1. Using the unit cost developed in Part 2, determine a selling price for your p

1. Using the unit cost developed in Part 2, determine a selling price for your product. Be sure to check stores
or the internet for selling prices of similar products.
2. Prepare a break-even analysis for your product. In addition, determine the margin of safety, the margin of safety
percentage, and operating leverage.
3. Prepare a pro-forma Income Statement based on a projected number of unit you think you can sell. Include
your salary as an administrative expense and other anticipated Selling and Administrative expenses such as
BUS 221 | Managerial Accounting 4
Marketing. Create a detailed quarterly master budget for the 1st year and continue with a less-detailed cash
budget for the next 4 years (5 total).