Please answer the first four questions (1-4):

Assignment (2) - INCOME STATEMENT Look at the financial statements excerpted from the Foundation FastTrack and answer the following questions, explaining the reasons and justification for your answers. 1) Look at the income statement survey. Notice that Andrews has sales of 74,492,100 and Erie have sales revenue worth $65.2 million. However, Andrews only made a profit of $ 1.1 million but Erie had a profit of $8 million. a. Why is Andrews selling well but making such low profits? (4 points) b. What could Andrews have done differently to achieve higher profits? (4 points) 2) Look at the income statement survey. a. Calculate the contribution margin and the net profit margin (return on sales) for Andrews and Erie. Compare the two companies and analyze the differences in their financial management based on your calculations. (12 points) b. Calculate SGA as a percentage of sales revenue for both Andrews and Erie and analyze the differences in their financial management. (6 points) 3) Why did Andrews take an emergency loan? (4 points) 4) Calculate the ROS for the six companies. Which company is the most profitable? (8 points) 5) Calculate the contribution margins of the 6 companies. Which company has the best contribution margin? Is this good enough? Why or why not? (10 points) 6) Look at the production page of the FastTrack below and explain why the company with the highest contribution margin in question 5 was able to achieve this. (6 points) 7) Calculate the Net Margins for the 6 companies. Which company has the highest Net margin? Is this good enough? Why or why not? (10 points) Total points (64) Income Statement Survey Sales Variable Costs(Labor, Material, Carry) Depreciation SGA(R&D,Promo, Sales, Admin) Other(Fees, Writeoffs, TQM, Bonuses) EBIT Interest(Short term, Long term) Taxes Profit Sharing Net Profit Andrews $74,492 $54,070 $2,617 $11,518 ($9) $6,297 $4,561 $607 $23 $1,106 Baldwin $84,177 $57,655 $3,440 $7,895 $122 $15,064 $3,106 $4.185 $155 $7,618 Chester $65,961 $39,659 $3,647 $7,320 $99 $15,235 $3,025 $4.273 $159 $7,778 Digby $85,112 $53,212 $3,088 $8,821 $455 $19,536 $3,422 $5.640 $209 $10.264 Erie $65,248 $41,471 $3,100 $5,182 $311 $15,184 $2,588 $4,408 $164 $8,023 Ferris $84,184 $55,709 $1,955 $8,194 $24 $18,303 $1,977 $5,714 $212 $10,400 Production Analysis Units Sold Primary Segment Low High Unit Inven tor 390 347 0 Name Able Alman ANew Revision Date 1/8/2019 3/10/2022 5/28/2022 1.246 Age Pfmn Size Dec. 31 MTBF Coord Coord Price 5.5 21000 7.4 12.0 $32.00 2.4 23000 9.5 10.0 $45.00 0.0 0 0.0 0.0 $0.00 2nd Shift & Over- time 0% 18% 0% Material Labor Cost Cost $12.35 $9.45 $16.79 $10.13 $0.00 $0.00 Contr. Marg 22% 34% 0% Auto mation Next Round 4.0 4.0 4.0 Capacity Next Plant Round Utiliz. 1,105 90% 679 117% 200 0% 769 0 Low Baker Bold 1,706 321 154 4/28/2021 7/2/2021 2.0 19800 1.4 22400 7.7 9.7 13.8 $29.70 9.2 $41.90 $10.76 $8.87 $17.58 $10.11 30% 33% 6.5 4.0 43% 33% 1,150 142% 700 132% High 800 Cake Low Low 1,412 900 259 25 1/6/2022 9/3/2021 4.3 17000 1.2 20000 5.8 8.1 13.4 $23.90 10.4 $35.80 $7.91 $13.49 Cent $4.77 $9.56 43% 37% 45% 100% 7.5 4.5 1.100 144% 650 199% Low Daze Dabble Dust High 1,447 823 0 333 207 0 1/15/2021 8/12/2021 3/10/2022 33 18000 1.3 22000 0.0 0 7.2. 10.5 0.0 13.0 $33.50 9.8 $44.50 0.0 $0.00 $10.30 $8.82 $17.61 $10.47 $0.00 $0.00 39% 36% 0% 32% 42% 0% 60 4.0 5.0 1.100 131% 650 141% 500 0% Eat East Low Low 1,321 1,087 201 0 5/27/2020 1/8/2020 3.0 16500 2.8 16500 6.9 6.2 13.5 $27.10 12.8 $27.10 $8.59 $8.67 $7.59 $8.07 37% 36% 53% 100% 6.0 6.0 850 152% 700 199% Fast Feast High High 1,027 954 145 225 7/20/2021 7/20/2021 1.5 22000 1.2 22000 10.7 10.3 9.0 $42.50 9.5 $42.50 $18.05 $10.09 $17.22 $9.91 33% 35% 100% 83% 4.9 4.9 600 198% 600 182% Assignment (2) - INCOME STATEMENT Look at the financial statements excerpted from the Foundation FastTrack and answer the following questions, explaining the reasons and justification for your answers. 1) Look at the income statement survey. Notice that Andrews has sales of 74,492,100 and Erie have sales revenue worth $65.2 million. However, Andrews only made a profit of $ 1.1 million but Erie had a profit of $8 million. a. Why is Andrews selling well but making such low profits? (4 points) b. What could Andrews have done differently to achieve higher profits? (4 points) 2) Look at the income statement survey. a. Calculate the contribution margin and the net profit margin (return on sales) for Andrews and Erie. Compare the two companies and analyze the differences in their financial management based on your calculations. (12 points) b. Calculate SGA as a percentage of sales revenue for both Andrews and Erie and analyze the differences in their financial management. (6 points) 3) Why did Andrews take an emergency loan? (4 points) 4) Calculate the ROS for the six companies. Which company is the most profitable? (8 points) 5) Calculate the contribution margins of the 6 companies. Which company has the best contribution margin? Is this good enough? Why or why not? (10 points) 6) Look at the production page of the FastTrack below and explain why the company with the highest contribution margin in question 5 was able to achieve this. (6 points) 7) Calculate the Net Margins for the 6 companies. Which company has the highest Net margin? Is this good enough? Why or why not? (10 points) Total points (64) Income Statement Survey Sales Variable Costs(Labor, Material, Carry) Depreciation SGA(R&D,Promo, Sales, Admin) Other(Fees, Writeoffs, TQM, Bonuses) EBIT Interest(Short term, Long term) Taxes Profit Sharing Net Profit Andrews $74,492 $54,070 $2,617 $11,518 ($9) $6,297 $4,561 $607 $23 $1,106 Baldwin $84,177 $57,655 $3,440 $7,895 $122 $15,064 $3,106 $4.185 $155 $7,618 Chester $65,961 $39,659 $3,647 $7,320 $99 $15,235 $3,025 $4.273 $159 $7,778 Digby $85,112 $53,212 $3,088 $8,821 $455 $19,536 $3,422 $5.640 $209 $10.264 Erie $65,248 $41,471 $3,100 $5,182 $311 $15,184 $2,588 $4,408 $164 $8,023 Ferris $84,184 $55,709 $1,955 $8,194 $24 $18,303 $1,977 $5,714 $212 $10,400 Production Analysis Units Sold Primary Segment Low High Unit Inven tor 390 347 0 Name Able Alman ANew Revision Date 1/8/2019 3/10/2022 5/28/2022 1.246 Age Pfmn Size Dec. 31 MTBF Coord Coord Price 5.5 21000 7.4 12.0 $32.00 2.4 23000 9.5 10.0 $45.00 0.0 0 0.0 0.0 $0.00 2nd Shift & Over- time 0% 18% 0% Material Labor Cost Cost $12.35 $9.45 $16.79 $10.13 $0.00 $0.00 Contr. Marg 22% 34% 0% Auto mation Next Round 4.0 4.0 4.0 Capacity Next Plant Round Utiliz. 1,105 90% 679 117% 200 0% 769 0 Low Baker Bold 1,706 321 154 4/28/2021 7/2/2021 2.0 19800 1.4 22400 7.7 9.7 13.8 $29.70 9.2 $41.90 $10.76 $8.87 $17.58 $10.11 30% 33% 6.5 4.0 43% 33% 1,150 142% 700 132% High 800 Cake Low Low 1,412 900 259 25 1/6/2022 9/3/2021 4.3 17000 1.2 20000 5.8 8.1 13.4 $23.90 10.4 $35.80 $7.91 $13.49 Cent $4.77 $9.56 43% 37% 45% 100% 7.5 4.5 1.100 144% 650 199% Low Daze Dabble Dust High 1,447 823 0 333 207 0 1/15/2021 8/12/2021 3/10/2022 33 18000 1.3 22000 0.0 0 7.2. 10.5 0.0 13.0 $33.50 9.8 $44.50 0.0 $0.00 $10.30 $8.82 $17.61 $10.47 $0.00 $0.00 39% 36% 0% 32% 42% 0% 60 4.0 5.0 1.100 131% 650 141% 500 0% Eat East Low Low 1,321 1,087 201 0 5/27/2020 1/8/2020 3.0 16500 2.8 16500 6.9 6.2 13.5 $27.10 12.8 $27.10 $8.59 $8.67 $7.59 $8.07 37% 36% 53% 100% 6.0 6.0 850 152% 700 199% Fast Feast High High 1,027 954 145 225 7/20/2021 7/20/2021 1.5 22000 1.2 22000 10.7 10.3 9.0 $42.50 9.5 $42.50 $18.05 $10.09 $17.22 $9.91 33% 35% 100% 83% 4.9 4.9 600 198% 600 182%