Exhibit 1: Sales and Cost Forecast The sales forecast is based on projected levels of demand. All the numbers are expressed in today's dollars. The forecasted average inflation per year is 2.5% Price per bus $220,000 Units sold per year 11,000 Labor cost per bus $50,000 Components & Parts $95,000 per bus Selling General & $250,000,000 Administrative (fixed) NOTE: Average warranty cost per year per bus for the first five years is $1,000. The present value of this cost will be used as a cost figure for each bus. Afterwards, the bus operator will become responsible the repairs on the buses. The buses can be produced for twenty years. Afterwards, the designs become obsolete.Engine choices Engine Detroit engines Marcus engines Price per engine, including installation $25,000 $18,000 Average annual warranty cost per year for five $500 $2,000 years. Afterwards, the bus operator will become responsible for the repairs on the buses. * The chosen engine will be installed in every bus and will become a cost figure for each bus. NOTE: The engine manufacturers are not providing Road King Trucks with any warranty. However, Road King Trucks will provide a warranty to its customers. After the initial five years, the bus operators may purchase an extended warranty from any insurance company that offers such packages