Of Digby Corporation's products, which earned the highest Net Margin as a percentage of its sales? Select: 1 Save Daft OOOO Deal Drum Don (Product Name:) Sales Don $58,809 Drum $42,258 Daft $46,750 Deal $52,195 Na $0 Na $0 Na $0 Na $0 2022 Common Total Size $200,012 100.0% Variable Costs: Direct Labor Direct Material Inventory Carry Total Variable $13,745 $22,511 $0 $36,256 $8,585 $18,098 $416 $27,100 $9,388 $17,853 $776 $28,017 $10,444 $20,666 $978 $32,089 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $42.163 $79,129 $2,171 $123,462 21.1% 39.6% 1.1% 61.7% $20,106 $0 $0 $0 $22,553 $18,733 $0 Contribution Margin $15,158 $76,550 38.3% Period Costs: Depreciation SG&A: R&D Promotions Sales Admin Total Period $2,911 $858 $1,350 $1,000 $430 $6,549 $1,813 $655 $1,350 $1,000 $309 $5,128 $2,607 $510 $1,350 $900 $342 $5,708 $2.833 $571 $1,350 $900 $382 $6,036 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $10,164 $2,595 $5,400 $3,800 $1,462 $23,421 5.1% 1.3% 2.7% 1.9% 0.7% 11.7% Net Margin $16,004 $0 26.6% $10,030 $14,071 $53,129 $13,024 $0 $0 $0 3.4% 23.2% 1.2% 2.2% 6.9% 0.3% 12.6% Definitions: Sales: Unit sales times list price. Direct Labor. Labor costs incurred to produce the Other $6,805 product that was sold. Inventory Carry Cost: the cost to carry unsold goods in inventory. EBIT $46,324 Depreciation: Calculated on straight-line 15-year depreciation of plant value. R&D Costs: R&D $2,340 department expenditures for each product. Admin: Administration overhead is estimated at 1.5% Short Term Interest $4,367 of sales. Promotions: The promotion budget for each product. Sales: The sales force budget for Long Term Interest Taxes $13,866 each product. Other: Charges not included in other categories such as Fees, Write Offs, and Profit Sharing $515 TOM. 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 Net Profit $25,236 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 Variable Margins the liquidation of capacity or inventory. EBIT: Earnings Before Interest and Taxes. Short Term 2008 Digby Interest: Interest expense based on last year's current debt, including short term debt, long term 40.0% 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 30.0% with employees under the labor contract. Net Profit: EBIT minus interest, taxes, and profit sharing 20.0% 10.0% 0.0%