PROBLEM 4-8. The Profit Equation. Gaming Solutions is a small company that assembles PCs to gamer customer specifications. The company buys all of its component parts from Northern Oregon Computer Warehouse. In the past year, the company had the following before-tax profit:

Sales		$1,800,000
Less:
Cost of Components	$1,080,000
Staff Salaries	$280,000
Rent	$40,000
Utilities	$8,000
Advertising	$7,000	$1,415,000
Operating profit before bonuses		$385,000
Less:
Staff bonuses		$115,500
Profit before taxes and owner draw		$269,500

The company, owned by Steven Rich, has seven full-time employees. These employees are each paid a base salary of $40,000 per year. In addition, they receive a bonus equal to 30 percent of operating profits before bonuses. Owner draw is the amount Steven pays himself out of company profits.

The company is in the process of planning profit for the coming year. Northern Oregon Computer Warehouse has agreed that their prices to Gaming Solutions will be reduced by 20 per- cent on all purchases over $1,000,000.

Required

Estimate profit before taxes and owner draw for five levels of sales: $1,600,000; $1,700,000; $1,800,000; $1,900,000; and $2,000,000. (Round all calculations to the nearest dollar.)