create an Income Statement for the Question. Keep in mind the following: 1. Star

Question

create an Income Statement for the Question. Keep in mind the following: 1. Start with total revenue, and subtract cost of goods sold to calculate gross margin. 2. Subtract total expenses from gross margin to calculate net profit. Your task is to create an income statement for a company that had the following results last period. Units Sold 100,000 Consumer promotion $1, 800, 000 Unit Cost $40 Personal Selling 5 sales people @ $80,000 each Price $90 Dealer Promotions $1,200, 000 Advertising $1,500,000 Product Development $700, 000 INCOME STATEMENT Revenue (units sold * price) Cost of Goods Sold (units sold * unit cost) Gross Margin: (revenue- cost of goods sold) EXPENSES

Explanation / Answer

         INCOME STATEMENT

Revenue   ( 100,000 * 90 )                9,000,000

Cost of goods sold (100,000 * 40)   4,000,000

Gross Margin                                  5,000,000

Consumer promotion                        1,800,000

Personal selling expenses                   400,000

Dealre promotion                              1,200,000

Asvertising                                     1,500,000

Product developmen                            700,000

Net Loss        600,000                                         

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