2025 Income Statement Product Name Beetle Bill Boat Sales $64,229 $53,865 $50,830 Best Na Na Na Na Total Common Size $76,853 $0 $0 $0 $0 $245,776 100% Variable Costs: Direct Labor $12,573 $10,499 $8,494 $13,765 SO $0 $0 $0 $45,331 18.4% Direct Material $24,269 $21,751 $18,320 $28,541 $0 $0 $0 $0 $92,882 37.8% Inventory Carry $323 So $611 $247 $0 $0 $0 $0 $1,181 0.5% Total Variable $37,165 $32,250 $27,425 $42,554 $0 $0 $0 $0 $139,393 56.7% Contribution Margin $27,064 $21,614 $23,405 $34,299 $0 $0 SO $0 $106,383 43.3% Period Costs: Depreciation $2,571 $1,813 $2,380 $2,493 $0 $0 $0 $0 $9,257 3.8% R&D $710 $645 $623 $645 $0 $0 $0 $0 $2,622 1.1% Promotions $1,400 $1,400 $1,400 $1,400 $0 $0 $0 $0 $5,600 2.3% Sales $1,100 $1,000 $1,000 $1,000 $0 $0 SO $0 $4,100 1.7% Admin $469 $393 $371 $561 $0 $0 $0 $0 $1,793 0.7% Total Period $6,249 $5,251 $5,774 $6,099 $0 $0 $0 $0 $23,373 9.5% Net Margin $20,816 $16,363 $17,631 $28,200 $0 $0 $83,010 33.8% 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 Other EBIT Short Term Interest Long Term Interest Taxes Profit Sharing Net Profit $6,155 2.5% $76,855 31.3% $2,719 1.1% $3,189 1.3% $24,831 10.1% $922 0.4% $45,193 18.4%