Yards-R-Us is considering the addition of a new line of organic fertilizer. It is expected that each application of fertilizer will sell for $16.50 and the variable operating cost per application will be $11.00. Total fixed operating costs are expected to be $40,000. The company has a 30% tax rate and will have interest expense associated with this line of $12,000. Yards-R-Us expects to sell 10,000 applications in the first year.

e. If sales are expected to increase by 10% next year, show the Proforma Income Statement.