Profit & Loss Statement

Gross Sales 105905

Cash Discount 1567

Net Sales 104338

Cost of Manufacturing 65251

Manufacturing Profit 39087

Less: Selling Expense 18383
General Administration 6534
Depreciation 13591 38508

Operating Profit 579

Other Income 205

Net Profit Before Interest 784

Less: Interest 1472

Net Loss 688

 Product 101 Product 102
Rent 1872 0.88 1570 1.53
Property Taxes 621 0.29 503 0.49
Property Insurance 524 0.25 405 0.39
Compensation Insurance 836 0.39 439 0.42
Direct Labour 12937 6.06 6107 5.92
Indirect Labour 4413 2.07 2124 2.06
Power 220 0.11 251 0.24
Light & Heat 158 0.07 130 0.12
Building Service 109 0.05 82 0.08
Materials 7641 3.59 4716 4.58
Supplies 525 0.25 485 0.46
Repairs 184 0.08 150 0.15
Total 30040 14.09 16962 16.44

Selling Expense 9100 4.27 4582 4.44

General Administrative 3451 1.62 1300 1.26
Depreciation 5659 2.65 4274 4.16
Interest 524 0.25 409 0.39
Total cost 48774 22.88 27527 26.69
Less: Other Income 101 0.04 53 0.05
48673 22.84 $27,474 26.64

Sales(Net) 51672 24.24 25996 25.23

Profit (Loss) $ 2,999.00 1.4 $ (1,478.00) $1.41
Unit Sales 2132191 1029654
Quoted Selling price Per Unit 24.5 25.8
Cash Discount Taken 1.08% 2.14%
 Product 103 Total Direct Indirect Allocation Base
1882 1.9 5324 x Cubic space
401 0.4 1525 x Area
534 0.53 1463 x Value of Equipment
458 0.46 1733 x Direct Labour
6879 6.97 25923 x
2309 2.33 8846 x Direct Labour
302 0.31 773 x Machine Horsepower
106 0.1 394 x Area
75 0.08 266 x Area
4851 4.91 17208 x
350 0.36 1360 x
104 0.1 438 x
18249 18.45 65251

4701 4.76 18383 x Value of sales

1783 1.8 6534 x Value of sales
3658 3.7 13591 x Value of equipment
539 0.53 1472 x Value of equipment
28930 29.24 105231
51 0.05 205 x Vaue of Sales
$28,879 $29.19 105026

26670 27.03 104338

$ (2,209.00) $ (2.16) $ (688.00)
986974 4148819
27.5
1.74% 1.48%
 Product 101 Product 102
Standard per 100lbs Total at Standard Standard per 100lbs
Rent 0.88 877 1.53
Property Taxes 0.29 289 0.49
Property Insurance 0.25 249 0.39
Compensation Insurance 0.39 389 0.42
Direct Labour 6.06 6041 5.92
Indirect Labour 2.07 2063 2.06
Power 0.11 109 0.24
Light & Heat 0.07 70 0.12
Building Service 0.05 50 0.08
Materials 3.59 3579 4.58
Supplies 0.25 239 0.46
Repairs 0.08 79 0.15
Total 14.09 14034 16.44

Selling Expense 4.27 4257 4.44

General Administrative 1.62 1615 1.26
Depreciation 2.65 2642 4.16
Interest 0.25 249 0.39
Total cost 22.88 22797 26.69
Less: Other Income 0.04 40 0.05
22.84 22757 0 26.64
Actual Sales (net) 24.24 24164 25.23
Profit 1.4 1407 0 -1.41
Unit Sales 996859 712102
Product 102 Product 103 Total Standard Total Actual
Total at Standard Standard per 100lbs Total at Standard
1090 1.9 952 2919 2660
349 0.4 201 839 770
278 0.53 266 793 732
299 0.46 231 919 917
4216 6.97 3496 13751 13820
1467 2.33 1168 4698 4485
171 0.31 155 435 432
85 0.1 50 205 200
57 0.08 40 147 107
3261 4.91 2461 9301 9282
328 0.36 180 747 750
107 0.1 50 236 251
11708 18.45 9248 34990 34406

3162 4.76 2386 9805 9830

897 1.8 902 3414 3289
2962 3.7 1855 7459 6817
278 0.53 266 793 730
19007 29.24 14657 56461 55072
36 0.05 25 101 110
18971 0 29.19 14632 0 56360 54962
17961 27.03 13550 55675 55675
-1010 0 -2.16 -1082 0 -685 713
501276
 Variances
+=Favourable
-=Unfavorable

259.00
69.00
61.00
2.00
(69.00)
213.00
3.00
5.00
40.00
19.00
(3.00)
(15.00)
584.00
-
(25.00)
125.00
642.00
63.00
1,389.00
(9.00)
0 1398

0 -1398
 Superior Manufacturing Company
Variable and Fixed Costs Per Unit
Product 101
2004-2005 2006
Variable Cost
Compensation Insurance 0.39 0.39
Direct Labor 6.06 6.06
Power 0.11 0.11
Materials 3.59 3.41
Supplies 0.25 0.24
Repairs 0.08 0.08
Total Variable Cost $10.48 $10.29

Fixed Cost
Rent 0.88 0.88
Property Tax 0.29 0.29
Property Insurance 0.25 0.25
Indirect Labor 2.07 2.07
Light & Heat 0.07 0.07
Building Service 0.05 0.05
Selling Expense 4.27 4.27
General Administrative 1.62 1.62
Depreciation 2.65 2.65
Interest 0.25 0.25
Other Income 0.04 0.04
Total Fixed Cost $12.44 $12.44
 Superior Manufacturing Company
Breakeven Volume
Product 101
2004 & 2005
Price Per Unit Variable Cost Contribution Margin
$24.50 10.48 $14.02

Fixed Cost Contribution Margin Breakeven Volume

12.44 14.02 $887,303.85

2006
Price Per Unit Variable Cost Contribution Margin
$24.50 10.29 $14.21

Fixed Cost Contribution Margin Breakeven Volume

12.44 14.21 875439.831104856

2006
Price Per Unit Variable Cost Contribution Margin
$22.50 10.29 $12.21

Fixed Cost Contribution Margin Breakeven Volume

12.44 12.21 1018837.01883702
 Superior Manufacturing Company
Compare Prices
January 1, 2006 - June 30, 2006
Selling Price of $24.50 Selling Price of $22.50
Expected Unit Sales 750,000.00 1,000,000.00
Breakeven $875,439.83 $1,018,837.02
Net Gain/Loss -125,439.83 -18,837.02
Save $106,602.81

Superior Manufacturing Company

Comparing Contribution Margins
Product 101
Price Per Unit Variable Cost Contribution Margin
$24.50 10.48 $14.02
Product 102
Price Per Unit Variable Cost Contribution Margin
$25.80 11.77 $14.03
Product 103
Price Per Unit Variable Cost Contribution Margin
$27.50 13.11 $14.39
 Superior Manufacturing Company
Income Statement Ending December 31, 2004
Drop Product 103
Gross Sales 105905
Cash Discount 1567
Net Sales 104338
Less Profit from Product 103 -26,670
Cost of Manufacturing 65251
Add Variable Cost of Product 103 12944
Manufacturing Profit 25361
Less: Selling Expense 18383
General Administration 6534
Depreciation 13591 38508

Operating Profit -13,147

Other Income 205
Net Profit before Interest -12,942
Less: Interest 1472
Net Loss ($14,414.00)