You have an internship at The Bike Store.The Chief Financial Officer needs your help to prepare the 2021 Budget which YOU will present to the Board of Director's Meeting at their meeting next week.

Your task is to create the 2021 Budget in an Excel Spreadsheet.You only need to an Income Statement

Assume:

1.The company will sell 16,000 bicycles at an average price of $2,500 each

2.Cost of Labor is 20% of Sales

3.Cost of Materials is 10% of Sales

4.Variable Overhead is 6% of Sales

5.Fixed Manufacturing Overhead is $4,000,000

6.Office Salaries are 5,000,000

7.Office Deprecation Expense is $500,000

8.Lease Expense of Corporate Office is $2,000,000

9.Advertising is $1,000,000

10. Income Taxes are 30% of all revenues minus all expenses before income taxes.

The Board of Directors will also want to know, with the assumptions above what would be the company's:

A.Gross Profit Margin?

B.Operating Profit Margin?

C.Net Profit Margin?

D.Number of bicycles to sell to breakeven?Assume if the company is breakeven, income taxes will be zero.

Since this is an internal report, you don't necessarily have to use a GAAP Income Statement