234 1 CMR Customer P&L Revenue ($) Share of Revenue (%) Cost of Goods Sold 5 Materials as a % of Sales 6 Materials ($) 7 Labor (Hrs.) 8 Labor cost ($16/hr x hrs) 9 Variable Manufacturing Cost ($) 10 11 Manufacturing Contribution ($) 12 Manufacturing Contribution (%) 13 14 Scenario 1 - Distribute SG&A based on revenue 15 Sales, General and Administration (SG&A) ($) 16 Earnings Before Interests and Taxes ($) EBIT 17 Earnings Before Interests and Taxes (% of Sales) EBIT 18 Share of EBIT by Segment Scenario 2 - Assign indirect labor cost to corresponding segment, 19 distribute SG&A based on revenue 20 Indirect labor (# of people) 21 Average Salary 22 Total assignable indirect labor 23 Controllable Margin by Segment ($)# EBIT 24 Other SG&A 25 Earnings Before Interests and Taxes ($) EBIT 26 Earnings Before Interests and Taxes (% of Sales) EBIT 27 Share of EBIT by Segment 28 Scenario 3 - No Assign SG&A 29 Indirect labor (# of people) 30 Average Salary 31 Total assignable indirect labor 32 Controllable Margin by Segment ($) # EBIT 33 Contribution to Controllable Margin by Segment (% of Sales) 34 Share of Contribution by Segment 35 Other Indirect Costs (SG&A) 36 EBIT ($) 37 EBIT (%) 38 39 Commercial 8,866,000 $ 7,270,000 $ 82.0% 34% 2,472 $ Total CMR $ $ 2,886,760 $ $ 2,900,000 Residential w/o Blackstone Blackstone 1,596,000 $ 1,292,763 $ 303,237 18.0% 14.6% 3.4% 26% 26% 26% 415 Residential Revenue Direct Costs Employees Cost Operational Metrics Got Rate (Projects Won/Bids) Shop Hours CMR Case Data Sources Year 1999 Total $ 8,866,000 Commercial $ 7,270,000 Residential $ 1,596,000 Blackstone $ 303,237 Materials Costs Commercial Residential Labour utilization Total Commercial Residential Blackstone Total Shop Structure Structure Dedicated to Residential Structure Dedicated to Blackstone Labour Cost ($/Hr.) S Average Salary Administration ($/year) $ Sales General & Administration $ Commercial Residential Total Blackstone Budgeted Hours Blackstone - Actual Hours Actual versus Budget p.18 Exhibit 4 Exhibit 4 Exhibit 3 34% Bottom of p.8 26% Bottom of p.8 116,716 81,003 35,713 6,785 115 at botom of p.2 plus a CFO (p.3), 118 and VP Sales and a Sales Rep (p.4) 75 p.8 43 430 4 p.12 1 16 p.8 50,000 estimated from p.12 2,900,000 p.8 Year 1998 32% Exhibit 5 69% Exhibit 5 40% Exhibit 5 3,336 Exhibit 6 5,643 Exhibit 6 169% Exhibit 6