1. Calculate the overhead allocation rate for each of the years 2008-2014 and answer the following questions:

2. Estimate the impact of discontinuing?any one product line area on net operating income. Assume 2015 sales and direct material and labor costs remain unchanged from 2014 except for elimination of sales and avoidable costs (direct and indirect) related to the product line area of your choice. Show your work.

Assume all information remains the same from 2014 to 2015, except for removal of the product line you identified. Recalculate overhead allocation rate.

Exhibit 1 Employment and Properties 2014 2013 2012 2011 2010 2009 2008 Employees (total in thousands) 164 161 155 143 110 117 167 Contract & temporary 37 44 37 39 10 12 20 Hourly 101 91 93 80 78 80 114 Engineering 20 19 18 17 12 13 17 Other salaried 6 7 7 7 10 12 16 Manufacturing facilities 129 126 126 114 97 135 175 Sales offices & customer centers 96 94 90 82 74 91 136 Technical centers 15 15 15 15 14 15 16 Exhibit 2 Delhi Components Statement of Operations (in billions) 2014 2013 2012 2011 2010 2009 2008 Sales 16.69 15.75 16.30 14.03 11.14 17.63 22.03 Electronics & safety 2.83 2.73 2.93 2.72 2.56 3.34 4.04 Powertrain systems 4.42 4.66 4.97 4.09 2.91 3.67 4.66 Electrical architecture 7.97 6.82 6.64 5.62 4.30 4.65 4.97 Thermal systems 1.47 1.54 1.76 1.60 1.37 2.12 2.41 Automotive holdings group 3.85 5.95 Direct costs 7.48 7.24 7.44 6.78 6.12 12.12 16.41 Overhead costs 7.55 7.19 7.11 6.41 5.98 7.43 9.14 Net operating income 1.66 1.32 1.75 0.84 -0.96 -1.92 -3.52