Question: Construct a pro forma income statement for the first and second year for the following assumptions: Unit Sales in Year 1: 110,000 Price per unit:

Construct a pro forma income statement for the first and second year for the following assumptions: Unit Sales in Year 1: 110,000 Price per unit: $11 Variable cost per unit: 25% Fixed costs: $129,000 Income taxes: 20% Interest Expense: $170,000 In year 2: Price per unit: $13.50 Unit sales increases 4% All other assumptions are same

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