Less:

Sales Sales Tax Net sales Cost of Gods sold Gross Profit General and administrative expenses Selling and Distribution expense Net profit

Projected Income Statement Year 1 Year 2 2,320,000 (320,000) 2,000,000 (1,250,000) 750,000 (400,000) (160,000) 190,000

Year 3

Year 4

Add: Add: less:

opening Inventory Purchases Freight Wages Ending Inventory cost of goods available for sale

Cost of Goods Sold 0 0 1000000 1200000 50000 50000 200000 240000 0 0 1250000 1490000 General and administrative expenses 240000 240000 480000 Selling and Distribution expense 150000 20000 170000

Salaries Rent Total

Marketing Disrtibution

Year 5

vc FC S.P

Break even 125000 2000 480000 150000

127000 630000 200,000 8.63

Break even units