IENG377 Engineering Economy Case Study: Mountaineer Manufacturin You are starting a manufacturing company in Pittsburgh, Pa Given the following information, what are the projected income statements for this company for the next 5 years? Management/Administration cost: CEO (Your Salary) $150,000 VP Marketing $100,000 VP Sales Chief Technology Officer $100,000 VP Operations $100,000 Other Administration Personnel Salary Combined: 400,000 125,000 Benefits for above personnel: Add 40% of total salary Inflation: Above salaries are for year 1 . These go up by inflation of 2%/year Total Salary Total Salary + Benefits Year Year 1 Year 2 Year 3 Year 4 Year 5 Facilities: Lease Plum Industrial Court Building. 20,000 sq.ft. @ $16/sq.ft. per vear Included rent and utilities. Lease remains the same over the next 5 years. Depreciation of Machinery: Purchase 5 different automated machines for flexible work cell. The total cost of the machines is spread out over 5 years per IRS rules. Use numbers in chart below for total year by year depreciation in income statement. Year Year 1 Year 2 Year 3 Year 4 Year 5 Depreciation 80000 150000 140000 140000 80000 Sales Forecast: Year Units Forecast 10000 20000 25000 30000 35000 Revenue Forecast unit a $630 per Year 1 Year 2 ear 3 Year 4 Year 5 Direct Product Costs: Per unit labor $210 Assume per unit cost remains the same over the next 5 years Per unit material $310 Assumeper unit remains the same over the next 5 years Units Horecast 10000 20000 25000 Year Direct Labor Cost Direct Material Cost Year 1 Year 2 Year 3 Year Year 5 35000 Tax rate Take off 40% of Before Tax Income as taxes (Put in Less Taxes row) Tax rate represents a combination of federal and state taxes. Assume tax-0, if there is no income or a loss Fill out income statement table below for the next 5 years below: Year Year 1 Year 2 Year 3 Year 4 Year 5 Revenue Management/Administration Cost Facilities Cost Product Costs: Direct Labor Cost Direct Material Cost Depreciation Cost Total Costs Before Tax Income Less Taxes After Tax income