Written Formal Report for Opening New Facility

Your Team Number: 11 Your Name

Exhibit 13A

Wood Furniture, Inc.

Product Cost Sheet

Standard Footstools Deluxe Footstools Administrative Management

Annual Material Cost = A _1219939___________ F _1039560___________

Annual Payroll = B _1579397___________ G 1096791_________ K 857079___

Square Footage = C __32095__________ H __22304__________ L __1524_____________

Equipment = D _1238440___________ I __860611__________ M __555297_____________

Land = E _210748___________ J ___146452__________ N __112800_____________

Summary of General Expense Items

Utilities: $1.75 per square foot

Property Tax: Rate = .0048 based on 40% Assessment Value

Fire Insurance: $12 per $1000 of Value

Liability Insurance: $1.45 per $1000 Annual Payroll

Standard Footstool Cost Summary

S1: Utilities: C __32095________ X $1.75 = 56167

S2: Property Tax: (D _1238440_________ + E __210748________) X .40 X .0048 = 2783

S3: Fire Insurance: (D _1238440___________ / 1000) X 12 = 14862

S4: Liability Insurance: (B __1579397_________ /1000) X 1.45 = 2291

Deluxe Footstool Cost Summary

D1: Utilities: H _22304____ X $1.75 = 39032

D2: Property Tax: (I _860611_________ + J __146452________) X .40 X .0048 = 1934

D3: Fire Insurance: (I _860611___________ / 1000) X 12 = 10328

D4: Liability Insurance: (G _1096791__________ /1000) X 1.45 = 1591

Administrative Management Cost Summary

A1: Utilities: L _1524_________ X $1.75 = 2667

A2: Property Tax: (M __555297________ + N _112800_________) X .40 X .0048 = 1283

A3: Fire Insurance: (M __555297__________ / 1000) X 12 = 6664

A4: Liability Insurance: (K _857079__________ /1000) X 1.45 = 1243

Exhibit 13B

Wood Furniture, Inc.

Total Capital Requirement

Standard Footstools Per Year _581200____________

Deluxe Footstools Per Year _318200____________

Capital Investment:

Production Total (From Exhibit 12, Column 8) $ _2165069________

Administrative Total (From Exhibit 12, Column 10) $ _633734________

Contingency Capital (Above 2 Totals multiplied by 0.09) $ _251893_______

Sub-Total Capital Investment $ 3050696

Working Capital (2 Months or less):

Standard Footstools:

Direct Wages (B divided by 6) $ _263233________

Material Cost (A divided by 6) $ _203324________

Deluxe Footstools:

Direct Wages (G divided by 6) $ _182799________

Material Cost (F divided by 6) $ _173260________

Administrative Management Wages (K divided by 6) $ __142847_______

Other Expenses (Above 5 Totals multiplied by 0.35) $ __337913_______

Sub-Total Working Capital $ 1303376

Grand-Total $ 4354072

Exhibit 13C

Wood Furniture, Inc.

Annual Operating Expenses

Standard Footstools Per Year _581200____________

Deluxe Footstools Per Year __318200___________

Standard Footstools:

Direct Wages (B) $ _1579397________

Fringe Benefits (B multiplied by 0.25) $ _394850________

Raw Materials (A) $ _1219939________

Factory Supplies (A multiplied by 0.04) $ _48798________

Equipment Maintenance (D multiplied by 0.03) $ _37154________

Utilities (S1) $ _56167________

Property Tax (S2) $ _2783________

Fire Insurance (S3) $ _14862________

Liability Insurance (S4) $ _2291________

Sub-Total Standard Footstools $ 3356241

Deluxe Footstools:

Direct Wages (G) $ _1096791________

Fringe Benefits (G multiplied by 0.25) $ _247198________

Raw Materials (F) $ _1039560________

Factory Supplies (F multiplied by 0.04) $ _41583________

Equipment Maintenance (I multiplied by 0.03) $ _25819________

Utilities (D1) $ _39032________

Property Tax (D2) $ _1934________

Fire Insurance (D3) $ _10328________

Liability Insurance (D4) $ _1591________

Sub-Total Deluxe Footstools $ 2503836

Administrative Management Expenses:

Indirect and Management Wages (K) $ _857079________

Fringe Benefits (K multiplied by 0.25) $ _214270________

Office Supplies (K multiplied by 0.04) $ _34284________

Equipment Maintenance (M multiplied by 0.03) $ _16659________

Donations (Total Number of All Employees multiplied by $25) $ _1575________

Utilities (A1) $ _2667________

Property Tax (A2) $ _1283________

Fire Insurance (A3) $ _6664________

Liability Insurance (A4) $ _1243________

Sub-Total Administrative Management Costs $ 1135724

Grand-Total $ 6995801

Exhibit 13D

Wood Furniture, Inc.

Data Summary By Product

Standard Footstools Deluxe Footstools

Production Cost per Footstool (13C) __5.77_____________ ___7.87___________

1/2 Administrative Cost per Footstool (13C) __.98______________ ___.98____________

Total Cost per Footstool (Above 2 Totals) __6.75______________ ___8.85____________

Markup Percentage per Footstool __ 30%______________ ____ 30%___________

Selling Price per Footstool ____8.78___________ ___11.51____________

Pro-Forma Income Statement

Sales Revenue:

Standard Footstools ( _581200_________ per year at $ __8.78_____ each) $ 5102936

Deluxe Footstools ( _318200_________ per year at $ _11.51______ each) $ 3662482

Total Sales Revenue $ 8765419

Cost of Goods Sold:

Standard Footstools Direct Wages (B) $ _1579397___________

Standard Footstools Raw Materials (A) $ _1219939___________

Standard Footstools Overhead (Exhibit 13C -B -A) $ __556905__________

Deluxe Footstools Direct Wages (G) $ _1096791___________

Deluxe Footstools Raw Materials (F) $ _1039560___________

Deluxe Footstools Overhead (Exhibit 13C -G -F) $ __367485___________

Total Cost of Goods Sold $5860077

Gross Profit (Total Sales Revenue minus Total Cost of Goods Sold) $ 2905341

Operating Expenses (Administrative Management Expenses) (Exhibit 13C) $ 1135724

Depreciation (Exhibit 12 Column 6 Grand Total) $ 295346

Operating Profit (Gross Profit minus Operating Expenses and Depreciation) $ 1474271

Interest Expense (Grand Total Capital on Exhibit 13B multiplied by 0.09) $ 391867

Profit Before Tax (Operating Profit minus Interest Expense) $ 1082404

Taxes (Profit Before Tax multiplied by 0.35) $ 378842

Net Profit After Tax (Profit Before Tax minus Taxes) $ 703562

Return on Investment (ROI) = ( 703562 / 4354072 ) x 100 = _16.2__ %