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1. Calculate a pro-forma income statement for the first year of CCC (assume Steve Davidson does make and sell 30 canoes). Use a price that you think Steve should charge and briefly explain why you chose this price. Also, use 2 other prices (i.e., one that is lower and one that is higher) to examine how CCCs profit could change based on the price he charges. Please consider using Excel for this analysis.
(Note that the case says that ‘Davidson projected almost $90,000 in sales in 1998 with gross profits of $52,000’. I’m not sure what this means, since it looks like he is starting the business in Aug., 1998. For your analysis, please ignore this information when doing your calculations).
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