INDUSTRY A FIRM 2 **************** Pro Forma Financial Summary **************** 2_Smart5 Channel 1 Channel 2 Total -------- Est. Units Sold 18000 12000 30000 Wholesale Price $140.00 $140.00 Base Unit Cost $60.00 $60.00 Gross Sales $2,520,000 $1,680,000 $4,200,000 Cost of Goods Sold $1,080,000 $720,000 $1,800,000 Gross Margin $2,400,000 Expenses Advertising $300,000 Sales Force-Salary $200,000 $200,000 $400,000 -Firing Costs $0 -Commission $126,000 $84,000 $210,000 Customer Service $160,000 R&D for Product Modifications $40,000 Marketing Research $79,000 Total Expenses $1,189,000Net Contribution (Loss) $1,211,000 Total Spending Charged Against Budget: $979,000