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EXHIBIT 3 2014 2015 2,141 REVENUES COGS GROSS PROFIT 2,020 1,515 505 1,575 566 EXHIBIT 4 2014 REVENUES 5,000 VARIARI can ANSWER THE FOLLOWING QUESTIONS BASED ON EXHIBIT 3: Q. If you knew that in 2014 $1,000 of COGS was variable, what percentage of the revenue increase was attributable to volume and how much was attributable to price? Show your work. be. If you knew that 100% of COGS was variable in 2014, what percentage of the revenue increase was attributable to volume and how much was attributable to price? Show your work Assume in 2015 that 1,000 of COGS is variable and 575 is fixed. If revenue in 2016 increases a total of 8%, 2% due to price and 6% due to volume, what is gross profit in 2016? 4. State whether the following expenses are likely to be variable cost or fixed cost.Factory WorkersRaw materials Rent on plantPresident's Assistant (aka secretary)Rent on headquarters buildingSales force base salary? EXHIBIT 1 Assets 2014 2015 Current Assets Cash Accounts Receivable Inventory Prepaid Expenses 3,417 4,854 1,271 631 3,312 5,100 1,330 650 PPE Goodwill 32,875 3,450 33,600 3,670 46,498 47,662 Total Assets Liabilites Current Liabilities Accounts Payable Current Portion Debt (CPLTD) 6,109 2,350 6,305 1,200 21,000 5,500 20,800 5,500 Senior Debt Subordinated Debt 34,959 33,805 Total Liabilites Shareholders' Equity 7,545 3,994 7,545 6,312 Common Stock Retained Earnings EXHIBIT 2 Revenues COGS Gross Profit Operating Exenses Operating Income Interest Expense Income Before Taxes Income Tax Net Income 2014 19,500 10,500 9,000 4,227 4,773 1,840 2,933 733 2,200 2015 20,475 11,000 9,475 4,624 4,851 1,760 3,091 773 2,318 EXHIBIT 3 2014 2015 2,141 REVENUES COGS GROSS PROFIT 2,020 1,515 505 1,575 566 EXHIBIT 4 2014 REVENUES VARIABLE COGS FIXED COGS OPERATING EXPENSES 5,000 3,500 500 400 ANSWER THE FOLLOWING QUESTIONS BASED ON EXHIBIT 3: Q. If you knew that in 2014 $1,000 of COGS was variable, what percentage of the revenue increase was attributable to volume and how much was attributable to price? Show your work. be. If you knew that 100% of COGS was variable in 2014, what percentage of the revenue increase was attributable to volume and how much was attributable to price? Show your work Assume in 2015 that 1,000 of COGS is variable and 575 is fixed. If revenue in 2016 increases a total of 8%, 2% due to price and 6% due to volume, what is gross profit in 2016? 4. State whether the following expenses are likely to be variable cost or fixed cost.Factory WorkersRaw materials Rent on plantPresident's Assistant (aka secretary)Rent on headquarters buildingSales force base salary

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