Construct a pro forma income statement for the first year and second year for the following assumptions:
- Units of Sales in Year 1: 100,000
- Price 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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