Using the info below

We expect to sell 1000 units of healthy chocolates in year 1, which is expected to increase at 10% per year for next 2 year. Later the constant growth is expected to be 5% for year 4 and year 5.

Let us assume, we will be able to sell the healthy chocolate at 10 per unit, which is expected to remain constant. The variable cost is 8 per unit. The fixed expense is expected to be 2000 per year, which is expected to growth at 3% per annum.

Now let us assume operating profit to be 500, by an increase of 5% per annum.

With the data calculate Profit/(loss

1. Provide an explanation of what assumptions you use to come up with revenue, then explain how revenue will be adjusted for the next four years. This means provide the numbers you use to calculate revenue.

2. Provide an explanation of what assumptions you use to come up with cost of goods sold (if used), and expenses for the first year. Then explain how COGS and expenses will be adjusted for the next four years. This means provide the numbers you use to calculate COGS and expenses.

3. Address all the accounts required Revenue less Cost of Goods Sold (not required for service company) equals Gross Profit Margin less Operating Expenses equals Net Profit.

Healthy Sweet Chocolate Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue 10000.00 11000.00 12100.00 12705.00 13340.25 Cost of Goods Sold 10000.00 10060.00 10121.80 10185.45 10251.02 Gross Margin 0.00% 8.55% 16.35% 19.83% 23.16% Operating Expenses 500 525.00 551.25 578.81 607.75 Profit (Loss) Before Taxes -500.00 415.00 1426.95 1940.73 2481.48