AIS -- Betty's Bobbleheads
| BETTY'S BOBBLEHEADS | |||||||
| Prepared by Margaret Cheatham | |||||||
| 4/15/03 8:04 AM | |||||||
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | TOTAL | ||
| Units Sold | 9,000 | 9,540 | 10,112 | 10,719 | 11,362 | 50,734 | |
| Selling Price/Unit | $2.75 | $2.82 | $2.89 | $2.96 | $3.04 | ||
| Manufacturing Cost/Unit | $1.25 | $1.29 | $1.34 | $1.39 | $1.43 | ||
| REVENUES | $24,750 | $26,891 | $29,217 | $31,744 | $34,490 | $147,092 | |
| COSTS | 
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| Manufacturing | $11,250 | $12,342 | $13,541 | $14,856 | $16,298 | $68,287 | |
| Advertising | $950 | $855 | $770 | $693 | $623 | $3,890 | |
| Overhead | $1,750 | $1,776 | $1,803 | $1,830 | $1,857 | $9,016 | |
| TOTAL COSTS | $13,950 | $14,974 | $16,113 | $17,378 | $18,779 | $81,194 | |
| GROSS PROFIT | $10,800 | $11,917 | $13,104 | $14,366 | $15,711 | $65,898 | |
| TAXES | $3,888 | $4,290 | $4,717 | $5,172 | $5,656 | $23,723 | |
| NET PROFIT | $6,912 | $7,627 | $8,386 | $9,194 | $10,055 | $42,175 | |
| ASSUMPTIONS | |||||||
| Manufacturing cost | $1.25 | per unit | |||||
| Manufacturing cost growth | 3.50% | per year | |||||
| Advertising costs | $950.00 | per year | |||||
| Advertising decrease | 10.00% | per year | |||||
| Overhead costs | $1,750.00 | per year | |||||
| Overhead costs growth | 1.50% | per year | |||||
| Selling price | $2.75 | per unit | |||||
| Price increase | 2.50% | per year | |||||
| Inititial sales units | 750 | boxes per month | |||||
| Unit sales increase | 6.00% | per year | |||||
| Months | 12 | per year | |||||
| Tax rate | 36.00% | per year | |||||