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Projected Income Statement for the Pac Rim Division

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A proposed expansion in a company's Pac Rim division (see attached for more details) will increase average operating assets in the region to $12 million in FY11 from $11 million in FY10. Operating expenses, all in sales and marketing, also increase in the region by $475K in FY11. This will increase the unit volume, but selling prices will remain at the existing prices in FY10. Unit sales growth in Pac Rim as follows: Lowdie grows 20% over FY10, Moda grows 15% over FY10, and Primo grows 7% over FY10.

You expect the gross margin % on each product will be the same as experienced in FY10.

Prepare a projected FY11 Income Statement for Pac Rim based on your assumptions.

Note: the companyââ?¬â?¢s fiscal year ends 12/30/10

See *ATTACHED* file for complete details!

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FY10 FY11
Actual
Sales 124157.19 140543.3529
COGS 65,426.21 52.7% 74061.1069
Gross Profit 58,731.48 66482.246
R& D 13,512.96 10.9% 15296.38925
Sales & ...

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