SALES REVENUE (5500 UNITS) $ 2,500,000 00 MANUFACTURING COSTS MATERIALS $ 150,000.00 VARIABLE COSTS 5 95,000 00 FIXED COST $ 150,000.00 DEPRECIATION $ 168,000.00 TOTAL MFG COST $ 563,000 00 MARKETING AND ADMINISTRATION COSTS VARIABLE MARKETING COSTS $ 24,000 00 MARKETING DEPRECIATION $ 32,500.00 ADMINISTRATIVE FIXED COST $ 55,600 00 ADMINISTRATIVE DEPRECIATION $ 13,500.00 TOTAL MKT AND ADMIN $ 125,600.00 TOTAL COST $ 688,600.00 OPERATING PROFITS $ 1,811,400 00 DEPRECIATION CHARGES ARE FIXED, OLD MFG EQ WITH DEPRECIATION OF 15K WILL BE REPLACED WITH NEW EQUIPMENT OF 28K WITH 4 YR LIFE NO SALVAGE SALES VOLUME WILL INCREASE BY 14 PERCENT AND SALES PRICE WILL INCREASE BY 2 PERCENT. MATERIAL COST IS EXPECTED TO GO DOWN MY 3 PERCENT VARIABLE MARKETING COST WILL DECREASE 2 PERCENT A MACHINE IN ADMINISTRATION WITH YEARLY DEPRECIATION OF 3K WILL BE SCRAPPED WITH NO BOOK VALUE LEFT ADMINISTRATION FIXED COST WILL BE REDUCED BY 6 PERCENT PREPARE A NEW FORECASTED INCOME STATEMENT REFLECTING THE ABOVE CHANGES