Bargains, Inc Required:
A

Bargains, Inc. manufactures and markets toys. Selected income statement data from 2010 and 2009 appear below:
$\begin{array}{llcc} \text {Bưgains, Lnc. } & \\ \text { Selected Income Statement data } &\\ \text { Fiscal year end } &12 / 31 / 2010 &12 / 31 / 2009\\ \text { (amounts in thousends of dollars) } &\\ \text { Net sales } &\$ 4,885,340 & \$ 4,637,924\\ \text {Cost of GoodsSold } &-3,824,353 & -3,638,990\\\text { Grossprofit } &1,060,987 & 998,934\end{array}$
Required:
a. An analyst can sometimes estimate the variable cost as a percentage of sales for a particular cost by dividing the amount of the change in the cost item between two years by the amount of the change in sales for those two years. The analyst can then multiply the variable cost percent age times sales to determine the total variable cost. Subtracting the variable cost yields the fixed cost for that paticular item. Follow this procechure to determine the cost structure for costs of goods sold for Bargains, Inc.
b. Bargains, Inc. projects salesto grow at the following percentagesin future years: 2011, 9 percent, 2012, 11 percent; 2013, 15 percent. Using this information project sales, cost of goods sold and gross profit for Bargains, Inc. for 2011 to 2013.