NET INCOME PER SHARE

12 Months Ended

May. 29, 2015

NOTE 10 – NET INCOME PER SHARE

Basic earnings per common share are computed by dividing earnings available to stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflects per share amounts that would have resulted if dilutive potential common stock equivalents had been converted to common stock, as prescribed by Statement of Financial Accounting Standards No. 128, “Earnings per Share”. At May 29, 2015, options on the 310,000 shares were included in the computation of diluted earnings per share because the options’ exercise price was less than the average market price of the common shares and were therefore dilutive. The dilutive effect of stock options was calculated using the Treasury Stock method. The following reconciles the information used to compute basic and diluted earnings per share:

	Average Common Stock Shares

	2015		2014

Basic weighted average shares outstanding		11,552,164		11,732,632
Effect of options		30,235		-
		11,582,399		11,732,632