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