three observations on your forecast and areas of improvement for the company. Answers on the income Stmt History Tab $($Highlighted in green$)$

$5\%,$ but only for the first three years. After that the commission drops back to the standard $2\mathrm{.}53$ of Sales."

From Marketing VP$,$ Janet James: "Welcome to the team, we're really exited to have you aboard.

Sal's probably gave you the scoop on our existine products Sales growth. We're really excited

about the new products of Outdoor Furniture and Gaming Furniture. Sal is sandbagging me that

they will only sell $$5,000$ of Outdeor Furniture and $$4,500$ of Gaming Furniture. I don't like it$,$ but

it's fair because his gurs really haven't seld in those markets before. However, we really think the

will take off for the next three years. Our marketing analyst has come up with the following

probability numbers for sales growth. We also own gross margin, but it is heavily dependent on

Operations."

First $3$ Yrs

Last $2$ Vrs

From Operations YP: Jae Bagadonuts: 'Hows ya$\text{'}$ deing? Loek we do a good job on our cests for the

most part. You can see the detail, but we cenerally keep COG$5$ at $705$ of Sales. So that's a good

estimate for existing products. New products are harder to predict as we can often leverage new

suppliers to get better prices in exchange to become long term vendors with us$.$ What that means is

that we tend to have lower costs for a few years and then they start putting the screws to us and

our costs go up$.$ The chart at left is what you should expect for new products."

Expected Sales Growth of New Products

New Products Cost Proflile

From Chief Accounting Officer, Aleisha Sanders: $"$So hopefully the team has been good to you. I can fill out the rest

of the details. Our General and Admin costs vary in steps. We found once total Sales went over $$16$Ok$,$ our total

G$.$A$.$ jumped from $10\%$ to $12\%$ of total Sales. We would anticlpate a similar fump from $12\%$ to $14\%,$ once Sales go

over $$210k.$ Fred says that he won't talerate expense growth beyond that. We don't have any debt, so no Interest

expense. Taxes are the standard rate of $21\%.$