Q4: The supply chain management team reviewed all the raw material costs and determined if they change the packaging on another product they make, they will be able to save an additional $.04 per unit on the cost of materials by sharing the same packaging. The change will require an additional $3,000 be added to the expansion costs for the packaging equipment upgrade. How much does this change save or cost the company? Should this change be granted?

Exhibit 5 New Project Revenue Production Expenses 1% Raw Materials 3.00% Manufacturing Overhead 3% Maintenance Expense Labor Expense 7.80% Selling General and Admin Total Operating Expense EBITDA Depreciation EBIT Interest Expense EBT Taxes Net Profit Add Depreciation Total Cash Fl NPV IRR Exhibit 5 Flat Flat Calc Flat Units Unit Costs Selling Price $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 57,817,0 $ 48000 0.94 1.77 2009 84,960.00 $ 45,120.00 $ 3,600.00 $ 2,250.00 $ 18,640.00 $ 6,626.88 $ 76,236.88 $ 8,723.12 $ 4.000.00 $ 4,723.12 $ 4,480.82 $ 242.30 $ 96.92 $ 145.38 $ 4,000.00 $ 4,145.38 $ 52000 0.95 1.81 2010 94,120.00 $ 49,400.00 $ 3,708.00 $ 2,317.50 $ 20,233.30 $ 7,341.36 $ 83,000.16 $ 11,119.84 $ 4,000.00 $ 7,119.84 $ 4,480.82 $ 2,639.02 $ 1,055.61 $ 1,583.41 $ 4,000.00 $ 5,583.41 $ 56000 60000 0.96 0.97 1.84 1.88 2011 2012 103,040.00 $ 112,800.00 $ 53,760.00 $ 3,819.24 $ 2,387.03 $ 58,200.00 $ 3,933.82 $ 2,458.64 $ 22,842.40 $ 25,254.60 $ 8,037.12 $ 90,845.79 $ 12,194.22 $ 8,798.40 $ 98,645.45 $ 14,154.55 $ 4,000.00 $ 8.194.22 S 4,000.00 $ 10,154.55 $ 4,480.82 $ 3,713.40 $ 4,480.82 $ 5,673.73 $ 1,485.36 $ 2,228.04 $ 2,269.49 $ 3,404.24 $ 4,000.00 $ 4,000.00 $ 6,228.04 $ 7,404.24 $ 64000 0.98 1.92 2013 122,880.00 $ 62,720.00 $ 4.051.83 $ 2,532.39 $ 28,174.80 $ 9,584.64 $ 107,063.67 $ 15,816.33 $ 4,000.00 $ 11,816.33 $ 4,480.82 $ 7,335.51 $ 2,934.21 $ 4,401.31 $ 4,000.00 $ 8,401.31 $ 68000 68000 68000 68000 68000 1.01 0.99 1 1.02 1.03 1.95 2.07 2.12 1.99 2015 2.03 2016 2017 2018 2014 132,600.00 $ 135,320.00 $ 138,040.00 $ 140,760.00 $ 144,160.00 67,320.00 $ 4,173.39 $ 2,608.37 $ 68,000.00 $ 4,298.59 $ 2,686.62 $ 68,680.00 $ 4,427.55 $ 2,767.22 $ 69,360.00 $ 4,560.37 $ 2,850.23 $ 70,040.00 4,697.18 2,935.74 30,888.50 $ 31,969.60 $ 33,088.50 S 34,246.60 $ 35,445.20 10,342.80 $ 115,333.05 $ 17,266.95 $ 10,554.96 $ 117,509.77 $ 17,810.23 $ 10,767.12 $ 119,730.38 $ 10,979.28 $ 121,996.48 $ 18,763.52 $ 11,244.48 124,362.60 19,797.40 18,309.62 $ 4,000.00 $ 13,266.95 $ 4,000.00 $ 13,810.23 $ 4,000.00 $ 14.309.62 $ 4,000.00 $ 14,763.52 $ 4,000.00 15,797.40 4,480.82 $ 8,786.13 $ 4,480.82 $ 9,329.41 $ 4,480.82 $ 9,828.80 $ 4,480.82 $ 10,282.70 $ 4,480.82 11,316.58 3,514.45 $ 5.271.68 $ 3.731.77 $ 5,597.65 $ 3,931.52 $ 5,897.28 $ 4,113.08 $ 6,169.62 $ 4,526.63 6,789.95 4,000.00 $ 4,000.00 $ 9,597.65 $ 4,000.00 $ 9,897.28 $ 4.000.00 $ 10,169.62 $ 4.000.00 10,789.95 9,271.68 $ Exhibit 5 New Project Revenue Production Expenses 1% Raw Materials 3.00% Manufacturing Overhead 3% Maintenance Expense Labor Expense 7.80% Selling General and Admin Total Operating Expense EBITDA Depreciation EBIT Interest Expense EBT Taxes Net Profit Add Depreciation Total Cash Fl NPV IRR Exhibit 5 Flat Flat Calc Flat Units Unit Costs Selling Price $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 57,817,0 $ 48000 0.94 1.77 2009 84,960.00 $ 45,120.00 $ 3,600.00 $ 2,250.00 $ 18,640.00 $ 6,626.88 $ 76,236.88 $ 8,723.12 $ 4.000.00 $ 4,723.12 $ 4,480.82 $ 242.30 $ 96.92 $ 145.38 $ 4,000.00 $ 4,145.38 $ 52000 0.95 1.81 2010 94,120.00 $ 49,400.00 $ 3,708.00 $ 2,317.50 $ 20,233.30 $ 7,341.36 $ 83,000.16 $ 11,119.84 $ 4,000.00 $ 7,119.84 $ 4,480.82 $ 2,639.02 $ 1,055.61 $ 1,583.41 $ 4,000.00 $ 5,583.41 $ 56000 60000 0.96 0.97 1.84 1.88 2011 2012 103,040.00 $ 112,800.00 $ 53,760.00 $ 3,819.24 $ 2,387.03 $ 58,200.00 $ 3,933.82 $ 2,458.64 $ 22,842.40 $ 25,254.60 $ 8,037.12 $ 90,845.79 $ 12,194.22 $ 8,798.40 $ 98,645.45 $ 14,154.55 $ 4,000.00 $ 8.194.22 S 4,000.00 $ 10,154.55 $ 4,480.82 $ 3,713.40 $ 4,480.82 $ 5,673.73 $ 1,485.36 $ 2,228.04 $ 2,269.49 $ 3,404.24 $ 4,000.00 $ 4,000.00 $ 6,228.04 $ 7,404.24 $ 64000 0.98 1.92 2013 122,880.00 $ 62,720.00 $ 4.051.83 $ 2,532.39 $ 28,174.80 $ 9,584.64 $ 107,063.67 $ 15,816.33 $ 4,000.00 $ 11,816.33 $ 4,480.82 $ 7,335.51 $ 2,934.21 $ 4,401.31 $ 4,000.00 $ 8,401.31 $ 68000 68000 68000 68000 68000 1.01 0.99 1 1.02 1.03 1.95 2.07 2.12 1.99 2015 2.03 2016 2017 2018 2014 132,600.00 $ 135,320.00 $ 138,040.00 $ 140,760.00 $ 144,160.00 67,320.00 $ 4,173.39 $ 2,608.37 $ 68,000.00 $ 4,298.59 $ 2,686.62 $ 68,680.00 $ 4,427.55 $ 2,767.22 $ 69,360.00 $ 4,560.37 $ 2,850.23 $ 70,040.00 4,697.18 2,935.74 30,888.50 $ 31,969.60 $ 33,088.50 S 34,246.60 $ 35,445.20 10,342.80 $ 115,333.05 $ 17,266.95 $ 10,554.96 $ 117,509.77 $ 17,810.23 $ 10,767.12 $ 119,730.38 $ 10,979.28 $ 121,996.48 $ 18,763.52 $ 11,244.48 124,362.60 19,797.40 18,309.62 $ 4,000.00 $ 13,266.95 $ 4,000.00 $ 13,810.23 $ 4,000.00 $ 14.309.62 $ 4,000.00 $ 14,763.52 $ 4,000.00 15,797.40 4,480.82 $ 8,786.13 $ 4,480.82 $ 9,329.41 $ 4,480.82 $ 9,828.80 $ 4,480.82 $ 10,282.70 $ 4,480.82 11,316.58 3,514.45 $ 5.271.68 $ 3.731.77 $ 5,597.65 $ 3,931.52 $ 5,897.28 $ 4,113.08 $ 6,169.62 $ 4,526.63 6,789.95 4,000.00 $ 4,000.00 $ 9,597.65 $ 4,000.00 $ 9,897.28 $ 4.000.00 $ 10,169.62 $ 4.000.00 10,789.95 9,271.68 $