4.

50%
2.50%
1.50%

3.50%
1.00%
5.00%

20,764
20,764
20,764

2
r
Ye
a

1
r

Annual Sales Growth Annual Price Increase

Ye
a

Case
1
2
3

(26,018)
(102,846)
(52,263)

157,890
52,180
121,258

149,091
(28,866)
90,095

191,149
(70,468)
106,690

320,314
6,671
206,957

423,380
24,770
277,322

8
r
Ye
a

7
r
Ye
a

6
r
Ye
a

5
r
Ye
a

4
r
Ye
a

3
r
Ye
a

2
r
Ye
a

Ye
a

Net Income

500,941
8,339
317,971

Adaptive Solutions Online

8
Ye
ar

7
r
Ye
a

6
r
Ye
a

5
r
Ye
a

4
r
Ye
a

3
r
Ye
a

42,804,174
29,809,469
12,994,704

45,520,634
31,701,253
13,819,381

48,409,487
33,713,093
14,696,393

51,481,674
35,852,611
15,629,063

54,748,830
38,127,907
16,620,923

58,223,327
40,547,599
17,675,728

61,918,325
43,120,851
18,797,474

65,847,817
45,857,408
19,990,409

3,211,813
500,000
1,050,000
5,992,584
1,455,342
470,846
75,000

3,415,548
625,000
1,113,000
6,372,889
1,547,702
500,727
80,250

3,632,212
430,000
1,179,780
6,777,328
1,645,923
532,504
85,868

3,862,626
525,000
1,250,567
7,207,434
1,750,377
566,298
91,878

4,107,662
550,000
1,325,601
7,664,836
1,861,460
602,237
98,310

4,368,250
450,000
1,405,137
8,151,266
1,979,593
640,457
105,191

4,645,374
400,000
1,489,445
8,668,566
2,105,223
681,102
112,555

4,940,086
400,000
1,578,812
9,218,694
2,238,826
724,326
120,434

12,755,585

13,655,115

14,283,614

15,254,180

16,210,106

17,099,893

18,102,264

19,221,178

Income Tax

239,119
83,692

164,266
57,493

412,779
144,473

374,883
131,209

410,816
143,786

575,835
201,542

695,209
243,323

769,231
269,231

Net Income

155,428

106,773

268,307

243,674

267,031

374,293

451,886

500,000

Sales
Cost of Goods
Gross Margin

r
Ye
a

14-May-15

Ye
a

Eight-Year Financial Projection for Product X

Expenses
Advertising
Maintenance
Rent
Salaries
Shipping
Supplies
Web Services

Total Expenses
Operating Income

Assumptions
Units Sold in Prior Year
Unit Cost
Annual Sales Growth
Annual Price Increase
Margin

242,847
$122.75
3.50%
2.75%
30.36%

Adaptive Solutions Online

42,524,207
29,809,469
12,714,738

46,660,256
32,708,840
13,951,417

51,198,592
35,890,213
15,308,379

3,190,816
500,000
1,050,000
5,953,389
1,445,823
467,766
75,000

3,501,019
625,000
1,113,000
6,532,436
1,586,449
513,263
80,250

3,841,394
430,000
1,179,780
7,167,803
1,740,752
563,185
85,868

12,682,794

13,951,417

15,008,781

Expenses
Advertising
Maintenance
Rent
Salaries
Shipping
Supplies
Web Services

Total Expenses
Operating Income

Income Tax

31,944
11,180

Net Income

20,764

Assumptions
Units Sold in Prior Year
Unit Cost
Annual Sales Growth
Annual Price Increase
Margin

242,847
$122.75
6.79%
2.75%
29.90%

299,598
104,859
194,738

Ye
ar

3
Ye
ar

2
Ye
ar

Sales
Cost of Goods
Gross Margin

Ye
ar

Eight-Year Financial Projection for Product X

61,642,438
43,211,349
18,431,089

67,637,991
47,414,232
20,223,759

74,216,693
52,025,902
22,190,791

4,214,876
525,000
1,250,567
7,864,968
1,910,064
617,962
91,878

4,624,683
550,000
1,325,601
8,629,941
2,095,843
678,067
98,310

5,074,349
450,000
1,405,137
9,469,319
2,299,692
744,018
105,191

5,567,752
400,000
1,489,445
10,390,337
2,523,368
816,384
112,555

16,475,314

18,002,444

19,547,706

21,299,840

322,010
112,704

428,645
150,026

676,053
236,619

890,951
311,833

209,307

278,619

439,435

579,118

8
Ye
ar

7
Ye
ar

6
Ye
ar

5
Ye
ar

4
Ye
ar

Ye
ar

56,178,341
39,381,017
16,797,324

8
Ye
ar

Ye
ar

14-May-15

81,435,261
57,086,118
24,349,143
6,109,145
400,000
1,578,812
11,400,937
2,768,799
895,788
120,434
23,273,913
1,075,230
376,330
698,899