Rowe Pottery Works, Inc. (RPW) is a company that should be pulling in a lot of revenue due to sales. Since RPW is a manufacturing company, their sales minus Cost Of Goods Sold results in Gross Profit. However, for RPW there is a rather large, and decreasing, variance between 1994 and 1996. Unfortunately, every year the variance is unfavorable to RPW, which means the cost was higher than expected. I think it is due to the standardized cost approach the accountants are currently taking. The standard cost and the actual cost are what produce the variance almost every year. This might be, in part, due to the different jobs RPW accepts and the cost associated with each part sold. The final product might end up costing more for some products and less for others resulting in a variance almost every time. The production cost for the new kiln is pretty high for every period but it does however bring in a lot of revenue every year. Each period since June of 1994, RPW has produced well over 30,000 units and yet every quarter it seems the more pieces produced RPW had, the less cash was tied up in inventory. This tells me that there is something wrong with their variable costs most likely. It seems to be fluctuating rather oddly with less pieces produced taking on a higher cost. After having calculated the costs per year, in the excel sheet, we see that after seven years of use the new kiln will end up turning a $460,000 dollar profit for the company, after deduction of the loan repayment, including interest, and all the costs involved except for two. In the evaluation of the new kiln I found depreciation was not factored in nor was there an amount present for the major overhaul needed after the end of the 7 years. If the amount of repairs needed at the end of the seventh year is significantly less than $460,000 dollars, the new kiln would be a worthy investment for the