BUDGETED INCOME STATEMENT

REVENUES SC 1
COST OF GOODS SOLD SC 7
GROSS MARGIN
OPERATING COSTS

R & D / PRODUCT DESIGN SC 8

MARKETING COSTS SC 8
DISTRIBUTION COSTS SC 8
CUSTOMER SERVICE COSTS SC 8
ADMINISTRATIVE COSTS SC 8
OPERATING INCOME

SCHEDULE 1
REVENUE BUDGET FOR THE YEAR ENDING 2002
COFFEE TABLES SELLING PRICE UNITS SOLD
392 52000

SCHEDULE 7
COST OF GOODS SOLD BUDGET FOR THE YEAR ENDED DEC 2004

BEGINNING FINISHED GOODS INVENTORY JAN1 2004

275 5000
DIRECT MATERIAL USED
DIRECT MANUFACTURING LABOUR
MANUFACTURING OVERHEAD
COST OF GOODS MANUFACTURED
COST OF GOODS AVAILABLE FOR SALE
DEDUCT ENDING W.I.Process (FG + PB & RO ) INVENTORY DEC 2004
COST OF GOODS SOLD

SCHEDULE 2
PRODUCTION BUDGET FOR THE YEAR ENDED 2004
BUDGETED UNIT SALES 52000
+ TARGET ENDING FG INV. 3000
TOTAL REQUIREMENT 55000
- BEGINNING FG INV. 5000
UNITS TO BE PRODUCED 50000

SCHEDULE 3A
DIRECT MATERIAL USAGE BUDGET
PHYSICAL UNITS BUDGET

PB 50000 9 450000
RO 50000 10 500000

COST BUDGET
2003 INVENTORY
PB 3.9 20000 78000
RO 5.8 25000 145000
CURRENT PURCHASES
PB 4 430000 1720000
RO 6 475000 2850000
TOT PB 1798000
TOT RO 2995000
TOTAL 4793000
SCHEDULE 3B
TO BE PURCHASED AFTER ADDING DM ENDING INVENTORY
PB 448000 4 1792000
RO 497000 6 2982000
4774000

SCHEDULE 4
LABOR HOURS BUDGET
LL 0.25 50000 12500
ML 3.75 50000 187500
TOTAL 4 200000
COST BUDGET
LL 12500 25 312500
ML 187500 30 5625000
TOTAL 5937500

BUDGETED INCOME STATEMENT FOR THE YEAR 2004

REVENUES SCH 1 20384000

COST OF GOODS SOLD SCH 7 14751250
GROSS MARGIN 5632750
OPERATING COSTS
TOT NON MANF. COSTS SCH 8 4151840
OPERATING INCOME 1480910

y=14,00,000L + 17.5dmlh + .135R

50000 18389340 18903090

2751840 14230500
4151840
18382340

SENSITIVITY ANALYSIS WITH DIFFERENT SPU, FC, VCU

FC SPU VCU BE(Units) BE (amount)
3000000 392 305.67 34751.00 13622392.00
 A. EACH COFFEE TABLE PRODUCT SPECIFICATION
DIRECT MATERIAL
PARTICLE BOARD (PB)
RED OAK (RO)
DIRECT MANUFACTURING LABOR
LAMINATING LABOR
MACHINING LABOR

B. INVENTORY INFORMATION IN PHYSICAL UNITS FOR 2004 IS

BEGINNING INVENTORY
DIR MATERIAL
PB 20000 b.f
RO 25000 b.f
FINISHED GOODS
COFFEE TABLE 5000 units
TOTAL REVENUES
20384000 C. COFFEE TABLE REVENUES EXPECTED FOR 2004
SELLING PRICE 392
UNITS SOLD 52000

D. COSTS EXPECTED FOR 2004 2003

PB (per board feet ) 3.9
GIVEN 1375000 RO (per b.f) 5.8
SC 3A 4793000 LAMINATING LABOR 24
SC 4 5937500 MACHINING LABOR 29
SC 5 3500000 E. OTHER BUDGETED COST RATES AND AMOUNT FOR 2004 ARE
14230500 VARIABLE MANF. OVERHEAD COST -
15605500 VARIABLE NON-MANF. COSTS
SC 6B 854250 FIXED MANF. OVERHEAD COSTS
14751250 FIXED NON-MANF COSTS
MANF. COSTS (INVENTORIABLE COSTS) FOR 2003

SCHEDULE 5
DIR. MANF. OH BUDGET FOR THE YR. ENDED 2004
AT BUDGETED LEVEL OF 2,00,000
VAR. MANF. OH COSTS
SUPPLIES 240000
IND. MANF LABOR 620000
POWER AND ENERGY 460000
MAINTENANCE 300000
MISCELLANEOUS 280000

FIXED MANF. OH COSTS

DEPRECIATION 500000
PROPERTY TAXES 350000
PROPERTY INSURANCE 260000
PLANT SUPERVISION 210000
MISCELLANEOUS 280000
 TOTAL MANUFACTURING OVERHEAD COSTS

BUDGETED MANF. COST PER COFFEE TABLE /TABLE

BUDGETED MANF. COST PER COFFEE TABLE /LAB HR

SCHEDULE 6A
COST OF COFFEE TABLES STARTED AND COMPLETED IN 2004
DIRECT MATERIAL COST/UNIT INPUT
PB 4 9
RO 6 10

DIRECT MANF. LABOUR

LL 25 0.25
ML 30 3.75

MANUFACTURING OVERHEADS
TOTAL

SCHEDULE 6B
ENDING INVENTORY BUDGET FOR DM AND FG
DIRECT MATERIAL COST/UNIT ENDING INVENTORY
PB 4 18000
RO 6 22000
FINISHED GOODS 284.75 3000
TOTAL ENDING INVENTORY

SCHEDULE 8
NON MANUFACTURING COSTS BUDGET
VARIABLE FIXED TOTAL
R&D 305760 250000 555760
MARKETING 1630720 290000 1920720
DISTRIBUTION 509600 220000 729600
CUSTOMER SERVIC 264992 240000 504992
ADMINISTRATION 40768 400000 440768
2751840 1400000 4151840

14807000
 9 b.f per table
10 b.f per table

0.25 hrs per table

3.75 hrs per table

TS FOR 2004 IS
TARGET ENDING INVENTORY

18000 b.f
22000 b.f

3000 units

2004
4
6
25
30
NT FOR 2004 ARE
9.5 PER DIRECT MANF. LABOR HRS.
13.50% OF REVENUES
1600000
1400000
TS) FOR 2003 295 PER COFFEE TABLE

UDGETED LEVEL OF 2,00,000 DML

1900000

1600000
 3500000

70
70

PLETED IN 2004
TOTAL
36
60
96

6.25
112.5
118.75
214.75
70
284.75

NG INVENTORY
72000
132000 204000
854250 854250
1058250
BUDGETED SELLING PRICE 392
SELLING PRICE GOES UP BY 10 % GOES DOWN BY %
SELLING PRICE

BUDGETED UNITS SOLD 52000

D. COSTS EXPECTED FOR 2004 2003 2004

PB (per board feet ) 3.9 4
RO (per b.f) 5.8 6
LAMINATING LABOR 24 25
MACHINING LABOR 29 30

E. OTHER BUDGETED COST RATES AND AMOUNT FOR 2004 ARE

VARIABLE MANF. OVERHEAD COST - 9.5 PER DIRECT MANF. LABOR HRS.
VARIABLE NON-MANF. COSTS 13.50% OF REVENUES
FIXED MANF. OVERHEAD COSTS 1600000
FIXED NON-MANF COSTS 1400000
MANF. COSTS (INVENTORIABLE COSTS) FOR 2003 295 PER COFFEE TABLE
BUDGETED INCOME STATEMENT FOR THE YEAR 2004

REVENUES SCH 1 20384000

COST OF GOODS SOLD SCH 7 14751250
GROSS MARGIN 5632750
OPERATING COSTS
TOT NON MANF. CO SCH 8 4151840
OPERATING INCOME 1480910

SENSITIVITY ANALYSIS
SELLING PRICE 392 INC. % 5 411.6 DEC %