2023 Income Statement

(Product Name:)	Don	Drum	Dart	Deal	Na	Na	Na	Na	2023 Total	Common Size
Sales	$32,903	$32,915	$43,437	$45,782	$0	$0	$0	$0	$155,037	100.0%
Variable Costs:
Direct Labor	$3,540	$3,409	$8,439	$7,691	$0	$0	$0	$0	$23,079	14.9%
Direct Material	$14,776	$15,099	$17,193	$17,806	$0	$0	$0	$0	$64,874	41.8%
Inventory Carry	$157	$134	$376	$398	$0	$0	$0	$0	$1,064	0.7%
Total Variable	$18,473	$18,642	$26,008	$25,894	$0	$0	$0	$0	$89,017	57.4%
Contribution Margin	$14,429	$14,273	$17,429	$19,888	$0	$0	$0	$0	$66,020	42.6%
Period Costs:
Depreciation	$5,057	$5,824	$3,293	$3,927	$0	$0	$0	$0	$18,101	11.7%
SG&A: R&D	$331	$331	$966	$966	$0	$0	$0	$0	$2,594	1.7%
Promotions	$1,300	$1,300	$1,300	$1,300	$0	$0	$0	$0	$5,200	3.4%
Sales	$1,600	$1,600	$1,400	$1,400	$0	$0	$0	$0	$6,000	3.9%
Admin	$474	$474	$625	$659	$0	$0	$0	$0	$2,231	1.4%
Total Period	$8,761	$9,528	$7,585	$8,252	$0	$0	$0	$0	$34,126	22.0%
Net Margin	$5,668	$4,745	$9,844	$11,636	$0	$0	$0	$0	$31,894	20.6%

Definitions: Sales: Unit sales times list price. Direct Labor: Labor costs incurred to produce the product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D department expenditures for each product. Admin: Administration overhead is estimated at 1.5% of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for each product. Other: Charges not included in other categories such as Fees, Write Offs, and TQM. The fees include money paid to investment bankers and brokerage firms to issue new stocks or bonds plus consulting fees your instructor might assess. Write-offs include the loss you might experience when you sell capacity or liquidate inventory as the result of eliminating a production line. If the amount appears as a negative amount, then you actually made money on the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term Interest: Interest expense based on last year's current debt, including short term debt, long term notes that have become due, and emergency loans. Long Term Interest: Interest paid on outstanding bonds. Taxes: Income tax based upon a 35% tax rate. Profit Sharing: Profits shared with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing.

Other	$4,700	3.0%
EBIT	$27,193	17.5%
Short Term Interest	$3,746	2.4%
LongTerm Interest	$13,015	8.4%
Taxes	$3,651	2.4%
Profit Sharing	$136	0.1%
Net Profit	$6,645	4.3%

In the Month of March, Digby received orders of 183 units at a price of $15.00 for their product Don, and in April receives an order for 46 units of their product Don at $15.00. Digby uses the accrual method of accounting and offers 30 day credit terms. Digby delivers 0 units in March, 183 units in April and 46 units in May. They received payment for 183 units in April, and payment for 46 units in May. How much revenue is recognized on the March income statement from this order? How much in the April Income statement? (Answer in thousands)

Select: 1

	0, $2,745
	$1,144 , $1,144
	$2,745 , $686
	$3,431 , 0