Production workers and raw material costs are part of Cost of Goods Sold.
Here are possible Annual Income Statements for Valence producing 3000
laptop batteries per day (1M per year) and at 6000 laptop batteries per day (2M per year).
(numbers are in 1000 USD increments):
Revenues $75,0000 $150,000
Cost of Goods Sold $37,500 75,000
SG&A $10,000 12,000
R&D 15,000 15,000
Operating Income 12,000 48,000
Interest Expense 3,000 3,000
Depreciation 7,000 7,000
Before-tax Profit 2,000 38,000
Taxes 1,300 2,500
After-tax Profit 700 35,500
The Cost of Goods Sold includes production labor and cost of
materials, returns, etc. and is based on a gross margin of 50%.
If half the CGS was labor, then the cost per worker for 120 workers
is $150,000 per worker for the first case.
I broke out Depreciation as a separate line item.
This depreciation seems somewhat reasonable, but could be high.
I don't know the useful life of the equipment. Also the prior
capitalized R&D will have to be depreciated, and I haven't included
an estimate for that.
Taxes are estimated using the NI tax info in post #3244. I ignored
tax loss carryforward for this exercise.
Paul
|
