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Lab 1

The document outlines a financial projection for a market with 52 million households, estimating an addressable market of 3.12 million households and expected sales of $160.99 million in Year 1. It details costs, including a total cost of goods sold of $131.61 million, resulting in a gross margin of $29.38 million and a net income of $10.01 million. Additionally, it discusses the impact of increasing the average sale price by 10%, leading to a projected net income increase of approximately 41.86%.

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31 views3 pages

Lab 1

The document outlines a financial projection for a market with 52 million households, estimating an addressable market of 3.12 million households and expected sales of $160.99 million in Year 1. It details costs, including a total cost of goods sold of $131.61 million, resulting in a gross margin of $29.38 million and a net income of $10.01 million. Additionally, it discusses the impact of increasing the average sale price by 10%, leading to a projected net income increase of approximately 41.86%.

Uploaded by

88nzk7cw4v
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Year 0 Year 1

Common Size
Total Market Size #Households 52,000,000
Adressable Market- Rate 6%
Adressable Market # of Households 3120000
Repurchase Rate - Monthly 2
Pepurchase Rate - Annual 24
Market Size- As Total # units 74880000

Market Size - Unit % 10.75%


Market Share in Unit - Expected Unit sales 8,049,600.00

Average Sale Price - Per Unit $ 20.00


Expected Sales - Total $ $ 160,992,000.00 100.00%

Cost of Goods Sold


Variable cost of production - Per unit $13.50
Variable cost of production - Total $ 108,669,600.00 67.50%
Variable marketing and selling expenses 5%
Variable marketing and selling expenses- Total $ 8,049,600.00 5.00%
Variable packaging costs - Per Unit 1.85
Variable packaging costs - Total $ 14,891,760.00 9.25%
Cost of Goods Sold $ 131,610,960.00 81.75%

Gross Margin $ 29,381,040.00 18.25%

Fixed Cost
Fixed marketing costs % of sales 4%
Fixed Marketing cost $ 6,439,680.00 4.00%
Fixed manufacturing costs $ 6,000,000.00 3.73%
Fixed G & A expenses $ 3,500,000.00 2.17%
Total Fixed Cost $ 15,939,680.00 9.90%

Operating Profits $ 13,441,360.00 8.35%

Average Tax rate 25.50%


Income Tax expenses $ 3,427,546.80 2.13%

Net Income $ 10,013,813.20 6.22%

Initial Investment $ 50,000,000.00

ROI 20.03%
Approximate change in net income $ 10,914,452.64
Approximate % change in net income 108.99%
Increasing initial selling
price by 10%
52,000,000
6%
3120000
2
24
74880000

10.75%
8,049,600.00

$ 22.00
$ 177,091,200.00

$13.50
$ 108,669,600.00
5%
$ 8,854,560.00
1.85
$ 14,891,760.00
$ 132,415,920.00

$ 44,675,280.00

4%
$ 7,083,648.00
$ 6,000,000.00
$ 3,500,000.00
$ 16,583,648.00

$ 28,091,632.00

25.50%
$ 7,163,366.16

$ 20,928,265.84

41.86%

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