Question 1

A company had the following results last period:

Item	Value
Units Sold	90,000 units
Unit Cost	$31
Price	$80
Advertising	$1,500,000
Consumer Promotion	$1,700,000
Personal Selling	7 salespeople @ $80,000 each
Dealer Promotion	$900,000
Product Development	$800,000

Using the template below, create a NewShoes income statement based on the sales, cost, and expense data provided above.

Item	Value	Note
Revenue	$7,200,000	units sold price
Cost of Goods Sold	$2,790,000	units sold unit cost
Gross Margin	$4,410,000	revenue cost of goods sold
Advertising	$1,500,000	expense
Consumer Promotion	$1,700,000	expense
Personal Selling	$560,000	expense
Dealer Promotion	$900,000	expense
Product Development	$800,000	expense
Total Expenses	$5,460,000	sum of expenses
Net Profit	$ ?	gross margin total expenses

• Question 2 If prices were increased by $10 per unit, but unit sales remained the same, what would the new level of Gross Margin $5,310,000
• Of Net Profit?$
• Question 3 If instead, the unit cost could be lowered by $10, and unit sales remained the same, what would be the new level of Gross Margin? $
• Of Net Profit?$
• Question 4 If instead, the marketing team decided to add 3 salespeople and unit sales increased by 8,000 units, what would be the new level of Gross Margin? $4,802,000
• Of Net Profit?