150 annual cost Income statement projections In the income statement forecast as shown in appendix 1 we assume: Sales grow at 10% annually Variable costs vary with the number of units sold All units produced are assumed to be sold Fixed costs remain constant throughout except the marketing, and product development costs Tax rate of 24% is to remain constant Marginal costing method has been used in projecting the income statement.... Appendix INCOME STATEMENT forecast 2013 2014 2015 2016 2017 Number of units sold 100,000 110,000 121,000 133,100 146,410 sales 1,000,000 1,100,000 1,210,000 1,331,000 1,464,100 Less variable costs: Variable service costs 1,800 1,980 2,178 2,396 2,635 variable delivery & dispatch costs 50,000 55,000 60,500 66,550 73,205 Direct labor costs: Plate 90,000 99,000 108,900 119,790 131,769 Nail 100,000 110,000 121,000 133,100 146,410 Total Variable costs 241,800 265,980 292,578 321,836 354,019 Less overheads costs: Fixed service costs 10,800 10,800 10,800 10,800 10,800 Staff wages 33,000 33,000 33,000 33,000 33,000 Media and Public relations: Exhibitions costs 9,000 9,000 9,000 9,000 9,000 Marketing and brand development 25,800 28,380 31,218 34,340 37,774 78,600 81,180 84,018 87,140 90,574 Net Profit Before Tax 679,600 752,840 833,404 922,024 1,019,507 Tax @24% (163,104) (180,682) (200,017) (221,286) (244,682) Operating income 516,496 572,158 633,387 700,739 774,825 The operating income is a projection of financing the company needs....
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The forecast contains the intended tank load production every month from May through September.... The company's maximum tank loads production in a particular month is 60 tank loads, in May the forecast is 50 tank loads, in June it is 60, in July 70, in August 90, September 80 and finally October 70.... When managers use price-based strategy, the products are usually planned according to cost-plus pricing, value-based pricing as well as target-return pricing....
3 Pages
(750 words)
Essay