Problem 2: Bargains, Inc. manufactures and markets toys. Selected income statement data from 2010 and 2009 appear below: Required: 1. An analyst can sometimes estimate the variable cost as a percentage of sales for a particular cost by dividing the amount of the change in the cost item between two years by the amount of the change in sales for those two years. The analyst can then multiply the variable cost percentage times sales to determine the total variable cost. Subtracting the variable cost yields the fixed cost for the particular item. Follow this procedure to determine the cost structure ( fixed costs and variable costs) for costs of goods sold for Bargains, Inc. 2. Bargains, Inc. Projects sales to grow at the following percentages in futures year: 2011: 9\%; 2012, 11\%; 2013. 10\%; 2014, (15%);2015,(20%). Using this information, project sales, costs of goods sold, gross profit, and gross margin for Bargains, Inc fo 2011 to 2015. 3. Comment on the cost structure of the company