$1.$ What were the Operating Margins, Gross Profits, Profit Margins by product line for oak, cherry, and walnut?

$2.$ Assume equal allocation of all non$-$lumber expenses for each desk $($hardware$,$salary$,$ benefit, utility, depreciation, etc$).$It means that for items like salaries you would divide them equally among the product lines, none of them 'cost' more than the other for these items.

The Desk Corp

Income Statement

Revenue $8,000,000$

COGS

Lumber $1,900,000$

Hardware $200,000$

Finishing supplies $300,000$

Cost of Goods Sold $2,400,000$

Gross Profit $5,600,000$

Administrative Expenses $100,000$

Salary & Benefits $1,100,000$

Utility Expenses $300,000$

Depreciation $1,933,000$

Total Operating Expenses $3,433,000$

Income From Operations $2,167,000$

Net Income Before Tax $2,167,000$

Corporate Income Tax Expense $650,100$

Net Income $($Loss$)1,516,900$

YEAR $1$

Price Per Desk Q$1$ Volume Q$2$ Volume Q$3$ Volume Q$4$ Volume Y$1$ Volume

Oak Desks $$2,500165265245235910$

Walnut Desks $$3,0003353654054251,530$

Cherry Desks $$3,500115185210205715$

$6158158608653,155$

Historic Revenue

Revenue IRR$/$NPV Analysis Q$1$ Q$2$ Q$3$ Q$4$ Y$1$ Actual Y$1$ Variance

Oak Desks $2,000,000412,500662,500612,500587,5002,275,000275,000$

Walnut Desks $4,000,0001,005,0001,095,0001,215,0001,275,0004,590,000590,000$

Cherry Desks $2,000,000402,500647,500735,000717,5002,502,500502,500$

Total Revenue $$8,000,0001,820,0002,405,0002,562,5002,580,000$ $$9,367,500$ $$1,367,500$

Lumber

Oak $650,000150,000250,000250,000250,000900,000(250,000)$

Walnut $800,000201,000216,832235,922242,857896,611(96,611)$

Cherry $450,00089,444147,159159,783159,444555,831(105,831)$

Total Lumber $$1,900,000440,444613,991645,705652,302$ $$2,352,442$ $$(452,442)$

Hardware

Drawer Slides $40,0009,22512,22512,90012,97547,325(7,325)$

Knobs & Handles $125,00027,67536,67538,70038,925141,975(16,975)$

Electrical & Cable management $35,0007,99510,59511,18011,24541,015(6,015)$

Total Hardware $$200,00044,89559,49562,78063,145$ $$230,315$ $$(30,315)$

All other Expenses

Salary Wages $200,00050,00050,00050,00050,000200,000-$

Hourly Wages $600,000150,000145,000145,000150,000590,00010,000$

Benefit Expenses $300,00075,00073,12573,12575,000296,2503,750$

Total Salary & Benefits $$1,100,000275,000268,125268,125275,000$ $$1,086,250$ $$13,750$

Utility Expenses $300,00068,88091,28096,32096,880353,360(53,360)$

Depreciation $1,933,000483,250483,250483,250483,2501,933,000-$

Total Other Expenses $