actual vs budget Exhibit 1.3Exhibit 1.Exhibit 4.2 Exhibit
1.2Exihibit 4.1
Original Budget Actual Vs Static Budget SummaryFlexible
BudgetActual Actual Vs Flexible Budget SummaryDecember 31,
2004December 31, 2004December 31, 2004December 31, 2004December 31,
2004Budget based on 10,000 bicycles productionBudget based on
10,800 bicycles productionBased on 10,800 bicycles production10,000
10,80010800DescriptionQuantityStandard Price/Unitper bike
allocationTotalActualBudgetFavorable/ UnfavorableTotal Variance
Total variance PercentagePrice VariancePrice variance
percentageDescriptionQuantity per bike allocation * 10,800Standard
Price/UnitTotalDescriptionQuantityActual Priceper bike
allocationTotalActualBudgetFavorable/ UnfavorableTotal Variance
Price VarianceActual price-Flex budget price * Actual
quantityQuantity Varianceactual Qty-Flex budget Qty* budget
priceFrame assembly:Frame assembly:Frame assembly:Steel
tubing$3,572,100.00$3,300,000.00272,100.00U170,100.00Frame
assembly:Frame assembly:Steel
tubing$3,572,100.00$3,564,000.008,100.00U170,100.00U(162,000.00)FSteel
tubing110,000$30.0011.00$3,300,000.00Paint28,187.5025,000.003,187.50U687.50Steel
tubing118,800$30.00$3,564,000.00Steel
tubing113,400$31.50$10.50$3,572,100.00Paint28,187.50$27,000.001,187.50U687.50U500.00UPaint1,250$20.000.1325,000.00Labor1,528,050.001,500,000.0028,050.00U25,050.00Paint1,350$20.0027,000.00Paint1,375$20.50$0.1328,187.50Labor1,528,050.00$1,620,000.00(91,950.00)F25,050.00U(117,000.00)FLabor100,000$15.0010.001,500,000.00Total
Frame
$5,128,337.50$4,825,000.00$303,337.50U28.22%195,837.5033.89%Labor108,000$15.001,620,000.00Labor100,200$15.25$9.281,528,050.00Total
Frame
Variance$5,128,337.50$5,211,000.00(82,662.50)F195837.5U(278,500.00)FTotal
Frame $4,825,000.00Total Frame $5,211,000.00Total Frame
$5,128,337.50Wheel Assembly:Wheel Assembly:Wheel
Assembly:Parts1,317,600.001,200,000.00117,600.00U21,600.00Wheel
Assembly:Wheel
Assembly:Parts1,317,600.00$1,296,000.0021,600.00U21,600.00U0.00Parts10,000$120.001.00$1,200,000.00Labor74,250.0065,000.009,250.00U2,750.00Parts10,800$120.00$1,296,000.00Parts10,800$122.00$1.00$1,317,600.00Labor74,250.00$70,200.004,050.00U2,750.00U1,300.00ULabor5,000$13.000.5065,000.00Rework
parts25,000.0025,000.00U25,000.00Labor5,400$13.0070,200.00Labor5,500$13.50$0.5174,250.00Rework
parts25,000.00$0.0025,000.00U25,000.00U0.00Total
Wheel$1,265,000.00Total
Wheel$1,416,850.00$1,265,000.00$151,850.00U14.13%49,350.008.54%Rework
Parts0$0.000.00***Rework parts10800$2.31$1.0025,000.00Total Wheel
Variance$1,416,850.00$1,366,200.0050,650.0049,350.00U1,300.00UTotal
Wheel$1,366,200.00Total Wheel$1,416,850.00Final Assembly:Final
Assembly:Final
Assembly:Parts10,000$350.001.00$3,500,000.00Parts3,963,600.003,500,000.00463,600.00U183,600.00Final
Assembly:Final
Assembly:Parts3,963,600.00$3,780,000.00183,600.00U183,600.00U0.00Labor7,500$14.000.75105,000.00Labor116,000.00105,000.0011,000.00U4,000.00Parts10,800$350.00$3,780,000.00Parts10,800$367.00$1.00$3,963,600.00Labor116,000.00$113,400.002,600.00U4,000.00U(1,400.00)FTotal
Final Assembly$3,605,000.00Rework
parts45,000.0045,000.00U45,000.00Labor8,100$14.00113,400.00Labor8,000$14.50$0.74116,000.00Rework
parts45,000.00$0.0045,000.00U45,000.00U0.00Total Final
Assembly$4,124,600.00$3,605,000.00$519,600.00U48.34%232,600.0040.26%Rework
Parts0$0.000.00Rework parts10800$4.17$1.0045,000.00Total Final
Assembly
variance$4,124,600.00$3,893,400.00231,200.00U232,600.00U(1,400.00)FTotal
Variable Costs$9,695,000.00Total Final Assembly$3,893,400.00Total
Final Assembly$4,124,600.00Total Variable
Costs$10,669,787.50$9,695,000.00$974,787.50U477,787.50Total
Variable
Costs$10,669,787.50$10,470,600.00$199,187.50$477,787.50($278,600.00)Overheard
Costs:Total Variable Costs$10,470,600.00Total Variable
Costs$10,669,787.50Rent$25.00$250,000.00Overheard Costs:Overheard
Costs:Office
Staff$10.00100,000.00Rent250,000.00250,000.000.000.00Overheard
Costs:Overheard
Costs:Rent250,000.00$250,000.000.000.000.00Depreciation$10.00100,000.00Office
Staff100,000.00100,000.000.000.00Rent$23.15$250,000.00Rent$23.15$250,000.00Office
Staff100,000.00$100,000.000.000.000.00**Other Variable
Costs$50.00500,000.00Depreciation100,000.00100,000.000.000.00Office
Staff$9.26100,000.00Office
Staff$9.26100,000.00Depreciation100,000.00$100,000.000.000.000.00Other
Fixed Costs$25.00250,000.00*Variable
Costs600,000.00500,000.00100,000.00U100,000.00Depreciation$9.26100,000.00Depreciation$9.26100,000.00*Variable
Costs600,000.00$540,000.0060,000.00U60,000.00U60,000.00UTotal
Overhead$1,200,000.00Fixed Costs250,000.00250,000.000.000.00**Other
Variable Costs$50.00540,000.00*Variable Costs$55.56600,000.00Fixed
Costs250,000.00$250,000.000.000.000.00Total
Overhead$1,300,000.00$1,200,000.00$100,000.00U9.30%100,000.0017.31%Other
Fixed Costs$23.15250,000.00Fixed Costs$23.15250,000.00Total
Overhead$1,300,000.00$1,240,000.00(60,000.00)U60,000.00U60,000.00UTotal
Overhead$1,240,000.00Total Overhead$1,300,000.00Total Annual
Costs$10,895,000.00Total Annual
Costs$11,969,787.50$10,895,000.00$1,074,787.50$577,787.50Total
Annual
Costs$11,969,787.50$11,710,600.00($259,187.50)$537,787.50($218,600.00)Cost
per Bike $1,089.50Total Annual Costs$11,710,600.00Total Annual
Costs$11,969,787.50** Estimated to be 2/3 of total other
costsActual cost per bike$1,108.31Cost per Bike $1,084.31Cost per
Bike $1,108.31Budget cost per bike$1,089.50Difference in
costs$18.81** 10,800 Bikes * price per unit***price/unit=
25,000/10,800Total additional costs $203,187.50
Gross margin Exihibit 3Exhibit 3.Gross margin ActualGross margin
Original BudgetChangeGross margin Flexible
BudgetChangeSales$13,000,000Sales$12,037,037$962,962.96Sales$13,000,000$0.00Cost
of goods sold(10,669,787.50)Cost of goods
sold(9,695,000.00)(974,787.50)Cost of goods
sold(10,470,600.00)(199,187.50)Gross Margin 2,330,213Gross Margin
2,342,037(11,824.54)Gross Margin
2,529,400(199,187.50)Overhead(1,300,000)Overhead(1,200,000)(100,000.00)Overhead(1,240,000)(60,000.00)Net
income$1,030,212.50Net Income$1,142,037.04(111,824.54)Net
Income$1,289,400.00(259,187.50)Gross Margin per bike215.76Gross
Margin per bike216.86(1.09)Gross Margin per bike234.20(18.44)Gross
Margin percentage17.92%Gross Margin percentage19.46%-1.53%Gross
Margin percentage19.46%-1.53%
Sheet5
