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Construct a pro forma income statement for the first and second year for the following assumptions:
Unit of Sales in a year 1: 100,000
Prices per Unit: $10
Variable cost per unit: 30%
Fixed Costs: $120,000
Income Taxes: 15%
Interest Expense: $200,000
In year 2 Price per unit increases to $11.50 and unit of sales increases by 3%, all other assumptions remain the same.
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