EXHIBIT 1 HANSON MANUFACTURING COMPANY Income Statement For Year Ending December 31, 1986 Gross Sales Cash Discounts
40,690,234.00 622,482.00
Net Sales Cost of Sales
40,067,752.00 25,002,386.00
Gross Margin Less: Selling Expense General an and Ad Administration Ex Expense Depreciation
15,065,366.00 7,058,834.00 2,504,597.00 5,216,410.00
14,779,841.00
Operating Income Other Income
285,525.00 78,113.00
Income before interest Less: Interest Expense
363,638.00 555,719.00
Income (Loss)
(192,081.00)
EXHIBIT 2 ANALYSIS OF PROFIT AND LOSS BY PRODUCT Year Ended December 31, 1986
Product 101 Thousands
Product 102
$/Cwt.
Thousands
$/Cwt.
Rent Property taxes
721.00 240.00
0.3383 0.1125
603.00 192.00
0.5856 0.1862
Property insurance Compensation insurance Direct labor Indirect labor
201.00 317.00 4,964.00 1,693.00
0.0941 0.1486 2.3282 0.7941
153.00 167.00 2,341.00 814.00
0.1486 0.1620 2.2740 0.7903
Power Light and Heat
86.00 57.00
0.0403 0.0269
96.00 49.00
0.0929 0.0472
Building Service Materials
38.00 2,935.00
0.0180 1.3766
30.00 1,809.00
0.0288 1.7572
Supplies
201.00
0.0941
183.00
0.1774
Repairs
68.00
0.0319
57.00
0.0557
Total Selling Expense General administration Depreciation Interest
11,521.00 3,496.00 1,324.00 2,169.00 201.00
5.4036 1.6397 0.6209 1.0172 0.0941
6,494.00 1,758.00 499.00 1,643.00 153.00
6.3059 1.7069 0.4850 1.5955 0.1490
Total Cost Less other income
18,711.00 39.00
8.7755 0.0184
10,547.00 20.00
10.2423 0.0192
Sales (net)
18,672.00 19,847.00
8.7571 9.3084
10,527.00 9,977.00
10.2231 9.6900
Profit (loss)
1,175.00
0.5513
Unit sales (cwt.) Quoted selling price Cash discounts taken, percent of selling price
2,132,191.00 $
9.41 1.08%
(550.00)
(0.5331)
1,029,654.00 $
9.91 2.22%
AN
1.65
0.2049 TOTAL Thousands
Product 103 Thousands
$/Cwt.
718.00 153.00
202.00 172.00 2,640.00 883.00
116.00 39.00
0.1171 0.0392
28.00 1,862.00
0.0288 1.8862
96.00 6,606.00
135.00
0.1363
519.00
39.00
0.0396
164.00
6,987.00 1,805.00 681.00 1,404.00 202.00
7.0787 1.8286 0.6904 1.4223 0.2043
25,002.00 7,059.00 2,504.00 5,216.00 556.00
11,079.00 19.00
11.2243 0.0192
40,337.00 78.00
11,060.00 10,243.00
11.2051 10.3784
40,259.00 40,067.00
0.7273 0.1555
0.2047 0.1747 2.6746 0.8947
(817.00) (0.8267) 986,974.00
$
10.56 1.72%
Product 101 Std/cwt
Total at std
2,042.00 585.00
Rent Property taxes
0.3383 0.1125
337 112
556.00 656.00 9,945.00 3,390.00
Property insurance Compensation insurance Direct labor Indirect labor
0.0941 0.1486 2.3282 0.7941
94 148 2,321 792
Power Light and Heat
0.0403 0.0269
40 27
Building Service Materials
0.0180 1.3766
18 1,372
Supplies
0.0941
94
Repairs
0.0319
32
5.4036 1.6397 0.6209 1.0172 0.0941
5,387 1,635 619 1,014 94
298.00 145.00
(192.00)
Total Production Cost Selling Expense General administration Depreciation Interest
Total Cost Less other income
8.7755 0.0184
8,748 18
8.7571 9.3084
8,730 9,279
0.5513
550
Actual Sales (net) Profit (loss) Unit Sales (cwt.)
996,859
EXHIBIT 4 LYSIS OF PROFIT AND LOSS BY PRODUCT, AT STANDARD Showing Variations from January 1 to June 30,1987
Product 102 Std/cwt
Product 103
Total at std
Std/cwt
Total at std
0.5856 0.1862
417 133
0.7273 0.1555
0.1486 0.1620 2.2740 0.7903
106 115 1,619 563
0.2047 0.1747 2.6746 0.8947
0.0929 0.0472
66 34
0.1171 0.0392
0.0288 1.7572
21 1,251
0.0288 1.8862
0.1774
126
0.1363
0.0557
40
0.0396
6.3059 1.7069 0.4850 1.5955 0.1490
4,490 1,215 345 1,136 106
7.0787 1.8286 0.6904 1.4223 0.2043
3,548 917 346 713 102
10.2423 0.0192
7,294 14
11.2243 0.0192
10.2231 9.6900
7,280 6,900
11.2051 10.3784
(0.5331)
712,102
(380)
(0.8267) 501,276
Total Std (Thousands)
365 78
1,119 323
1,021 307
302 351 5,281 1,803
278 348 5,308 1,721
59 20
165 80
170 83
14 946
53 3,569
50 3,544
68
288
288
20
91
88
13,425 3,767 1,310 2,863 302
13,206 3,706 1,378 2,686 290
5,626 10
21,668 42
21,266 42
5,617 5,202
21,626 21,382
21,224 21,382
103 88 1,341 448
(414)
Total Actual (Thousands)
(244)
158
Variances 98 16
F F
24 3 (27) 82
F F U F
(5) U (3) U 3 25
F F
0 3 219 61 (68) 177 12
F F F U F F
402 F (0) 402 F (0) (402) U
Less: Variable Costs/unit
Product 101 Product 102 Product 103 9.41 9.91 10.56 (4.02) (4.52) (5.03)
CM/Unit
Selling Price/unit
5.39 -
Less: Avoidable FC Segment Margin
Less: Allocated FC
Net Income (Loss)
5.39 (4.76)
0.63
TOTAL 29.88 (13.57)
5.53 -
16.31 -
5.39 (5.72)
5.53 (6.20)
16.31 (16.67)
(0.33)
(0.66)
(0.36)
5.39 -
1 Assuming product 3 is dropped Allocated fixed cost is shared equally Other Income from Product 103 is shared equallt
CM Less: Allocated Fixed Cost Less: Other Income from 103
Product 1 5,373.37 6,293.76 4.81
Increase (Decrease) in profit
Product 2 3,838.80 5,522.52 4.81
(925.21)
(1,688.53)
Total 9,212.17 11,816.28 9.62 (2,613.74)
If Product 3 is dropped, the decrease due to lost positive segment margin of Product 103 is 2,613.74 2 Assuming Product 3 is not dropped Units sold for product 1 at 9.41 = 750,000 Units sold for product 1 at 8.64 = 1,000,000 Assuming FC allocation from 1986 is the same CM | SP = 9.41 Less: Allocated FC Net Income (Loss)
CM | SP = 8.64 Less: Allocated FC Net Income (Loss)
Product 1 Product 2 Product 3 Total 7,057.50 3,838.80 2,772.81 13,669.11 4,740.86 4,075.43 3,105.81 11,922.10
2,316.64
(236.63)
(333.00)
1,747.01
Product 1 Product 2 Product 3 Total 4,620.30 3,838.80 2,772.81 11,231.91 4,740.86 4,075.43 3,105.81 11,922.10
(120.56)
(236.63)
(333.00)
(690.19)
illion'
EXHIBIT 2 ANALYSIS OF PROFIT AND LOSS BY PRODUCT Year Ended December 31, 1986
1.65
0.2049
Rent Property taxes Property insurance Compensation insurance Direct labor Indirect labor Power Light and Heat Building Service Materials Supplies Repairs
Product 101 Thousands $/Cwt. 721.00 0.3383 240.00 0.1125 201.00 0.0941 317.00 0.1486 4,964.00 2.3282 1,693.00 0.7941 86.00 0.0403 57.00 0.0269 38.00 0.0180 2,935.00 1.3766 201.00 0.0941 68.00 0.0319
Product 102 Thousands $/Cwt. 603.00 0.5856 192.00 0.1862 153.00 0.1486 167.00 0.1620 2,341.00 2.2740 814.00 0.7903 96.00 0.0929 49.00 0.0472 30.00 0.0288 1,809.00 1.7572 183.00 0.1774 57.00 0.0557
Product 103 Thousands $/Cwt. 718.00 0.7273 153.00 0.1555 202.00 0.2047 172.00 0.1747 2,640.00 2.6746 883.00 0.8947 116.00 0.1171 39.00 0.0392 28.00 0.0288 1,862.00 1.8862 135.00 0.1363 39.00 0.0396
Total Selling Expense General administration Depreciation Interest
11,521.00 3,496.00 1,324.00 2,169.00 201.00
5.4036 1.6397 0.6209 1.0172 0.0941
Total Cost Less other income
18,711.00 39.00
8.7755 0.0184
10,547.00 20.00
Sales (net)
18,672.00 19,847.00
8.7571 9.3084
10,527.00 9,977.00
Profit (loss)
0.5513
Unit sales (cwt.)
2,132,191.00
1,029,654.00
$
9.41
$
9.91
Quoted selling price Cash discounts taken, percent of selling price
1,175.00
1.08%
6,494.00 1,758.00 499.00 1,643.00 153.00
6.3059 1.7069 0.4850 1.5955 0.1490
6,987.00 1,805.00 681.00 1,404.00 202.00
7.0787 1.8286 0.6904 1.4223 0.2043
10.2423 0.0192
11,079.00 19.00
11.2243 0.0192
10.2231 9.6900
11,060.00 10,243.00
11.2051 10.3784
(550.00) (0.5331)
2.22%
(817.00)
(0.8267)
986,974.00 $
10.56 1.72%
EXHIBIT 4 ANALYSIS OF PROFIT AND LOSS BY PRODUCT, AT STANDARD Showing Variations from January 1 to June 30,1987
TOTAL Thousands
2,042.00 585.00 556.00 656.00 9,945.00 3,390.00 298.00 145.00 96.00 6,606.00 519.00 164.00
25,002.00 7,059.00 2,504.00 5,216.00 556.00 40,337.00 78.00
40,259.00 40,067.00 (192.00)
1,021.00 292.50 278.00
Rent Property taxes Property insurance Compensation insurance Direct labor 1,695.00 Indirect labor Power 72.50 Light and Heat 48.00 Building Service Materials Supplies Repairs
3,529.50 1,252.00 2,608.00 278.00
Product 101 Prod Std/cwt Total at std Std/cwt 0.3383 337 0.5856 0.1125 112 0.1862 0.0941 94 0.1486 0.1486 148 0.1620 2.3282 2,321 2.2740 0.7941 792 0.7903 0.0403 40 0.0929 0.0269 27 0.0472 0.0180 18 0.0288 1.3766 1,372 1.7572 0.0941 94 0.1774 0.0319 32 0.0557
Total Production Cost Selling Expense General administration Depreciation Interest
5.4036 1.6397 0.6209 1.0172 0.0941
5,387 1,635 619 1,014 94
6.3059 1.7069 0.4850 1.5955 0.1490
Total Cost Less other income
8.7755 0.0184
8,748 18
10.2423 0.0192
Actual Sales (net)
8.7571 9.3084
8,730 9,279
10.2231 9.6900
0.5513
550
Profit (loss) Unit Sales (cwt.)
996,859
(0.5331) 712,102
uct 102 Total at std 417 133 106 115 1,619 563 66 34 21 1,251 126 40
Product 103 Std/cwt Total at std 0.7273 365 0.1555 78 0.2047 103 0.1747 88 2.6746 1,341 0.8947 448 0.1171 59 0.0392 20 0.0288 14 1.8862 946 0.1363 68 0.0396 20
Total Std (Thousands)
1,119 323 302 351 5,281 1,803 165 80 53 3,569 288 91
Total Actual (Thousands)
Variances
1,021 307 278 348 5,308 1,721 170 83 50 3,544 288 88
98 16 24 3 (27) 82 (5) (3) 3 25 0 3
13,206 3,706 1,378 2,686 290
219 61 (68) 177 12
4,490 1,215 345 1,136 106
7.0787 1.8286 0.6904 1.4223 0.2043
3,548 917 346 713 102
13,425 3,767 1,310 2,863 302
7,294 14
11.2243 0.0192
5,626 10
21,668 42
21,266 42
402 (0)
7,280 6,900
11.2051 10.3784
5,617 5,202
21,626 21,382
21,224 21,382
402 (0)
158
(402)
(380) (0.8267) 501,276
(414)
(244)
F F F F U F U U F F F F F U F F F F U
