Green Thumb, Inc. has a factory that produces custom greenhouses and other garden related items. It has multiple product lines. Materials and labor for the green houses are determined by each job. To simplify the assignment, we will assume the following average costs. The company estimates that it will have 30,000 direct labor hours in total for the green houses. The materials include $1,200 on a per job basis. It requires 15 hours of labor on average for a custom greenhouse. The hourly rate is $10. The sales price will be set at a markup of 75%. It assumes 2,000 units are sold on average per year. A breakdown of estimated yearly costs related to the greenhouses follows. Please note that the amounts are per year unless identified otherwise:

Salaries- office & administrative	$600,000
Salaries for factory supervisors and janitors	$120,000
Office Rent	$120,000
Factory Rent	$90,000
Office Utilities and Misc office expenses(based on units sold)	$20,000
Sales Travel(based on units sold)	$24,000
Insurance - office	$14,000
Depreciation - office equipment	$45,000
Depreciation for factory equipment	$55,000
Advertising	$100,000
Sales commissions(based on units sold)	$80,000
Factory Property taxes	$10,000
Maintenance for factory equipment	$60,000

QUESTIONS:

5. Prepare a traditional Income Statement assuming a volume of 2,000 units. For the cost of goods sold, please use the per unit cost you calculated in #2 multiplied by number of units sold. You do not have to prepare any additional schedules. I would use a similar format to exhibit 16-8 on page 737 or from your lecture notes. I recommend that you list out all operating expenses given above. Do not use just Selling and General/Administrative Expenses for your categories. Points will be lost by not listing out all period costs. You can ignore interest and income tax expense.