Exercise 2: A First Excel Assignment uppose a firm has the following situation: Product Price/unit Unit volume/year Cost of $125 8.400 S62 S345 4,200 S188 sold/unit Furthermore, Sales commissions are 3% of sales. Other operating expenses are S General and administrative expenses are $387,000 Interest expenses are S112,000 Income taxes are 46% of taxable income 245,000 Using these assumptions, prepare a pro forma income statement in Excel in the following format Gross sales Net sales less: Commissions xxxX less: Cost of goods sold Gross profit Total gross profit less XXxX Other operating expenses General & administrative Interest expenses Income before taxes less: Income taxes Net income Each of the following questions represents its own deviation from the base case, .e., the questions are not cumulative) . What happens to net income if for product1 the price is increased to S150 and the volume is decreased to 6,500 units? 2, What happens to net income if General & administrative becomes 20% of gross sales? 3. What happens to net income if Cost of goods sold on both products increases by 10%? 4. If the unit volume for product 2 is always half of the unit volume for product 1, what product 1 volume yields a zero net income