Unit Sales Forecast The number entered under Your Sales Forecast on the Marketing spreadsheet. If a number has not been entered, the Production spreadsheet will use the Computer Prediction.

Inventory On Hand Unsold inventory from last year.

Production Schedule Number of units scheduled for production. The maximum possibility: Two times the 1st Shift Capacity.

Production after Adj Accounts Payable (The A/P Lag entered on the Marketing spreadsheet) and other conditions affect the availability of parts needed to build a product. This line adjusts production forecasts to account for material shortfalls.

2nd Shift/Overtime % The percentage of scheduled production run that will be produced on 2nd Shift or Overtime.

Labor Cost per Unit The labor cost in dollars to produce each unit (including 2nd Shift /Overtime wages and benefits).

Material Cost per Unit Material cost for each unit.

Total Unit Cost Material cost plus labor cost.

Contribution Margin Gross profit made on each unit (unit cost divided by price). Unit cost is the sum of labor and material cost.