Exhibit 1

Sales 1,347,000
COGS 712,000
Std Gross Margin 635,000 220,000

Less Manufacturing Variances

Labour -17,200
Material 15,800
Overhead
Volume 107,480
Spending 5,380 111,460
Overall Gross Margin 523,540

Selling Costs
Sales Expenses 338,056
Sales Taxes 13,900
Freight Allowed 28,780 380,736

Administrative Costs
General & Administrative 108,060
Interest Expenses 57,672 165,732

PBT -22,928 -57,200

 Exhibit 2
Sales 1,347,000
COGS (Standard Variable Ciost) 492,000
Std Gross Margin 855,000

Selling Costs
Sales Expenses 338,056
Sales Taxes 13,900
Freight Allowed 28,780 380,736
474,264
Administrative Costs
General & Administrative 108,060
Interest Expenses 57,672 165,732

Factory Overhead 270,280

Manufacturing Variances
Labour -17,200
Material 15,800
Overhead
Spending 5,380 3,980

PBT 34,272
 Exhibit 3
Actual Proposed
Sales 1,132,112 1,132,112
COGS 610,416 418,648
Std Gross Margin 521,696 713,464

Less Manufacturing Variances

Labour -21,704 -21,704
Material 20,324 20,324
Overhead
Volume -1,788 --
Spending 8,692 8,692
Fixed factory Overheads -- 263,448

Profit before administrative & Selling exp 516,172 442,704

Selling Expenses 341,928 341,928
Administrative Expenses 160,208 160,208
Freight Allowed

PBT 14,036 -59,432