Spuds and Suds

Income Statement
For the Year Ended Dec. 31, 2009
2009 Per Unit Q
Sales $ 12,125,000 16.17 156,250
Less: Variable Costs 11,625,000 15.50 156,250
Gross Margin 500,000 0.67
Less: Fixed Costs 400,000
Earnings Before Interest and Taxes 100,000 750,000 12,125,000.00
Less: Interest Expense 100,000 11,625,000.00
Earnings Before Taxes -
Taxes -
Net Income -

Less: Preferred Dividends 100,000

Net Income Available to Common (100,000)
Common Shares Outstanding 1,000,000
Earnings per Share $ (0.10)

Assumptions
Price per Unit $ 16.17
Unit Sales 750,000 Note: This is the driver number for all sheets in workbook
Variable Costs as a Percent of Sales 60%
Tax Rate 40%
Note: This is the driver number for all sheets in workbook
 Spuds and Suds
Income Statement
For the Year Ended Dec. 31, 2009
2009
Sales $ 2,500,000
Less: Variable Costs 1,500,000
Less: Fixed Costs 400,000
Earnings Before Interest and Taxes 600,000
Less: Interest Expense 100,000
Earnings Before Taxes 500,000
Taxes 200,000
Net Income 300,000

Less: Preferred Dividends 100,000

Net Income Available to Common 200,000
Common Shares Outstanding 1,000,000
Earnings per Share $ 0.20

Assumptions
Price per Unit $ 16.00
Unit Sales 156,250
Target EBIT $ 800,000
Variable Costs as a Percent of Sales 60%
Tax Rate 40%

Operating Break-even Point (Units) 62,500

Operating Break-even Point (Dollars) 1,000,000

Units to Meet EBIT Target 187,500

 Spuds and Suds
Income Statement
For the Year Ended Dec. 31, 2009
2009 2010*
Sales $ 12,000,000 $ 13,200,000
Less: Variable Costs 7,200,000 7,920,000
Less: Fixed Costs 400,000 400,000
Earnings Before Interest and Taxes 4,400,000 4,880,000
Less: Interest Expense 100,000 100,000
Earnings Before Taxes 4,300,000 4,780,000
Taxes 1,720,000 1,912,000
Net Income 2,580,000 2,868,000

Less: Preferred Dividends 100,000 100,000

Net Income Available to Common 2,480,000 2,768,000
Common Shares Outstanding 1,000,000 1,000,000
Earnings per Share $ 2.48 $ 2.77

Assumptions
Price per Unit $ 16.00 $ 16.00
Unit Sales 750,000 825,000
Target EBIT $ 800,000
Variable Costs as a Percent of Sales 60% 60%
Projected Sales Growth 10%
Tax Rate 40% 40%

Operating Break-even Point (Units) 62,500 62,500

Operating Break-even Point (Dollars) 1,000,000 1,000,000

Units to Meet EBIT Target 187,500

% Change in Sales from Prior Year 10.00%

% Change in EBIT from Prior Year 10.91%
% Change in EPS from Prior Year 11.61%

Degree of Operating Leverage 1.09 1.08

Degree of Financial Leverage 1.06 1.06
Degree of Combined Leverage 1.16 1.14
 Spuds and Suds
Income Statement
For the Year Ended Dec. 31, 2009
2009 2010*
Sales $ 12,000,000 $ 13,200,000
Less: Variable Costs 7,200,000 7,920,000
Gross Margin 4,800,000 5,280,000
Less: Fixed Costs 1,100,000 400,000
Earnings Before Interest and Taxes 3,700,000 4,880,000
Less: Interest Expense 100,000 100,000
Earnings Before Taxes 3,600,000 4,780,000
Taxes 1,440,000 1,912,000
Net Income 2,160,000 2,868,000

Less: Preferred Dividends 100,000 100,000

Net Income Available to Common 2,060,000 2,768,000
Common Shares Outstanding 1,000,000 1,000,000
Earnings per Share $ 2.06 $ 2.77

Assumptions
Price per Unit $ 16.00 $ 16.00
Unit Sales 750,000 825,000
Target EBIT $ 800,000
Variable Costs as a Percent of Sales 60% 60%
Projected Sales Growth 10%
Tax Rate 40% 40%

Operating Break-even Point (Units) 171,875 62,500

Operating Break-even Point (Dollars) 2,750,000 1,000,000

Units to Meet EBIT Target 296,875

% Change in Sales from Prior Year 10.00%

% Change in EBIT from Prior Year 31.89%
% Change in EPS from Prior Year 34.37%

Degree of Operating Leverage 1.30 1.08 semakin tinggi DOL maka fixed cost nya t
Degree of Financial Leverage 1.08 1.06 semakin tinggil dfl maka utangnya gede
Degree of Combined Leverage 1.40 1.14
semakin tinggi DOL maka fixed cost nya tinggi
semakin tinggil dfl maka utangnya gede
 Leverage Measures as Sales Increase
3.00
2.80
2.60
2.40
2.20
2.00
1.80
1.60
1.40
1.20
1.00
2009 2010 2011 2012 2013
Year

Degree of Operating Leverage Degree of Financial Leverage Degree of Combined Leverage

 Data for Chart

Spuds and Suds

Income Statement
For the Year Ended Dec. 31, 2009
2009 2010* 2011* 2012* 2013*
Sales ### ### ### $ 15,972,000 $ 17,569,200
Less: Variable Costs 7,200,000 7,920,000 8,712,000 9,583,200 10,541,520
Less: Fixed Costs 400,000 400,000 400,001 400,002 400,003
Earnings Before Interest and Taxes 4,400,000 4,880,000 5,407,999 5,988,798 6,627,677
Less: Interest Expense 100,000 100,000 100,000 100,000 100,000
Earnings Before Taxes 4,300,000 4,780,000 5,307,999 5,888,798 6,527,677
Taxes 1,720,000 1,912,000 2,123,200 2,355,519 2,611,071
Net Income 2,580,000 2,868,000 3,184,799 3,533,279 3,916,606

Less: Preferred Dividends 100,000 100,000 100,001 100,002 100,003

Net Income Available to Common 2,480,000 2,768,000 3,084,798 3,433,277 3,816,603
Common Shares Outstanding 1,000,000 1,000,000 1,000,001 1,000,002 1,000,003
Earnings per Share $ 2.48 $ 2.77 $ 3.08 $ 3.43 $ 3.82

Assumptions
Price per Unit $ 16.00 $ 16.00 $ 16.00 $ 16.00 $ 16.00
Unit Sales 750,000 825,000 907,500 998,250 1,098,075
Target EBIT $ 800,000
Variable Costs as a Percent of Sales 60% 60% 60% 60% 60%
Projected Sales Growth 10% 10% 10% 10%
Tax Rate 40% 40% 40% 40% 40%

Operating Break-even Point (Units) 62,500 62,500 62,500 62,500 62,500

Operating Break-even Point (Dollars) 1,000,000 1,000,000 1,000,003 1,000,005 1,000,008

Units to Meet EBIT Target 187,500

% Change in Sales from Prior Year 10.00% 10.00% 10.00% 10.00%

% Change in EBIT from Prior Year 10.91% 10.82% 10.74% 10.67%
% Change in EPS from Prior Year 11.61% 11.44% 11.30% 11.16%

Degree of Operating Leverage 1.09 1.08 1.07 1.07 1.06

Degree of Financial Leverage 1.06 1.06 1.05 1.05 1.04
Degree of Combined Leverage 1.16 1.14 1.13 1.12 1.10