Table 1. Pro Forma Estimates Final Assembly Only Fully integrated manufacturing Total investment $250 mil $350 mil Sales $300 mil $300 mil Pre-tax Profits (Pre-tax margin X sales) $45 mil $135 mil Pre-tax Return on Investment (pre-tax profit / investment) 18% 39% After tax Profits (assuming 35% tax rate) $29 mil $88 mil After tax Return on Investment (after tax profit / investment) 12% 25% Cost structure on a percentage basis Sales 100% 100% Subassemblies purchased from Boeing (final assembly option) 50 Secondary components used for integrating subassemblies 5 5 Primary components used for manufacturing subassemblies 20 Labor 10 20 Royalty 0 0 Import tariffs on subassemblies from Boeing 10 0 Transcontinental transportation of subassemblies 5 0 Selling, administration Transcontinental transportation of subassemblies 5 0 Selling, administration & overhead 5 10 Pre-tax profit margin 15% 45% find prefered business plan