What would be the effect on profitability of

reducing labor costs by ▲L%?

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:

Previous period labor as % of direct job costs:

Expected reduction in labor costs (▲L%):

Annual Labor Cost Savings:

New Cost of Goods Sold:

The reduction in labor costs could result from reduced callbacks or better sucontractor management.