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$2.$Assume equal allocation of all non$-$lumber expenses for each desk $($hardware $,$salary, benefit, utility, depreciation, etc$)$It means that for items like salaries you would divide them equally among the product lines, none of them 'cost' more than the other for these items.

YEAR $1$

Price Per Desk Q$1$ Volume Q$2$ Volume Q$3$ Volume Q$4$ Volume Y$1$ Volume

Oak Desks $$2,500165265245235910$

Walnut Desks $$3,0003353654054251,530$

Cherry Desks $$3,500115185210205715$

$6158158608653,155$

Historic Revenue

Revenue IRR$/$NPV Analysis Q$1$ Q$2$ Q$3$ Q$4$ Y$1$ Actual Y$1$ Variance

Oak Desks $2,000,000412,500662,500612,500587,5002,275,000275,000$

Walnut Desks $4,000,0001,005,0001,095,0001,215,0001,275,0004,590,000590,000$

Cherry Desks $2,000,000402,500647,500735,000717,5002,502,500502,500$

Total Revenue $$8,000,0001,820,0002,405,0002,562,5002,580,000$ $$9,367,500$ $$1,367,500$

Lumber

Oak $650,000150,000250,000250,000250,000900,000(250,000)$

Walnut $800,000201,000216,832235,922242,857896,611(96,611)$

Cherry $450,00089,444147,159159,783159,444555,831(105,831)$

Total Lumber $$1,900,000440,444613,991645,705652,302$ $$2,352,442$ $$(452,442)$

Hardware

Drawer Slides $40,0009,22512,22512,90012,97547,325(7,325)$

Knobs & Handles $125,00027,67536,67538,70038,925141,975(16,975)$

Electrical & Cable management $35,0007,99510,59511,18011,24541,015(6,015)$

Total Hardware $$200,00044,89559,49562,78063,145$ $$230,315$ $$(30,315)$

All other Expenses

Salary Wages $200,00050,00050,00050,00050,000200,000-$

Hourly Wages $600,000150,000145,000145,000150,000590,00010,000$

Benefit Expenses $300,00075,00073,12573,12575,000296,2503,750$

Total Salary & Benefits $$1,100,000275,000268,125268,125275,000$ $$1,086,250$ $$13,750$

Utility Expenses $300,00068,88091,28096,32096,880353,360(53,360)$

Depreciation $1,933,000483,250483,250483,250483,2501,933,000-$

Total Other Expenses $$3,333,000827,130842,655847,695855,130$ $$3,372,610$ $$(39,610)$

Net Income $$4,667,000507,531888,8591,006,3201,009,423$ $$3,412,133$ $$(1,254,867)$

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