Electronic Equipment Venture
Income Statement
Thousands
			2008	2009	2010 (Fsct)
Net Sales			98800	108000	113500
Cost of good sold
Total cost of good sold			68500	80250	85425
Gross Profit			30300	27750	28075
%			31%	26%	25%
Expenses
General & Administrative			3500	5300	5700
Marketing			7500	8500	9000
Operating Expense			9900	10610	11120
Total Expenses			20900	24410	25820
Income Before Taxes			9400	3340	2255
Taxes			3760	1336	902
Net Income			5640	2004	1353
Headcount
Direct			2080	2400	2500
Indirect			320	350	400
Total Headcount			2400	2750	2900
Products			2008				2009				2010 Fcst
		Sales	Margin	%		Sales	Margin	%		Sales	Margin
Electronic Equipment
Television		4000	1000	25%		3500	900	26%		5000	1045
Computers		5000	2400	48%		5200	2300	44%		7600	3300
Medical		2300	1500	65%		3500	2000	57%		4000	1800
Automotive		15000	3200	21%		16000	2800	18%		15400	3000
Electronic Equipment Total		26300	8100	31%		28200	8000	28%		32000	9145
Electronic Equipment Parts
Television		12000	3200	27%		13000	3050	23%		12000	2230
Computers		44500	13000	29%		50000	10500	21%		48000	10500
Medical		6000	3500	58%		7000	3700	53%		7500	3700
Automotive		10000	2500	25%		9800	2500	26%		14000	2500
Electronic Equipment Parts Total		72500	22200	31%		79800	19750	25%		81500	18930
Total		98800	30300	31%		108000	27750	26%		113500	28075

The income statement measures the firm's profitability over a period of time: 1 month, 1 quarter, or 1 year. The statement focuses on the operations of the firm and explains what was produced and sold. In essence, it summarizes revenues generated and the results.

Tony understands that managing profitability involves overseeing 3 interrelated factors: volume, cost, and price. He has given you the job of conducting an in-depth analysis of EEV's operating performance. You will analyze the following factors:

• Sales volume, cost, and price of each specific product
• Each product's contribution to sales in terms of profit
• The relationship between sales and supportive employment

Tony has made it clear that he expects you to initiate a constructive discussion by describing your findings both in narrative form and through an organized numeric presentation.

View the income statement above and then complete the following in your paper:

• Review the sales volume, cost, and price of each specific product.
• Review each product's contribution to sales in terms of profit.
• Describe the relationship between sales and supportive employment.

Provide an Excel spreadsheet that depicts your findings along with your analysis