced, one batch regular truffles Hours required per batch, regular truffles Dozens produced, one batch Sea Salt Caramel truffles Hours required per batch, Sea Salt Caramel truffles Direct labor rate, per hour Estimated charge for utilities, rent, etc (per DLH) 80% 20% 135.00 $ 18.50 85% 15% 3.65% 25% 4.00 3.00 5.50 3.25 $ 10.00 $0.12 e Sea Salt Caramel Milk & Milk Milk & Flavor Dark & Dark Dark & Flavor Dark & Strawberry Balsamic 13.69 $ 1.60 $ 13.69 2.60 $ $ $ $ 13.69 $ - $ 8.95 $ 22.64 $ 13.01 $ - $ $ 13.01 $ 13.01 $ 1.60 $ - $ 14.61 $ 13.69 $ - $ - $ 13.69 $ 15.29 $ 16.29 Costs per batch Direct materials - ingredients Basic Fondant Flavoring Sea Salt Caramel Total costs for ingredients Direct labor At $10 per hour Overhead Decorative icing Estimated charge for utilities, rent, etc. Charge for consumables (wax paper, storage boxes) Total charge for overhead Total production costs per batch Total production cost per dozen $ 32.50 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ $ $ $ $ $ - $ 0.39 $ 0.46 $ 0.85 $ 55.99 $ 10.18 $ 0.31 $ 0.36 $ 0.46 $ 1.14 $ 44.15 $ 11.04 $ 0.31 $ 0.36 $ 0.46 $ 1.14 $ 45.75 $ 11.44 $ 0.31 $ 0.36 $ 0.46 $ 1.14 $ 44.83 $ 11.21 $ 0.31 $ 0.36 $ 0.46 $ 1.14 $ 46.43 $ 11.61 $ 0.31 0.36 0.46 1.14 47.43 11.86 Packaging cost per dozen For sales Chinese box Tissue paper Business card Total cost for sales packaging, per dozen For promotion Business card $ $ $ $ 0.83 $ 0.23 $ 0.04 $ 1.10 $ 0.83 $ 0.23 $ 0.04 $ 1.10 $ 0.83 $ 0.23 $ 0.04 $ 1.10 $ 0.83 $ 0.23 $ 0.04 $ 1.10 $ 0.83 0.23 0.04 1.10 $ $ $ $ 0.83 0.23 0.04 1.10 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 Total cost per dozen sold Total cost per promotional dozen $ $ 11.28 $ 10.22 $ 12.14 $ 11.08 $ 12.54 11.48 $ $ 12.31 $ 11.25 $ 12.71 $ 11.65 $ 12.96 11.90