made a report on product offerings, marketing, operations, and finance. Discuss what went well (and why) and what went wrong and why the management team should be kept in place.

2025 Income Statement

(Product Name:)	Able	Acre	Adam	Aft	Agape	NA	NA	NA	2025 Total	Common Size
Sales	$24,388	$19,245	$11,593	$20,297	$26,300	$0	$0	$0	$101,822	100.0%
Variable Costs:
Direct Labor	$7,354	$8,794	$2,839	$6,798	$7,368	$0	$0	$0	$33,152	32.6%
Direct Material	$8,502	$5,298	$4,118	$8,169	$9,685	$0	$0	$0	$35,773	35.1%
Inventory Carry	$1,771	$1,760	$3,161	$1,123	$220	$0	$0	$0	$8,036	7.9%
Total Variable	$17,627	$15,852	$10,118	$16,091	$17,273	$0	$0	$0	$76,961	75.6%
Contribution Margin	$6,761	$3,393	$1,475	$4,205	$9,026	$0	$0	$0	$24,861	24.4%
Period Costs:
Depreciation	$4,564	$3,550	$1,085	$1,362	$722	$0	$0	$0	$11,282	11.1%
SG&A: R&D	$0	$0	$122	$0	$0	$0	$0	$0	$122	0.1%
Promotions	$900	$900	$900	$900	$900	$0	$0	$0	$4,500	4.4%
Sales	$1,000	$1,000	$950	$900	$1,000	$0	$0	$0	$4,850	4.8%
Admin	$445	$351	$212	$370	$480	$0	$0	$0	$1,858	1.8%
Total Period	$6,909	$5,801	$3,268	$3,532	$3,102	$0	$0	$0	$22,612	22.2%
Net Margin	($147)	($2,408)	($1,793)	$673	$5,924	$0	$0	$0	$2,249	2.2%

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	$0	0.0%
EBIT	$2,249	2.2%
Short Term Interest	$14,928	14.7%
LongTerm Interest	$6,945	6.8%
Taxes	($6,868)	-6.7%
Profit Sharing	$0	0.0%
Net Profit	($12,755)	-12.5%