| DETAIL | SUBTOTAL | TOTAL | SALES D.1 Gross Sales Sales Eliminations D 2 Sales Discounts D.3 Allowances and Returns D.4 Freight Charged on Sales D.5 Product Bought and Resold D.6 Total Sales Eliminations D.7 Net Sales MATERIAL AND COMPONENTS COST D.8 Raw Materials and Purchased Components D.9 Purchased Components D.10 Production farm-out D.11 Consumable Supplies D.12 Costs associated with product resale D.13 Total Material and Components Cost MANUFACTURING LABOUR COST D.14 Direct Labour D.15 Indirect Labour D.16 Manufacturing Supervision D.17 Fringe Benefits D.18 Total Manufacturing Labour Cost OTHER LABOUR COST D.19 Warehouse and Shipping D.20 Marketing and Selling D.21 Product Development D.22 Management Information Systems D.23 Administration D.24 Total Other Labour Cost D.25 Total Labour Cost TOTAL EMPLOYEES Manufacturing Employees D.26 Direct D.27 Indirect D.28 Manufacturing Supervisors D.29 Maintenance and Repair D.30 Total Manufacturing Employees Other Employees D.31 Warehouse and Shipping D.32 Marketing and Sales D.33 Management Information Systems D.34 Administration D.35 Total Other Employees D.36 Total Employees MANUFACTURING AREA D.37 Manufacturing Area MANUFACTURING CAPACITY D.38 Manufacturing Capacity ---------------------------------- DATA CALCULATIONS NET SALES: D7 = D1 - (D2 + D3 + D4 + D5) TOTAL MATERIAL AND COMPONENT COST: D12 = D8 + D9 + D10 + D11 MANUFACTURING LABOUR COST: D17 = D13 + D14 + D15 + D16 OTHER LABOUR COST: D24 = D18 + D19 + D20 + D21 + D22 TOTAL MANUFACTURING EMPLOYEES D29 = D25 + D26 + D27 + D28 TOTAL OTHER EMPLOYEES: D34 = D30 + D31 + D32 + D33 TOTAL EMPLOYEES: D35 = D29 + D34 MANUFACTURING AREA D37 MANUFACTURING CAPACITY D38 --------------------------------- DEFINITION OF DATA ELEMENTS Gross Sales Current Years Gross Sales This is your current year's Gross Sales from your Income Statement. Sales Eliminations Sales Discounts These include cash discounts, volume rebates and special rebates. Co-op advertising credits are transferred to Sales and Marketing, Advertising and Promotion, line item C 6.7. Allowances and Returns This includes allowances given to retailers to cover their cost of repairs and the freight on product returned by retailers. Freight Charged on Sales This is freight that is charged on sales. Product Bought and Resold This includes the sales value of any products that have been bought from outside suppliers for direct resale. Materials and Components Raw Materials and Purchased Components Purchases of all Raw Materials and Components plus incoming freight, less purchased discounts excluding any material or components used in product development.. Manufacturing Farm-out The cost of any manufacturing activity that is contracted out where the company supplies the material. Consumable Supplies All consumable supplies including small tools and jigs and fixture that are not capitalized but excluding packaging and shipping supplies and repair and maintenance supplies and parts. Costs Associated with Product Resales The purchase cost of finished products that are bought for direct resale. Manufacturing Labour Direct Labour The cost of direct Manufacturing labour. Indirect Labour The cost of indirect Manufacturing labour excluding Warehousing & Shipping labour, repair and maintenance labour and product development labour. It includes the indirect labour involved in the after sales repair of product. Manufacturing Supervision Includes all manufacturing supervision. Fringe Benefits The total cost of all fringe benefits including pension, health insurance, UIC, Workman's Compensation and similar benefits for direct and indirect labour and supervision. Administrative Labour Costs Warehouse and Shipping Labour Costs (including benefits) The labour cost plus benefits for Warehousing and Shipping personnel. Marketing and Selling Salaries and Benefits Salaries and Benefits of company employees involved in all Marketing & Selling functions including clerical and administrative but excluding Product Development. Product Development Salaries and Benefits The cost of labour associated with the development of new product. Some of this may come from Manufacturing and and some from Marketing & Selling. Management Information Systems Salaries and Benefits All salaries and benefits for MIS personnel Administrative Salaries and Benefits All salary and benefits paid to Administrative personnel. Total Employees Direct Labour All direct labour associated with Manufacturing. Indirect Labour All indirect labour associated with Manufacturing. Manufacturing Supervisors All Manufacturing supervision associated with Manufacturing. Maintenance and Repair All labour associated with Maintenance and Repair within Manufacturing Warehousing &Shipping All labour associated with Warehousing & Shipping. Some of this labour my be included with Manufacturing in which case it should be transferred to Warehousing and Shipping.. Marketing & Selling All employees associated with Marketing & Selling. MIS All Employees associated with the Management Information Systems function. Administration All employees associated with the Administration function including Human Resources. Manufacturing Area The total floor area in square feet used by the Manufacturing function Manufacturing Capacity The maximum level of Net Sales that could be generated by the existing facilities with only minor modifications -------------------------------------- PERFORMANCE RATIOS Operations Material Cost as a percentage of Net Sales D.12 / D.7 Manufacturing Labour Cost as a percentage of Net Sales D.17 / D.7 Labour Productivity Net Sales per Total Employee D.7 / D.35 Net Sales per Manufacturing Employee D.7 / D.29 Net Sales per Other Employee D.7 / D.34 Total Labour Cost as a percentage of Net Sales D.24 / D.7 Manufacturing Space Utilization Net Sales at 90% of Capacity / Manufacturing Area D.38 * 0.90 / D.37 ---------------------------------------- PERFORMANCE BENCHMARKS Performance Ratio Residential Furniture Manufacturers | Your Performance Material Cost as a % of Net Sales 49.5% | Manufacturing Labour Cost as a % of Net Sales 20% | Net Sales per Total Employee $103,000 | Net Sales per Manufacturing Employee $122,000 | Net Sales per other Employee $2,000,000 | Total Labour Cost as a % of Net Sales 26.5% | Net Sales per Square Foot of Manufacturing Area at 90% of Capacity $350 |