PROVIDE INCOME STATEMENT

Option #2 - Chocolate Promotions Inc. The price that Chocolate Promotions Inc. is willing to pay for each box of chocolates is $3.50. They would require 200,000 boxes each year. As with the artisan pieces, a skilled tradesperson will be required to run the machine at a cost of $25,000 for 1,000 hours. In addition, cleaning costs will amount to $9,000 per year, of which approximately $8,000 will be labour; the remaining amount is an estimate of the cleaning supplies and tools required each year. Each box will contain half a pound of chocolate, but the quality required is substantially lower such that the cost per pound will be only $3.65. Other annual variable costs include $6,000 for moulds, $8,000 for flavours, $4,000 for cream, and $10,000 for the boxes