Salesa CGSb Gross profit FOC Depreciation EBIT Interest Earnings before taxes EXHIBIT 1 Income Statement of the Copier Operation $15,000,000 9,000,000 a10,000 copiers at $1,500 a unit. 6,000,000 5,500,000 600,000 (100,000) 750,000 (850,000) bCost of goods sold. Includes direct labor and material costs. $900 per copier. Fixed operating costs. Doesn't include depreciation. Does include items such as supervisory salaries, marketing expenses, secretarial support, property taxes, and corporate fees.