Page 2 UVA-C-2402 Exhibit 1 JW Sports Supplies (A) Income Statement for Most Recent Year of Operation Revenues $1,837,200 Cost of goods sold (COGS) 1,274,000 Gross margin 563,200 Selling, general, and administrative expenses (SG&A) 345,000 Profit before tax $ 218,200 Source: All exhibits created by author. Exhibit 2 JW Sports Supplies (A) Production /Sales Levels and Costs by Month Actual units Actual cost Jan 1,000 $ 100,000 Feb 1,100 $ 106,000 permissions@dardenbusinesspublishing.com for permissions Mar 1,175 $ 105,000 Please do not copy or redistribute. Additional materials may be available at store.darden. virginia.edu. Contact Apr 1,250 $ 120,000 May 1,410 $ 128,000 Jun 1,520 $ 132,000 Jul 1,600 $ 135,000 Aug 1,710 $ 140,000 Sep 1,800 $ 148,000 Oct 1,970 $ 150,000 Nov 970 $ 150,000 Dec 1,970 $ 120,000 Jan 1,510 $ 140,000 Feb 1,650 $ 130,000 Mar 1,450 $ 115,000 Apr 1,200 $ 112,000 May 1,210 $ 130,000 Jun 1,900 $ 154,000 Jul 1,890 $ 162,000 Aug 1,200 $ 112,000 Sep 1,210 $ 130,000 Oct 1,600 $ 143,000 Nov 1,700 $ 148,000 Dec 1,850 $ 143,000Please do not copy or redistribute. Additional materials may be available at store.darden.virginia.edu. Contact permissions@dardenbusinesspublishing.com for permissions. Page 3 UVAC2402 Exhibit 3 JW Sports Supplies (A) Description of Costs Cost Description Direct material Cost of material used to make the gym bags that could easily be traced to each bag. This included the cost of the material, zippers, shoulder strap, and handles. Direct labor Cost of paying workers who make the gym bags. Rent Amount paid to lease the facility where the gym bags were made. Depreciation Cost of the equipment used in making the gym bags. Electricity Cost obtained from the monthly utility bill for power to prov1de lighting Other manufacturing and 0 crate machinery. Cost of materials not directly traceable to each bag (e.g., thread and glue); labor not working directly on gym bag assembly (e.g., maintenance and janitorial costs, setup of equipment, material handling, supplies). Selling Fixed salary paid to sales representative. Sales commission Amount paid to sales representative for each gym bag sold. Administrative General and administrative costs (e.g., purchasing, accounting, payroll). Exhibit 4 JW Sports Supplies (A) Monthly Costs at Different Volume Levels Units produced and sold Cost category 1,200 1,900 Direct material 313 36,000 313 57,000 Direct labor 18,000 28,500 Rent 5,000 5,000 Depreciation 4,000 4,000 Electricity 4,400 5,800 Other manufacturing 19,600 21,700 Selling 8,000 8,000 Sales commission 12,000 19,000 Administrative 5,000 5,000