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, as well as 2 other prices that are lower and higher than that to examine how CCCs profit would change based on the price he charges.

        In the Pro forma Income statement it is assumed that Davidson will produce and sell 30 canoes. It is decided to charge $3500 from the customers because it will require to sell 12 canoes to achieve breakeven. It can be seen that with the price of $3500 business can earn $54994. If the price increase up to $4000 than the profit also increases up to 69994. If price decrease to $3000 the revenue of the business also reduce to 39994.

   Also  consider  what  would  happen  if  Steve  is  not  able  to  complete  30  canoes  per  year.  How  does  the  pro-forma  income  statement  change  if  he  is  only  able  to  produce  20  or  25  canoes?  You  can  use  the  price  that  you  think  Steve  should  charge.  Please show your work on a separate pro-forma income statement.

        In the above Pro Forma Income Statement it is assumed that the company will sell & produce 20 canoes or 25 canoes. The price is kept $3500. It is clear that if business unable to produce 30 canoes than the profit of the business decline up to $31604 if 20 canoes are produce and sold to customers. If business produce and sell 25 canoes the profit will be $43299.