Year Period Total Sales Forner Sales Market Share Competing Price Forner Price

2009 FH 549,000.00 192,000.00 35% 4.75 4.75

2009 SH 517,500.00 181,000.00 35% 4.75 4.75
2010 FH 387,000.00 135,500.00 35% 3.95 3.95
2010 SH 427,000.00 149,500.00 35% 3.95 3.95
2011 FH 450,000.00 135,000.00 30% 3.95 4.75
2011 SH 562,500.00 112,500.00 20% 3.95 4.75
Option 1 2012 FH 650,000.00 75,000.00 12% 3.95 4.75
Option 2 2012 FH 650,000.00 150,000.00 23% 3.95 3.95
227,500.00

@ 3.95 @ 4.75
Price 3.950 4.750
Variable Costs 3.368 3.368
Contribution Margin 0.582 1.382
Fixed Costs 98,300.00 98,300.00
Break Even Volume 168,997.13 71,145.96
Cost Price Profit/sq-yTotal ProfitVolume - 25,000.00 50,000.00 75,000.00
RM 0.52 0.52000 0.52 0.52
RM Waste 0.050666667 0.05067 0.052 0.051
D Labour 0.988 0.98800 1.026 0.989
Dep OH
Direct OH 0.568 0.544
Indirect OH 1.24 0.827
4.681 0.069 5175 Gen OH 0.296666667 0.29667 0.308 0.297
4.019 - 0.069 -10350 Factory Costs 3.714 3.228
SGA 1.671 1.453
Total Cost 5.385 4.681

Volume - 25,000.00 50,000.00 75,000.00

RM - 13,000.00 26,000.00 39,000.00
RM Waste - 1,266.67 2,600.00 3,825.00
D Labour - 24,700.00 51,300.00 74,175.00
Dep OH
Direct OH 3,600.00 16,000.00 28,400.00 40,800.00
Indirect OH 62,000.00 62,000.00 62,000.00 62,025.00
Gen OH - 7,416.67 15,400.00 22,275.00
Factory Costs 65,600.00 124,383.33 185,700.00 242,100.00
SGA 32,700.00 58,125.00 83,550.00 108,975.00
Total Cost 98,300.00 182,508.33 269,250.00 351,075.00

Direct OH 0.49600
SGA 1.01700
100,000.00 125,000.00 150,000.00 175,000.00
0.52 0.52 0.52 0.52 0.52 Volume Fixed Cost
0.049 0.049 0.051 0.052 0.05 0 98,300.00
0.979 0.962 0.975 0.997 0.99 25000 98,300.00
50000 98,300.00
0.524 0.52 0.52 0.52 75000 98,300.00
0.62 0.496 0.413 0.354 100000 98,300.00
0.294 0.289 0.293 0.299 0.30 125000 98,300.00
2.986 2.836 2.772 2.742 150000 98,300.00
1.344 1.276 1.247 1.234 175000 98,300.00
4.33 4.112 4.019 3.976 157500 98,300.00
196,875.00 98,300.00
100,000.00 125,000.00 150,000.00 175,000.00 135,000.00 98,300.00
52,000.00 65,000.00 78,000.00 91,000.00 112,500.00 98,300.00
4,900.00 6,125.00 7,650.00 9,100.00
97,900.00 120,250.00 146,250.00 174,475.00

52,400.00 65,000.00 78,000.00 91,000.00

62,000.00 62,000.00 61,950.00 61,950.00
29,400.00 36,125.00 43,950.00 52,325.00
298,600.00 354,500.00 415,800.00 479,850.00
134,400.00 159,500.00 187,050.00 215,950.00
433,000.00 514,000.00 602,850.00 695,800.00
Variable/sq-yard Variable Cost Total Costs Cost/Sq-yd
3.368 - 98,300.00 #DIV/0!
3.368 84,208.33333 182,508.33 7.300
3.368 168,416.66667 266,716.67 5.334
3.368 252,625.00000 350,925.00 4.679
3.368 336,833.33333 435,133.33 4.351
3.368 421,041.66667 519,341.67 4.155
3.368 505,250.00000 603,550.00 4.024
3.368 589,458.33333 687,758.33 3.930
3.368 530,512.50000 628,812.50 3.992
3.368 663,140.62500 761,440.63 3.868
3.368 454,725.00000 553,025.00 4.096
3.368 378,937.50000 477,237.50 4.242
Expectation 2011 FH 2011 SH Total 2011
Increased Price 4.75 4.75 4.75
Volume 157,500.00 196,875.00 354,375.00
Costs 3.99 3.87 3.92
Profit/sq-yd 0.76 0.88 0.83
Total Profits 119,312.50 173,715.63 293,028.13

Constant Price 3.95 3.95 3.95

Volume 157,500.00 196,875.00 354,375.00
Costs 3.99 3.87 3.92
Profit/sq-yd - 0.04 0.08 0.03
Total Profits - 6,687.50 16,215.63 9,528.13

Expected increase in profits 126,000.00 157,500.00 283,500.00

Reality 2011 FH 2011 SH Total 2011
Increased Price 4.75 4.75 4.75
Volume 135,000.00 112,500.00 247,500.00
Costs 4.096481481 4.242111111 4.16
Profit/sq-yd 0.65 0.51 0.59
Total Profits 88225 57137.5 145,362.50

Constant Price 3.95

Volume 168,750.00
Costs 4.24
Profit/sq-yd 0.51
Total Profits 57,137.50

Expected increase in profits