What would be the effect on profitability of

reducing material costs by ▲MC%?

Previous period total sales:

% Sales

Previous period Direct Job Costs (Cost of Goods Sold):

Previous period Fixed Costs (Operating and Overhead):

Previous period Break-even Sales:

Materials as % of total direct job costs (M%):

Target reduction in material costs (▲MC%):

Annual Materials Cost savings:

New Cost of Goods Sold:

Reduction in material costs could result from reduced slippage, product changes, and/or supplier negotiation.