Exhibit 1
2013 Cost and Sales Information
Panel A: Per Case Information
Saguaro
Pale Ale
Bisbee
Bock
Ocotillo Amber Pilsner
Sedona Stout
Total
Sales price
$21.00
$24.50
$23.50
$26.50
Direct materials
2.80
3.20
3.25
3.10
Direct labor
3.60
3.60
4.20
3.00
Variable overhead
6.25
5.90
6.25
6.35
Total variable cost
12.65
12.70
13.70
12.45
Contribution margin
$ 8.35
$11.80
$ 9.80
$14.05
Cases sold last year
11,925
6,841
7,244
5,682
31,692
Direct labor hours per case
0.30
0.30
0.35
0.25
Total direct labor hours last year
3,577.50
2,052.30
2,535.40
1,420.50
9,585.70
Machine hours per case
0.30
0.20
0.25
0.35
Total machine hours last year
3,577.50
1,368.20
1,811.00
1988.70
8,745.40
Panel B: Contribution Margin Income Statement
Sales
$250,425.00
$167,604.50
$170,234.00
$150,573.00
$738,836.50
Variable costs
150,851.25
86,880.70
99,242.80
70,740.90
407,715.65
Contribution margin
99,573.75
80,723.80
70,991.20
79,832.10
331,120.85
Direct fixed costs
7,541.81
9,760.05
10,203.72
16,858.26
44,363.84
Segment margin
$ 92,031.94
$ 70,963.75
$ 60,787.48
$ 62,973.84
286,757.01
Common fixed costs
255,389.44
Operating income
31,367.57
Taxes (35%)
10,978.65
Net income
$20,388.92
Exhibit 1 2013 Cost And Sales Information Panel A Per Case Information Saguaro Pale Ale Bisbee Bock Ocotillo Amber Pils 1 (190.2 KiB) Viewed 55 times
Exhibit 2 Additional Cost Information Panel A: Details of Total Variable Costs Direct materials Direct labor Production supplies Variable portion of maintenance Variable portion of utilities Variable office supplies Shipping costs 8% sales commission Total variable costs $ 96,438.40 115,028.40 31,064.41 40,892.55 30,071.90 3,493.88 31,619.19 59,106.92 $407,715.65 Panel B: Details of Total Fixed Costs (Direct and Indirect) Brew master/quality control manager Receiving and shipping department expenses Depreciation Facility costs (rent, taxes, insurance, etc.) Advertising and marketing costs Fixed portion of maintenance Fixed portion of utilities (including refrigeration) Fixed portion of office supplies Fixed salary of salespeople Administrative staff to assist owner Total fixed costs $ 69,843.15 22,511.32 11,712.10 89,118.15 22,994.91 9,992.98 10,390.37 4,305.66 32,221.81 26,662.83 $299,753.28 Exhibit 3 Root Beer Cost Information Panel A: Alternative 1-produce in-house Direct materials per case Direct labor per case Variable overhead per case Total variable costs per case $2.00 2.75 3.00 $7.75 Additional fixed costs per year - not including the initial purchase cost of the machine $35,000.00 Panel B: Alternative 2-out-source production Purchase price per case Variable overhead per case Total variable costs per case $13.25 0.75 $14.00 Additional fixed costs per year $6,000.00
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