*** GROSS PROFIT ANALYSIS BY PRODUCT/SERVICE (Year 1 by month) ***

*
% of
Seller Assisted Marketing Plan Fees Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $214,181 $218,244 $230,434 $295,445 $555,487 $555,487 $341,306 $341,306 $341,306 $351,552 $40,985 $204,925 $3,690,658 *
Material $6,425 $6,547 $6,913 $8,863 $16,665 $16,665 $10,239 $10,239 $10,239 $10,547 $1,230 $6,148 $110,720 3.00%
Labor $38,059 $38,781 $40,948 $52,500 $98,709 $98,709 $60,649 $60,649 $60,649 $62,470 $7,283 $36,415 $655,821 17.77%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.87%
Gross Profit $167,067 $170,280 $179,931 $231,433 $437,458 $437,451 $267,750 $267,743 $267,737 $275,847 $29,777 $159,661 $2,892,135 78.36%
% of Sales 78.00% 78.02% 78.08% 78.33% 78.75% 78.75% 78.45% 78.45% 78.44% 78.47% 72.65% 77.91% 78.36% *
*
% of
Employee Educational Formats 1 & 2 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $244 $1,466 $7,578 $34,225 $81,407 $149,125 $237,378 $346,166 $475,490 $604,813 $734,136 $863,460 $3,535,488 *
Material $7 $44 $227 $1,027 $2,442 $4,474 $7,121 $10,385 $14,265 $18,144 $22,024 $25,904 $106,064 3.00%
Labor $199 $1,193 $6,166 $27,849 $66,241 $121,343 $193,155 $281,675 $386,906 $492,137 $597,367 $702,598 $2,876,829 81.37%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.90%
Gross Profit ($2,592) ($2,407) ($1,457) $2,700 $10,069 $20,646 $34,434 $51,431 $71,638 $91,844 $112,050 $132,257 $520,613 14.73%
% of Sales -1062.30% -164.19% -19.23% 7.89% 12.37% 13.84% 14.51% 14.86% 15.07% 15.19% 15.26% 15.32% 14.73% *
*
% of
Manager Educational Formats 3 & 4 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $270 $1,622 $8,382 $37,856 $90,045 $164,948 $262,547 $382,896 $525,941 $668,986 $812,031 $955,094 $3,910,618 *
Material $8 $49 $251 $1,136 $2,701 $4,948 $7,876 $11,487 $15,778 $20,070 $24,361 $28,653 $117,318 3.00%
Labor $166 $997 $5,155 $23,281 $55,376 $101,440 $161,461 $235,473 $323,443 $411,413 $499,382 $587,363 $2,404,950 61.50%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.82%
Gross Profit ($2,534) ($2,060) $334 $10,790 $29,313 $55,898 $90,542 $133,261 $184,039 $234,815 $285,593 $336,377 $1,356,368 34.68%
% of Sales -938.52% -127.00% 3.98% 28.50% 32.55% 33.89% 34.49% 34.80% 34.99% 35.10% 35.17% 35.22% 34.68% *
*
% of
Employer Educational Formats 5 & 6 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $1,472 $7,360 $36,804 $160,465 $284,127 $407,789 $532,922 $662,472 $815,577 $939,239 $1,062,900 $1,186,562 $6,097,689 *
Material $44 $221 $1,104 $4,814 $8,524 $12,234 $15,988 $19,874 $24,467 $28,177 $31,887 $35,597 $182,931 3.00%
Labor $1,082 $5,410 $27,051 $117,942 $208,833 $299,725 $391,698 $486,917 $599,449 $690,341 $781,232 $872,123 $4,481,803 73.50%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.52%
Gross Profit ($2,284) ($907) $6,007 $35,060 $64,115 $93,168 $122,568 $153,006 $188,980 $218,033 $247,086 $276,141 $1,400,973 22.98%
% of Sales -155.16% -12.32% 16.32% 21.85% 22.57% 22.85% 23.00% 23.10% 23.17% 23.21% 23.25% 23.27% 22.98% *
*
% of
Small Business Educational Format 7 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $1,104 $5,520 $27,603 $120,349 $213,095 $305,841 $399,692 $496,854 $611,683 $704,429 $797,175 $889,921 $4,573,266 *
Material $33 $166 $828 $3,610 $6,393 $9,175 $11,991 $14,906 $18,350 $21,133 $23,915 $26,698 $137,198 3.00%
Labor $541 $2,705 $13,525 $58,971 $104,417 $149,862 $195,849 $243,458 $299,725 $345,170 $390,616 $436,061 $2,240,900 49.00%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.70%
Gross Profit ($2,100) $13 $10,608 $55,119 $99,630 $144,142 $189,184 $235,815 $290,927 $335,438 $379,949 $424,461 $2,163,186 47.30%
% of Sales -190.22% 0.24% 38.43% 45.80% 46.75% 47.13% 47.33% 47.46% 47.56% 47.62% 47.66% 47.70% 47.30% *
*
% of
Large Business Educational Format 8 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $1,349 $6,747 $33,737 $147,095 $260,454 $373,812 $487,170 $600,528 $715,235 $720,633 $747,623 $860,981 $4,955,364 *
Material $40 $202 $1,012 $4,413 $7,814 $11,214 $14,615 $18,016 $21,457 $21,619 $22,429 $25,829 $148,660 3.00%
Labor $721 $3,607 $18,034 $78,628 $139,222 $199,817 $260,411 $321,005 $382,320 $385,205 $399,633 $460,227 $2,648,830 53.45%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.65%
Gross Profit ($2,042) $302 $12,049 $61,405 $110,763 $160,119 $209,476 $258,832 $308,777 $311,121 $322,866 $372,224 $2,125,892 42.90%
% of Sales -151.37% 4.48% 35.71% 41.75% 42.53% 42.83% 43.00% 43.10% 43.17% 43.17% 43.19% 43.23% 42.90% *
*
% of
Packaged Educational Formats 1, 3, 5 & 7 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $1,939 $9,695 $48,479 $211,369 $374,260 $537,150 $700,041 $862,931 $1,027,761 $1,035,518 $1,074,301 $1,237,191 $7,120,635 *
Material $58 $291 $1,454 $6,341 $11,228 $16,115 $21,001 $25,888 $30,833 $31,066 $32,229 $37,116 $213,620 3.00%
Labor $721 $3,606 $18,034 $78,628 $139,222 $199,816 $260,411 $321,005 $382,320 $385,206 $399,633 $460,227 $2,648,829 37.20%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.45%
Gross Profit ($1,470) $3,162 $26,349 $123,751 $221,155 $318,557 $415,961 $513,363 $611,927 $616,558 $639,744 $737,147 $4,226,204 59.35%
% of Sales -75.81% 32.61% 54.35% 58.55% 59.09% 59.31% 59.42% 59.49% 59.54% 59.54% 59.55% 59.58% 59.35% *
*
% of
Packaged Educational Formats 2, 4, 6 & 8 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $2,501 $12,507 $62,537 $272,662 $482,787 $692,912 $903,037 $1,113,161 $1,323,286 $1,323,286 $1,323,286 $1,323,286 $8,835,248 *
Material $75 $375 $1,876 $8,180 $14,484 $20,787 $27,091 $33,395 $39,699 $39,699 $39,699 $39,699 $265,059 3.00%
Labor $1,623 $8,115 $40,576 $176,913 $313,250 $449,587 $585,924 $722,260 $858,597 $858,597 $858,597 $858,597 $5,732,636 64.88%
Fixed Cost of Goods & Services $2,630 $2,636 $2,642 $2,649 $2,655 $2,662 $2,668 $2,675 $2,681 $2,688 $2,695 $2,701 $31,982 0.36%
Gross Profit ($1,827) $1,381 $17,443 $84,920 $152,398 $219,876 $287,354 $354,831 $422,309 $422,302 $422,295 $422,289 $2,805,571 31.75%
% of Sales -73.05% 11.04% 27.89% 31.14% 31.57% 31.73% 31.82% 31.88% 31.91% 31.91% 31.91% 31.91% 31.75% *
*** BUDGET (Year 1 by month) ***
% of Total
Sales Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Seller Assisted Marketing Plan Fees $214,181 $218,244 $230,434 $295,445 $555,487 $555,487 $341,306 $341,306 $341,306 $351,552 $40,985 $204,925 $3,690,658 8.64%
Employee Educational Formats 1 & 2 $244 $1,466 $7,578 $34,225 $81,407 $149,125 $237,378 $346,166 $475,490 $604,813 $734,136 $863,460 $3,535,488 8.28%
Manager Educational Formats 3 & 4 $270 $1,622 $8,382 $37,856 $90,045 $164,948 $262,547 $382,896 $525,941 $668,986 $812,031 $955,094 $3,910,618 9.15%
Employer Educational Formats 5 & 6 $1,472 $7,360 $36,804 $160,465 $284,127 $407,789 $532,922 $662,472 $815,577 $939,239 $1,062,900 $1,186,562 $6,097,689 14.27%
Small Business Educational Format 7 $1,104 $5,520 $27,603 $120,349 $213,095 $305,841 $399,692 $496,854 $611,683 $704,429 $797,175 $889,921 $4,573,266 10.71%
Large Business Educational Format 8 $1,349 $6,747 $33,737 $147,095 $260,454 $373,812 $487,170 $600,528 $715,235 $720,633 $747,623 $860,981 $4,955,364 11.60%
Packaged Educational Formats 1, 3, 5 & 7 $1,939 $9,695 $48,479 $211,369 $374,260 $537,150 $700,041 $862,931 $1,027,761 $1,035,518 $1,074,301 $1,237,191 $7,120,635 16.67%
Packaged Educational Formats 2, 4, 6 & 8 $2,501 $12,507 $62,537 $272,662 $482,787 $692,912 $903,037 $1,113,161 $1,323,286 $1,323,286 $1,323,286 $1,323,286 $8,835,248 20.68%

Total Sales $223,060 $263,161 $455,554 $1,279,466 $2,341,662 $3,187,064 $3,864,093 $4,806,314 $5,836,279 $6,348,456 $6,592,437 $7,521,420 $42,718,966 100.00%

Cost of Goods Sold

Material $6,690 $7,895 $13,665 $38,384 $70,251 $95,612 $115,922 $144,190 $175,088 $190,455 $197,774 $225,644 $1,281,570 3.00%
Labor $43,112 $64,414 $169,489 $614,712 $1,125,270 $1,620,299 $2,109,558 $2,672,442 $3,293,409 $3,630,539 $3,933,743 $4,413,611 $23,690,598 55.46%

Total Variable COGS $49,802 $72,309 $183,154 $653,096 $1,195,521 $1,715,911 $2,225,480 $2,816,632 $3,468,497 $3,820,994 $4,131,517 $4,639,255 $24,972,168 58.46%
% of Total Sales 22.33% 27.48% 40.20% 51.04% 51.05% 53.84% 57.59% 58.60% 59.43% 60.19% 62.67% 61.68% 58.46%

Fixed Cost of Goods & Services

Production Management Salaries $20,833 $20,884 $20,936 $20,988 $21,040 $21,092 $21,144 $21,196 $21,248 $21,300 $21,353 $21,406 $253,420 0.59%
Production Facility Expense $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $420 0.00%
Production Equipment Rental $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $204 0.00%
Small Tools / Supplies $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $29 $348 0.00%
Packaging Supplies $47 $47 $47 $47 $47 $47 $47 $47 $47 $47 $47 $47 $564 0.00%
Other Production Expenses $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $75 $900 0.00%

Total Fixed Cost of Goods & Services $21,036 $21,087 $21,139 $21,191 $21,243 $21,295 $21,347 $21,399 $21,451 $21,503 $21,556 $21,609 $255,856 0.60%
% of Total Sales 9.43% 8.01% 4.64% 1.66% 0.91% 0.67% 0.55% 0.45% 0.37% 0.34% 0.33% 0.29% 0.60%

Total Cost of Goods Sold $70,838 $93,396 $204,293 $674,287 $1,216,764 $1,737,206 $2,246,827 $2,838,031 $3,489,948 $3,842,497 $4,153,073 $4,660,864 $25,228,024 59.06%

Gross Profit $152,222 $169,765 $251,261 $605,179 $1,124,898 $1,449,858 $1,617,266 $1,968,283 $2,346,331 $2,505,959 $2,439,364 $2,860,556 $17,490,942 40.94%
% of Total Sales 68.24% 64.51% 55.16% 47.30% 48.04% 45.49% 41.85% 40.95% 40.20% 39.47% 37.00% 38.03% 40.94%

Operating Expenses *
Sales & Marketing *
Advertising $7,500 $7,518 $7,537 $7,556 $7,575 $7,594 $7,613 $7,632 $7,651 $7,670 $7,689 $7,708 $91,243 0.21%
Commissions $4,461 $5,263 $9,111 $25,589 $46,833 $63,741 $77,282 $96,126 $116,726 $126,969 $131,849 $150,428 $854,378 2.00%
Entertainment $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500 0.00%
Literature $1,298 $1,301 $1,304 $1,307 $1,310 $1,313 $1,316 $1,319 $1,322 $1,325 $1,328 $1,331 $15,774 0.04%
Promotions $1,500 $1,504 $1,508 $1,512 $1,516 $1,520 $1,524 $1,528 $1,532 $1,536 $1,540 $1,544 $18,264 0.04%
Salaries $7,788 $7,807 $7,826 $7,845 $7,864 $7,883 $7,902 $7,921 $7,941 $7,961 $7,981 $8,001 $94,720 0.22%
Trade Shows $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $167 $2,004 0.00%
Travel $500 $501 $502 $503 $504 $505 $506 $507 $508 $509 $510 $511 $6,066 0.01%

Total Sales & Marketing Costs $23,339 $24,186 $28,080 $44,604 $65,894 $82,848 $96,435 $115,325 $135,972 $146,262 $151,189 $169,815 $1,083,949 2.54%
% of Total Sales 10.46% 9.19% 6.16% 3.49% 2.81% 2.60% 2.50% 2.40% 2.33% 2.30% 2.29% 2.26% 2.54%

Research & Development

Consulting $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500 0.00%
Equipment (Expensed Purchases) $1,175 $1,178 $1,181 $1,184 $1,187 $1,190 $1,193 $1,196 $1,199 $1,202 $1,205 $1,208 $14,298 0.03%
R & D Materials $333 $334 $335 $336 $337 $338 $339 $340 $341 $342 $343 $344 $4,062 0.01%
R & D Salaries $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $768 0.00%

Total R & D Costs $1,697 $1,701 $1,705 $1,709 $1,713 $1,717 $1,721 $1,725 $1,729 $1,733 $1,737 $1,741 $20,628 0.05%
% of Total Sales 0.76% 0.65% 0.37% 0.13% 0.07% 0.05% 0.04% 0.04% 0.03% 0.03% 0.03% 0.02% 0.05%

General & Administrative

Accounting $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $360 0.00%
Admin Salaries $3,613 $3,622 $3,631 $3,640 $3,649 $3,658 $3,667 $3,676 $3,685 $3,694 $3,703 $3,712 $43,950 0.10%
Emergency Funds $100 $106 $112 $119 $126 $133 $141 $149 $158 $167 $177 $188 $1,676 0.00%
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%
Equipment Rental/Small Purchases $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $420 0.00%
Insurance $1,410 $1,413 $1,416 $1,419 $1,422 $1,426 $1,430 $1,434 $1,438 $1,442 $1,446 $1,450 $17,146 0.04%
Legal Fees $385 $386 $387 $388 $389 $390 $391 $392 $393 $394 $395 $396 $4,686 0.01%
Licenses and Permits $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500 0.00%
Office Expenses $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $25 $300 0.00%
Office Rental $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $180 0.00%
Taxes (non-Income Taxes) $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $396 0.00%
Telephone $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $60 $720 0.00%
Utilities $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 $420 0.00%

Total G & A Costs $5,866 $5,885 $5,904 $5,924 $5,944 $5,965 $5,987 $6,009 $6,032 $6,055 $6,079 $6,104 $71,754 0.17%
% of Total Sales 2.63% 2.24% 1.30% 0.46% 0.25% 0.19% 0.15% 0.13% 0.10% 0.10% 0.09% 0.08% 0.17%

Total Operating Expenses $30,902 $31,772 $35,689 $52,237 $73,551 $90,530 $104,143 $123,059 $143,733 $154,050 $159,005 $177,660 $1,176,331 2.75%
% of Total Sales 13.85% 12.07% 7.83% 4.08% 3.14% 2.84% 2.70% 2.56% 2.46% 2.43% 2.41% 2.36% 2.75%

Income From Operations $121,320 $137,993 $215,572 $552,942 $1,051,347 $1,359,328 $1,513,123 $1,845,224 $2,202,598 $2,351,909 $2,280,359 $2,682,896 $16,314,611 38.19%
% of Total Sales 54.39% 52.44% 47.32% 43.22% 44.90% 42.65% 39.16% 38.39% 37.74% 37.05% 34.59% 35.67% 38.19%

Interest Income $6 $12 $24 $48 $97 $195 $392 $789 $1,587 $3,193 $6,424 $12,924 $25,691 0.06%
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%
Income before Taxes $121,326 $138,005 $215,596 $552,990 $1,051,444 $1,359,523 $1,513,515 $1,846,013 $2,204,185 $2,355,102 $2,286,783 $2,695,820 $16,340,302 38.25%
Taxes on Income $40,038 $45,542 $71,147 $182,487 $346,977 $448,643 $499,460 $609,184 $727,381 $777,184 $754,638 $889,619 $5,392,300

Net Income After Taxes $81,288 $92,463 $144,449 $370,503 $704,467 $910,880 $1,014,055 $1,236,829 $1,476,804 $1,577,918 $1,532,145 $1,806,201 $10,948,002 25.63%
% of Total Sales 36.44% 35.14% 31.71% 28.96% 30.08% 28.58% 26.24% 25.73% 25.30% 24.86% 23.24% 24.01% 25.63%
*** INCOME STATEMENT (Year 1 by month) ***
% of Total
Sales Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Seller Assisted Marketing Plan Fees $214,181 $218,244 $230,434 $295,445 $555,487 $555,487 $341,306 $341,306 $341,306 $351,552 $40,985 $204,925 $3,690,658 8.64%
Employee Educational Formats 1 & 2 $244 $1,466 $7,578 $34,225 $81,407 $149,125 $237,378 $346,166 $475,490 $604,813 $734,136 $863,460 $3,535,488 8.28%
Manager Educational Formats 3 & 4 $270 $1,622 $8,382 $37,856 $90,045 $164,948 $262,547 $382,896 $525,941 $668,986 $812,031 $955,094 $3,910,618 9.15%
Employer Educational Formats 5 & 6 $1,472 $7,360 $36,804 $160,465 $284,127 $407,789 $532,922 $662,472 $815,577 $939,239 $1,062,900 $1,186,562 $6,097,689 14.27%
Small Business Educational Format 7 $1,104 $5,520 $27,603 $120,349 $213,095 $305,841 $399,692 $496,854 $611,683 $704,429 $797,175 $889,921 $4,573,266 10.71%
Large Business Educational Format 8 $1,349 $6,747 $33,737 $147,095 $260,454 $373,812 $487,170 $600,528 $715,235 $720,633 $747,623 $860,981 $4,955,364 11.60%
Packaged Educational Formats 1, 3, 5 & 7 $1,939 $9,695 $48,479 $211,369 $374,260 $537,150 $700,041 $862,931 $1,027,761 $1,035,518 $1,074,301 $1,237,191 $7,120,635 16.67%
Packaged Educational Formats 2, 4, 6 & 8 $2,501 $12,507 $62,537 $272,662 $482,787 $692,912 $903,037 $1,113,161 $1,323,286 $1,323,286 $1,323,286 $1,323,286 $8,835,248 20.68%

Total Sales $223,060 $263,161 $455,554 $1,279,466 $2,341,662 $3,187,064 $3,864,093 $4,806,314 $5,836,279 $6,348,456 $6,592,437 $7,521,420 $42,718,966 100.00%

Cost of Goods Sold

Material $6,690 $7,895 $13,665 $38,384 $70,251 $95,612 $115,922 $144,190 $175,088 $190,455 $197,774 $225,644 $1,281,570 3.00%
Labor $43,112 $64,414 $169,489 $614,712 $1,125,270 $1,620,299 $2,109,558 $2,672,442 $3,293,409 $3,630,539 $3,933,743 $4,413,611 $23,690,598 55.46%

Total Variable COGS $49,802 $72,309 $183,154 $653,096 $1,195,521 $1,715,911 $2,225,480 $2,816,632 $3,468,497 $3,820,994 $4,131,517 $4,639,255 $24,972,168 58.46%
% of Total Sales 22.33% 27.48% 40.20% 51.04% 51.05% 53.84% 57.59% 58.60% 59.43% 60.19% 62.67% 61.68% 58.46%

Total Fixed Cost of Goods & Services $21,036 $21,087 $21,139 $21,191 $21,243 $21,295 $21,347 $21,399 $21,451 $21,503 $21,556 $21,609 $255,856 0.60%

Total Cost of Goods Sold $70,838 $93,396 $204,293 $674,287 $1,216,764 $1,737,206 $2,246,827 $2,838,031 $3,489,948 $3,842,497 $4,153,073 $4,660,864 $25,228,024 59.06%

Gross Profit $152,222 $169,765 $251,261 $605,179 $1,124,898 $1,449,858 $1,617,266 $1,968,283 $2,346,331 $2,505,959 $2,439,364 $2,860,556 $17,490,942 40.94%
% of Total Sales 68.24% 64.51% 55.16% 47.30% 48.04% 45.49% 41.85% 40.95% 40.20% 39.47% 37.00% 38.03% 40.94%

Operating Expenses
Sales & Marketing $23,339 $24,186 $28,080 $44,604 $65,894 $82,848 $96,435 $115,325 $135,972 $146,262 $151,189 $169,815 $1,083,949 2.54%
Research & Development $1,697 $1,701 $1,705 $1,709 $1,713 $1,717 $1,721 $1,725 $1,729 $1,733 $1,737 $1,741 $20,628 0.05%
G & A (without Depreciation) $5,866 $5,885 $5,904 $5,924 $5,944 $5,965 $5,987 $6,009 $6,032 $6,055 $6,079 $6,104 $71,754 0.17%
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%

Total Operating Expenses $30,902 $31,772 $35,689 $52,237 $73,551 $90,530 $104,143 $123,059 $143,733 $154,050 $159,005 $177,660 $1,176,331 2.75%
% of Total Sales 13.85% 12.07% 7.83% 4.08% 3.14% 2.84% 2.70% 2.56% 2.46% 2.43% 2.41% 2.36% 2.75%

Income From Operations $121,320 $137,993 $215,572 $552,942 $1,051,347 $1,359,328 $1,513,123 $1,845,224 $2,202,598 $2,351,909 $2,280,359 $2,682,896 $16,314,611 38.19%
% of Total Sales 54.39% 52.44% 47.32% 43.22% 44.90% 42.65% 39.16% 38.39% 37.74% 37.05% 34.59% 35.67% 38.19%

Interest Income $6 $12 $24 $48 $97 $195 $392 $789 $1,587 $3,193 $6,424 $12,924 $25,691 0.06%
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%
Income before Taxes $121,326 $138,005 $215,596 $552,990 $1,051,444 $1,359,523 $1,513,515 $1,846,013 $2,204,185 $2,355,102 $2,286,783 $2,695,820 $16,340,302 38.25%
Taxes on Income $40,038 $45,542 $71,147 $182,487 $346,977 $448,643 $499,460 $609,184 $727,381 $777,184 $754,638 $889,619 $5,392,300 12.62%

Net Income After Taxes $81,288 $92,463 $144,449 $370,503 $704,467 $910,880 $1,014,055 $1,236,829 $1,476,804 $1,577,918 $1,532,145 $1,806,201 $10,948,002 25.63%
% of Total Sales 36.44% 35.14% 31.71% 28.96% 30.08% 28.58% 26.24% 25.73% 25.30% 24.86% 23.24% 24.01% 25.63%

*** BALANCE SHEET (Year 1 by month) ***

As of the Month Ending:
Assets Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
Current Assets
Cash ($193,776) ($299,956) ($535,313) ($713,939) ($934,229) ($997,128) ($818,916) ($332,398) $371,883 $1,140,974 $2,417,458 $3,891,073
Investments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accounts Receivable $223,060 $243,111 $359,358 $867,510 $1,810,564 $2,764,363 $3,525,579 $4,335,204 $5,321,297 $6,092,368 $6,470,447 $7,056,929
Notes Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Inventory $122,842 $323,992 $698,448 $1,209,419 $1,733,599 $2,274,021 $2,858,269 $3,390,159 $3,828,506 $4,218,811 $4,406,969 $4,660,864
Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Assets $152,126 $267,147 $522,493 $1,362,990 $2,609,934 $4,041,256 $5,564,932 $7,392,965 $9,521,686 $11,452,153 $13,294,874 $15,608,866

Plant & Equipment

Land $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Buildings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Building/Leasehold Improvements $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Machinery & Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Office Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Automobiles $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Net Plant & Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Other Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Assets $152,126 $267,147 $522,493 $1,362,990 $2,609,934 $4,041,256 $5,564,932 $7,392,965 $9,521,686 $11,452,153 $13,294,874 $15,608,866

Liabilities & Owners' Equity

Current Liabilities
Short Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accounts Payable $70,838 $93,396 $204,293 $674,287 $1,216,764 $1,737,206 $2,246,827 $2,838,031 $3,489,948 $3,842,497 $4,153,073 $4,660,864
Other Payables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Accrued Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Current Liabilities $70,838 $93,396 $204,293 $674,287 $1,216,764 $1,737,206 $2,246,827 $2,838,031 $3,489,948 $3,842,497 $4,153,073 $4,660,864

Long Term Debt $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Liabilities $70,838 $93,396 $204,293 $674,287 $1,216,764 $1,737,206 $2,246,827 $2,838,031 $3,489,948 $3,842,497 $4,153,073 $4,660,864

Owner/Stockholder Equity
Common Stock $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Retained Earnings $81,288 $173,751 $318,200 $688,703 $1,393,170 $2,304,050 $3,318,105 $4,554,934 $6,031,738 $7,609,656 $9,141,801 $10,948,002
Dividends Payable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Owners' Equity $81,288 $173,751 $318,200 $688,703 $1,393,170 $2,304,050 $3,318,105 $4,554,934 $6,031,738 $7,609,656 $9,141,801 $10,948,002

Total Liabilities & Equity $152,126 $267,147 $522,493 $1,362,990 $2,609,934 $4,041,256 $5,564,932 $7,392,965 $9,521,686 $11,452,153 $13,294,874 $15,608,866
*** CASH FLOWS (STATEMENT of CHANGES in FINANCIAL POSITION: Year 1 by month) ***

Sources of Cash: Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1
Operations during the year:
Net Income After Taxes $81,288 $92,463 $144,449 $370,503 $704,467 $910,880 $1,014,055 $1,236,829 $1,476,804 $1,577,918 $1,532,145 $1,806,201 $10,948,002
Add items not decreasing cash
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase in Accounts Payable $70,838 $22,558 $110,897 $469,994 $542,477 $520,442 $509,621 $591,204 $651,917 $352,549 $310,576 $507,791 $4,660,864
Increase in Other Payables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase in Accrued Liabilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Deduct items not increasing cash

Increase in Accounts Receivable $223,060 $20,051 $116,247 $508,152 $943,054 $953,799 $761,216 $809,625 $986,093 $771,071 $378,079 $586,482 $7,056,929
Increase in Inventory $122,842 $201,150 $374,456 $510,971 $524,180 $540,422 $584,248 $531,890 $438,347 $390,305 $188,158 $253,895 $4,660,864

Cash from Operations ($193,776) ($106,180) ($235,357) ($178,626) ($220,290) ($62,899) $178,212 $486,518 $704,281 $769,091 $1,276,484 $1,473,615 $3,891,073

Financing & Other:

Sale of Stock $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Proceeds from Short Term Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Proceeds from Long Term Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sale of Investments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Collection of Notes Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Reduction of Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Reduction of Other Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Cash from Operations & Financing ($193,776) ($106,180) ($235,357) ($178,626) ($220,290) ($62,899) $178,212 $486,518 $704,281 $769,091 $1,276,484 $1,473,615 $3,891,073

Applications of Cash:
Payment of Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchases of Fixed Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of Short Term Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Repayment of Long Term Loans $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Purchase of Investments $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase in Notes Receivable $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase in Other Current Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increase in Other Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Increase/(Decrease) in Cash ($193,776) ($106,180) ($235,357) ($178,626) ($220,290) ($62,899) $178,212 $486,518 $704,281 $769,091 $1,276,484 $1,473,615 $3,891,073

Change in Cash Balance

Ending Cash Balance ($193,776) ($299,956) ($535,313) ($713,939) ($934,229) ($997,128) ($818,916) ($332,398) $371,883 $1,140,974 $2,417,458 $3,891,073 $3,891,073
Beginning Cash Balance $0 ($193,776) ($299,956) ($535,313) ($713,939) ($934,229) ($997,128) ($818,916) ($332,398) $371,883 $1,140,974 $2,417,458 $0
Increase/(Decrease) in Cash ($193,776) ($106,180) ($235,357) ($178,626) ($220,290) ($62,899) $178,212 $486,518 $704,281 $769,091 $1,276,484 $1,473,615 $3,891,073

*** INCOME STATEMENT (Years 1 - 5) ***

% of Total % of Total % of Total % of Total % of Total
Sales Year 1 Sales Year 2 Sales Year 3 Sales Year 4 Sales Year 5 Sales
Seller Assisted Marketing Plan Fees $3,690,658 8.64% $8,341,494 5.13% $0 0.00% $0 0.00% $0 0.00%
Employee Educational Formats 1 & 2 $3,535,488 8.28% $20,448,723 12.58% $35,535,786 15.19% $37,245,102 15.63% $27,933,826 15.63%
Manager Educational Formats 3 & 4 $3,910,618 9.15% $22,618,417 13.92% $39,306,280 16.80% $41,196,962 17.29% $30,897,722 17.29%
Employer Educational Formats 5 & 6 $6,097,689 14.27% $24,417,255 15.03% $37,010,116 15.82% $37,381,100 15.69% $28,035,825 15.69%
Small Business Educational Format 7 $4,573,266 10.71% $18,312,938 11.27% $27,757,582 11.86% $28,035,820 11.77% $21,026,865 11.77%
Large Business Educational Format 8 $4,955,364 11.60% $17,910,564 11.02% $25,699,878 10.98% $25,699,878 10.79% $19,274,909 10.79%
Packaged Educational Formats 1, 3, 5 & 7 $7,120,635 16.67% $25,736,674 15.84% $36,929,567 15.78% $36,929,567 15.50% $27,697,175 15.50%
Packaged Educational Formats 2, 4, 6 & 8 $8,835,248 20.68% $24,714,680 15.21% $31,758,864 13.57% $31,758,864 13.33% $23,819,148 13.33%

Total Sales $42,718,966 100.00% $162,500,745 100.00% $233,998,073 100.00% $238,247,293 100.00% $178,685,470 100.00%

Cost of Goods Sold

Material $1,281,570 3.00% $1,320,017 0.81% $1,359,618 0.58% $1,400,407 0.59% $1,442,419 0.81%
Labor $23,690,598 55.46% $24,401,316 15.02% $25,133,355 10.74% $25,887,356 10.87% $26,663,977 14.92%

Total Variable COGS $24,972,168 58.46% $25,721,333 15.83% $26,492,973 11.32% $27,287,763 11.45% $28,106,396 15.73%

Total Fixed Cost of Goods & Services $255,856 0.60% $263,532 0.16% $271,438 0.12% $279,581 0.12% $287,968 0.16%

Total Cost of Goods Sold $25,228,024 59.06% $25,984,865 15.99% $26,764,411 11.44% $27,567,344 11.57% $28,394,364 15.89%

Gross Profit $17,490,942 40.94% $136,515,880 84.01% $207,233,662 88.56% $210,679,949 88.43% $150,291,106 84.11%

Operating Expenses
Sales & Marketing $1,083,949 2.54% $1,116,467 0.69% $1,149,961 0.49% $1,184,460 0.50% $1,219,994 0.68%
Research & Development $20,628 0.05% $22,072 0.01% $23,617 0.01% $25,270 0.01% $27,039 0.02%
G & A (without Depreciation) $71,754 0.17% $73,907 0.05% $76,124 0.03% $78,408 0.03% $80,760 0.05%
Depreciation $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00%

Total Operating Expenses $1,176,331 2.75% $1,212,446 0.75% $1,249,702 0.53% $1,288,138 0.54% $1,327,793 0.74%

Income From Operations $16,314,611 38.19% $135,303,434 83.26% $205,983,960 88.03% $209,391,811 87.89% $148,963,313 83.37%

Interest Income $25,691 0.06% $27,489 0.02% $29,413 0.01% $31,472 0.01% $33,675 0.02%
Interest Expense $0 0.00% $0 0.00% $0 0.00% $0 0.00% $0 0.00%
Income before Taxes $16,340,302 38.25% $135,330,923 83.28% $206,013,373 88.04% $209,423,283 87.90% $148,996,988 83.39%
Taxes on Income $5,392,300 12.62% $44,659,205 27.48% $67,984,413 29.05% $69,109,683 29.01% $49,169,006 27.52%

Net Income After Taxes $10,948,002 25.63% $90,671,718 55.80% $138,028,960 58.99% $140,313,600 58.89% $99,827,982 55.87%
*** BALANCE SHEET (Years 1 - 5) ***
As of the Year Ending:

Assets Year 1 Year 2 Year 3 Year 4 Year 5

Current Assets
Cash $3,891,073 $88,263,494 $220,415,962 $360,380,311 $465,103,785
Investments $0 $0 $0 $0 $0
Accounts Receivable $7,056,929 $13,356,226 $19,232,718 $19,581,969 $14,686,477
Notes Receivable $0 $0 $0 $0 $0
Inventory $4,660,864 $2,135,742 $2,199,815 $2,265,809 $2,333,783
Other Current Assets $0 $0 $0 $0 $0
Total Current Assets $15,608,866 $103,755,462 $241,848,495 $382,228,089 $482,124,045

Plant & Equipment

Land $0 $0 $0 $0 $0
Buildings $0 $0 $0 $0 $0
Building/Leasehold Improvements $0 $0 $0 $0 $0
Machinery & Equipment $0 $0 $0 $0 $0
Office Equipment $0 $0 $0 $0 $0
Automobiles $0 $0 $0 $0 $0
Accumulated Depreciation $0 $0 $0 $0 $0
Total Net Plant & Equipment $0 $0 $0 $0 $0

Other Assets $0 $0 $0 $0 $0
Total Assets $15,608,866 $103,755,462 $241,848,495 $382,228,089 $482,124,045

Liabilities & Owners' Equity

Current Liabilities
Short Term Debt $0 $0 $0 $0 $0
Accounts Payable $4,660,864 $2,135,742 $2,199,815 $2,265,809 $2,333,783
Other Payables $0 $0 $0 $0 $0
Accrued Liabilities $0 $0 $0 $0 $0
Total Current Liabilities $4,660,864 $2,135,742 $2,199,815 $2,265,809 $2,333,783

Long Term Debt $0 $0 $0 $0 $0

Total Liabilities $4,660,864 $2,135,742 $2,199,815 $2,265,809 $2,333,783

Owner/Stockholder Equity
Common Stock $0 $0 $0 $0 $0
Retained Earnings $10,948,002 $101,619,720 $239,648,680 $379,962,280 $479,790,262
Dividends Payable $0 $0 $0 $0 $0
Total Owners' Equity $10,948,002 $101,619,720 $239,648,680 $379,962,280 $479,790,262

Total Liabilities & Equity $15,608,866 $103,755,462 $241,848,495 $382,228,089 $482,124,045

*** CASH FLOWS (STATEMENT of CHANGES in FINANCIAL POSITION: Years 1 - 5) ***

Sources of Cash: Year 1 Year 2 Year 3 Year 4 Year 5

Operations during the year:
Net Income After Taxes $10,948,002 $90,671,718 $138,028,960 $140,313,600 $99,827,982
Add items not decreasing cash
Depreciation $0 $0 $0 $0 $0
Increase in Accounts Payable $4,660,864 ($2,525,122) $64,073 $65,994 $67,974
Increase in Other Payables $0 $0 $0 $0 $0
Increase in Accrued Liabilities $0 $0 $0 $0 $0

Deduct items not increasing cash

Increase in Accounts Receivable $7,056,929 $6,299,297 $5,876,492 $349,251 ($4,895,492)
Increase in Inventory $4,660,864 ($2,525,122) $64,073 $65,994 $67,974

Cash from Operations $3,891,073 $84,372,421 $132,152,468 $139,964,349 $104,723,474

Financing & Other:

Sale of Stock $0 $0 $0 $0 $0
Proceeds from Short Term Loans $0 $0 $0 $0 $0
Proceeds from Long Term Loans $0 $0 $0 $0 $0
Sale of Investments $0 $0 $0 $0 $0
Collection of Notes Receivable $0 $0 $0 $0 $0
Reduction of Other Current Assets $0 $0 $0 $0 $0
Reduction of Other Assets $0 $0 $0 $0 $0

Cash from Operations & Financing $3,891,073 $84,372,421 $132,152,468 $139,964,349 $104,723,474

Applications of Cash:
Payment of Dividends $0 $0 $0 $0 $0
Purchases of Fixed Assets $0 $0 $0 $0 $0
Repayment of Short Term Loans $0 $0 $0 $0 $0
Repayment of Long Term Loans $0 $0 $0 $0 $0
Purchase of Investments $0 $0 $0 $0 $0
Increase in Notes Receivable $0 $0 $0 $0 $0
Increase in Other Current Assets $0 $0 $0 $0 $0
Increase in Other Assets $0 $0 $0 $0 $0

Increase/(Decrease) in Cash $3,891,073 $84,372,421 $132,152,468 $139,964,349 $104,723,474

Change in Cash Balance

Ending Cash Balance $3,891,073 $88,263,494 $220,415,962 $360,380,311 $465,103,785
Beginning Cash Balance $0 $3,891,073 $88,263,494 $220,415,962 $360,380,311
Increase/(Decrease) in Cash $3,891,073 $84,372,421 $132,152,468 $139,964,349 $104,723,474
*** RATIO ANALYSIS (Years 1 - 5) ***

CAUTION: These ratios are valid only if you have completed your Budget,
Income Statement and Cash Flows statements and verified that
your Balance Sheets are in balance.

Ratios Year 1 Year 2 Year 3 Year 4 Year 5

Current Ratio 3.35 48.58 109.94 168.69 206.58 Current Assets / Current Liabilities
Quick Ratio (Acid Test) 2.35 47.58 108.94 167.69 205.58 Quick Assets (Cash + Receivables) / Current Liabilities
Return on Total Assets 70.14% 87.39% 57.07% 36.71% 20.71% Net Income After Taxes / Total Assets (at year end)
Total Assets Turnover 2.74 1.57 0.97 0.62 0.37 Total Sales / Total Assets (at year end)
Total Debt to Total Assets 0.30 0.02 0.01 0.01 0.00 Total Liabilities / Total Assets

Gross Profit Margin 40.94% 84.01% 88.56% 88.43% 84.11% Gross Profit (Net Sales) / Total Sales
Operating Profit Margin 38.19% 83.26% 88.03% 87.89% 83.37% Income From Operations (Before Interest & Taxes) / Total Sales
Net Profit Margin 25.63% 55.80% 58.99% 58.89% 55.87% Net Income After Taxes / Total Sales
Return on Sales 62.59% 66.42% 66.61% 66.60% 66.42% Net Income After Taxes / Gross Profit (Net Sales)

Return on Owners' Equity 100.00% 89.23% 57.60% 36.93% 20.81% Net Income After Taxes / Total Owners' Equity (at year end)
Total Debt to Owners' Equity 0.43 0.02 0.01 0.01 0.00 Total Liabilities / Total Owners' Equity

*** BREAK-EVEN ANALYSIS (Year 1 by month) ***

% of Total
Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Year 1 Sales
Sales $223,060 $263,161 $455,554 $1,279,466 $2,341,662 $3,187,064 $3,864,093 $4,806,314 $5,836,279 $6,348,456 $6,592,437 $7,521,420 $42,718,966

Fixed Costs
Fixed Cost of Goods & Services $21,036 $21,087 $21,139 $21,191 $21,243 $21,295 $21,347 $21,399 $21,451 $21,503 $21,556 $21,609 $255,856 0.60%
Sales & Marketing (w/o Commissions) $18,878 $18,923 $18,969 $19,015 $19,061 $19,107 $19,153 $19,199 $19,246 $19,293 $19,340 $19,387 $229,571 0.54%
Research & Development $1,697 $1,701 $1,705 $1,709 $1,713 $1,717 $1,721 $1,725 $1,729 $1,733 $1,737 $1,741 $20,628 0.05%
G & A (without Depreciation) $5,866 $5,885 $5,904 $5,924 $5,944 $5,965 $5,987 $6,009 $6,032 $6,055 $6,079 $6,104 $71,754 0.17%
Depreciation $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 0.00%
Less Reclassified Fixed Costs ($125) ($125) ($125) ($125) ($125) ($125) ($125) ($125) ($125) ($125) ($125) ($125) ($1,500) 0.00%

Total Fixed Costs $47,352 $47,471 $47,592 $47,714 $47,836 $47,959 $48,083 $48,207 $48,333 $48,459 $48,587 $48,716 $576,309 1.35%

Variable Costs
Material and Labor $49,802 $72,309 $183,154 $653,096 $1,195,521 $1,715,911 $2,225,480 $2,816,632 $3,468,497 $3,820,994 $4,131,517 $4,639,255 $24,972,168 58.46%
Commissions $4,461 $5,263 $9,111 $25,589 $46,833 $63,741 $77,282 $96,126 $116,726 $126,969 $131,849 $150,428 $854,378 2.00%
Plus Reclassified Fixed Costs $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $125 $1,500 0.00%

Total Variable Costs $54,388 $77,697 $192,390 $678,810 $1,242,479 $1,779,777 $2,302,887 $2,912,883 $3,585,348 $3,948,088 $4,263,491 $4,789,808 $25,828,046 60.46%

Income from Operations $121,320 $137,993 $215,572 $552,942 $1,051,347 $1,359,328 $1,513,123 $1,845,224 $2,202,598 $2,351,909 $2,280,359 $2,682,896 $16,314,611 38.19%

Interest Income(Expense) - "Fixed" $6 $12 $24 $48 $97 $195 $392 $789 $1,587 $3,193 $6,424 $12,924 $25,691 0.06%
Income Taxes - "Variable" $40,038 $45,542 $71,147 $182,487 $346,977 $448,643 $499,460 $609,184 $727,381 $777,184 $754,638 $889,619 $5,392,300 12.62%

Net Income After Taxes $81,288 $92,463 $144,449 $370,503 $704,467 $910,880 $1,014,055 $1,236,829 $1,476,804 $1,577,918 $1,532,145 $1,806,201 $10,948,002 25.63%

Income from Operations Analysis

Contribution Margin 75.62% 70.48% 57.77% 46.95% 46.94% 44.16% 40.40% 39.39% 38.57% 37.81% 35.33% 36.32% 39.54%
Break-Even Sales Volume $62,621 $67,358 $82,385 $101,636 $101,908 $108,612 $119,009 $122,369 $125,319 $128,164 $137,533 $134,138 $1,457,548 3.41%
Sales Volume Above Break-Even $160,439 $195,803 $373,169 $1,177,830 $2,239,754 $3,078,452 $3,745,084 $4,683,945 $5,710,960 $6,220,292 $6,454,904 $7,387,282 $41,261,418 96.59%

Net Income After Taxes Analysis

Contribution Margin 57.67% 53.17% 42.15% 32.68% 32.12% 30.08% 27.48% 26.72% 26.10% 25.57% 23.88% 24.49% 26.92%
Break-Even Sales Volume $82,122 $89,305 $112,967 $146,137 $149,218 $160,091 $176,419 $183,368 $191,229 $202,017 $230,359 $251,695 $2,236,513 5.24%
Sales Volume Above Break-Even $140,938 $173,856 $342,587 $1,133,329 $2,192,444 $3,026,973 $3,687,674 $4,622,946 $5,645,050 $6,146,439 $6,362,078 $7,269,725 $40,482,453 94.76%