Sales Revenue (4?,850 tons) Delivery cost Net Revenue Cost of Sales at standard Production cost variances Total cost of sales Gross Prot Selling, General & Adrnin Business Contribution Interest on working capital Net Contribution Nine Months Ended September 30: 2006 Actual $0005! $ 94,504 14.58% 89,920 59,250 220 59.470 30450 7.600 22350 Exhibit 1 Tri-cities Rubber Division Statement of Net Contribution Sales Revenue third palty to Oslo Less: Delivery cost Net Revenue Cost of Salesat standard Production cost variances Idle capacity cost Total cost of sales Gro s s Pro t Selling, General 82: Admin Business Contribution Interest on working capital Net Contribution (Loss) Nine Months Ended September 30, 2006 Actual ($0003) 35,800 tons @'$1,340 65,872 12,200 tons @ $1,350 16,470 (2,700) 79,642 48,000 tons @ $1,350 64,800 (1,100) 11,3 75 75,075 4,567 3,977 590 1,375 (785) 33,000 tons @$1,850 19,500 tons @ $1,350 52,500 tons @ $1,350 ($0003) 61,050 26,325 (2,600) 84,775 70,875 nfa 6,125 77,000 7,775 3,960 3,815 1,400 2,415