Q2: Bose Corp. entered the fast-growing virtual Reality Systems (VRS) in 2016. The overall demand for VR systems grew from 5 million units to 60 million units and Bose market share grew from 3% to 15% in 5 years. The table below shows the market growth, Bose market share and unit selling price. 1 Market Size Year 2016 2017 15 2018 25 2019 30 2020 60 Market Share units Percent 3% 5% 10% 14% 15% Unit Price $/unit 599 699 689 650 625 Bose Cost of Goods Sold is 29.4% of revenue. Company's General Expenses is $ 5 million in year 1 and expect to grow 20% annually as the sales increase. Bose Sales & Marketing Expenses (S & M) are given below. Sales & Marketing Expenses Consumer Promotion Advertising Sales Force Corporate Overhead as % of sales 3.4% 5.0% 3.8% 3.3% A. Use chain ratio method to estimate Bose sales revenue for the five years. B. Develop an income statement for the next five years for Bose Corp Margin Calculations Suppliers and retailers set the sales price by adding a margin to their total cost of producing/acquiring the product. The margin is estimated either as a % of Total Cost or as % of Sales Price. Sales Price (SP) = Total Cost (TC) + margin as % of TC Sales Price (SP) = Total Cost (TC) + margin as % of SP