Exhibit 1 Wilkerson Company: Operating Results (March 2000) Sales Direct Labor Expense $2,152,500 100% 271,250 Direct Materials Expense 458,000 Manufacturing overhead Machine-related expenses $336,000 Setup labor 40,000 Receiving and production control 180,000 Engineering 100,000 Packaging and shipping 150,000 Total Manufacturing Overhead Gross Margin General, Selling & Admin. Expense Operating Income (pre-tax) 806,000 $617,250 559,650 29% $ 57,600 3% Exhibit 2 Product Profitability Analysis (March 2000) Valves Pumps Flow Controllers Direct labor cost $10.00 $12.50 $10.00 Direct material cost 16.00 20.00 22.00 Manufacturing overhead (@300%) 30.00 37.50 30.00 Standard unit costs $56.00 $70.00 $62.00 Target selling price $86.15 $107.69 $95.38 Planned gross margin (%) 35% 35% 35% Actual selling price $86.00 $87.00 $105.00 Actual gross margin (%) 34.9% 19.5% 41.0% Exhibit 3 Product Data Product Lines Materials per unit Materials cost per unit Direct labor per unit (including employee benefits) Direct labor $/unit $25/DL hour Machine hours per unit Exhibit 4 Valves 4 components Pumps 5 components 2 @ $2-$4 2 @ 6 = 12 3 @ $2 = $6 2 @ 7 = 14 5 @ 2: Flow Controllers 10 components 4 @ $1 = $ 4 10 1 @ 8 = 8 $16 $20 $22 .40 DL hours .50 DL hours .40 DL hours $10 $12.50 0.5 0.5 $10.00 0.3 Monthly Production and Operating Statistics (March 2000) Valves Pumps Flow Controllers Total Production (units) 7,500 12,500 4,000 24,000 Machine hours 3,750 6,250 1,200 11,200 Production runs 10 50 100 160 Number of shipments 10 70 220 300 Hours of engineering work 250 375 625 1,250 4