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XYZ Company sells one product. Sales for 2018 are forecasted to be 200,000 units. The product is priced at $55 per unit. The product contains

XYZ Company sells one product. Sales for 2018 are forecasted to be 200,000 units. The product is priced at $55 per unit. The product contains $11.50 of materials per unit and costs $8.25 per unit to assemble. Annual promotion costs are budgeted at $550,000. There are three salespeople each earning a base salary of $50,000 per year plus 20% commission. The product is shipped in cases of 12 at a cost of $24 per case to deliver. Overhead expenses total $155,000. Create a pro forma income statement for the upcoming year, and address the following questions.

  1. What is the expected revenue (total sales in dollars) for 2018?
  2. What is the expected total cost of goods sold for 2018?
  3. What is the expected total marketing expense for 2018?
  4. Marketing expenses represent what percentage of sales?
  5. What is the projected net income for 2018?

Please do not copy from Chegg otherwise I have to report the answer. Explain the answer throughly by showing each step of the calculation.

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