Problem:
Explain how outsourcing would impact the pro-forma income statement. You may utilize Excel for calculations and/or presentation of financial analyses related to the assignment.
Be sure to support your position using information from the assigned text(s) reading and other sources and utilize Microsoft Excel with formulas for any calculations.
Silver Company has asked you to prepare a pro-forma income statement for the coming year. The following information is available:
Expected sales revenue $1,240,000
Manufacturing costs:
Variable cost of goods sold 625,000
fixed overhead 125,000
Selling expenses:
Variable expenses 140,000
fixed expenses 45,000
Administrative expenses:
Variable expenses 45,000
Fixed expenses 160,000
Other:
Interest expense 28,000
Income tax rate 35%
Please use Excel for calculations
Prepare a pro-forma contribution margin income statement for Silver Company.
Can you explain how outsourcing would impact the pro-forma income statement. Be sure to support your position using information from the assigned