17 points Problem 2 As the CFO of a small business, you have gathered the following data regarding the forecast for 2022 as compared to 2021; 1) Sales are expected to increase by 15%, 2) Cost of Goods sold are expected to increase by 3% over and above the increase related to the sales increase. COGS in 2015 are 50% of Sales. 3) Research and Development is forecast to increase by 8%. 4) Regarding SG&A costs: Salaries are expected to increase by 3% with health care costs going up by 8%. I new employee will be hired (Jan 1 2016) with a cost in salary of $50,000 with health care being the same as the other employees. Payroll tax will be 7.5% of salaries. Rent will be $255,000 with utilities going up by 5%. The company puts 3% of the salaries into the company's retirement program. The company will increase advertising by $5,000. What is the forecast for 2016 by line item? 2016 Sales COGS Gross Profit 2015 3,750,000 1,875,000 1,875,000 R&D 250,000 SG&A Memo Employees Salaries Health Care Payroll Tax Retirement Rent Utilities Advertising Total SG&A 11 825,000 171,600 61,875 24,750 255,000 12,500 20,000 1,370,725 254,275 Profit Before Tax Profit Margin 7%