Rockness continued, "Here, look at this report. This is last month's report on the cola bottling line. What do you see here?" He handed copies of the following report to the people assembled in his office. Monthly Report on Cola Bottling Line Sales Less: Diet $262,500 Regular $155,000 Cherry $51,000 Grape $17,225 Total $485,725 Materials Direct labor Fringe benefits on direct labor Indirect costs (@260% of direct labor) Gross margin Return on sales (see note [a]) Volume 125,000 82,400 28,400 11,625 247,425 26,500 13,500 4,000 750 44,750 10,600 5,400 1,600 68,900 35,100 10,400 1,950 $ 31,500 $ 18,600 12.0% 105,000 12.0% 62,000 Unit price $ Unit cost $ 2.50 2.20 $ 2.50 $ 2.55 $ 2.65 $ 6,600 12.9% 20,000 $ 2,600 15.1% 6,500 17,900 116,350 $ 59,300 12.2% 193,500 $ 2.51 300 $ 2.20 $ 2.22 $ 2.25 $ 2.20 a Return on sales before considering selling general and administrative expenses Indirect labor Fringe benefits on indirect labor Information technology Machinery depreciation Machinery maintenance Energy Total $ 44,750 17,900 30,900 13,500 6,200 3,100 $116,350