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Sales & Profit Analysis Report

This document compares the profits of three distributors, Jinghua, FUNG's, and Wayip, with and without partnering with FEMA as an OEM customer. Without FEMA, the total profits of the three distributors are $7.23 million. With FEMA, total profits increase by $9.73 million to $16.96 million due to additional high margin sales through FEMA and price discounts passed on by distributors to FEMA. A sensitivity analysis shows the net profit increase varies linearly based on the percentage of orders FEMA places with the distributors.

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Pulkit Aggarwal
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73 views1 page

Sales & Profit Analysis Report

This document compares the profits of three distributors, Jinghua, FUNG's, and Wayip, with and without partnering with FEMA as an OEM customer. Without FEMA, the total profits of the three distributors are $7.23 million. With FEMA, total profits increase by $9.73 million to $16.96 million due to additional high margin sales through FEMA and price discounts passed on by distributors to FEMA. A sensitivity analysis shows the net profit increase varies linearly based on the percentage of orders FEMA places with the distributors.

Uploaded by

Pulkit Aggarwal
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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Parameters Domestic Commercial Industrial TOTAL

Without FEMA as OEM


Transfer Price $2500 $9000 $65000
Margins (in %) 20% 25% 30%

Units Sold by Jinghua 4354 units 876 units 37 units


Units Sold by FUNG's 3075 units 433 units 48 units
Units Sold by Wayip 3458 units 568 units 52 units
Total Units Sold ( without FEMA as OE 10887 units 1877 units 137 units 12901 units

Base Price (Transfer Price x 12.32) RMB 30800 RMB 110880 RMB 800800
Public Price (Base Price x 1.6) RMB 49280 RMB 177408 RMB 1281280

Revenue generated by Jinghua RMB 10885000 RMB 7884000 RMB 2405000 RMB 21174000
Revenue generated by FUNG's RMB 7687500 RMB 3897000 RMB 3120000 RMB 14704500
Revenue generated by Wayip RMB 8645000 RMB 5112000 RMB 3380000 RMB 17137000
Total Revenue ( without FEMA as OEM)RMB 27217500 RMB 16893000 RMB 8905000 RMB 53015500

Profit generated by Jinghua RMB 2177000 RMB 1971000 RMB 721500 RMB 4869500
Profit generated by FUNG's RMB 1537500 RMB 974250 RMB 936000 RMB 3447750
Profit generated by Wayip RMB 1729000 RMB 1278000 RMB 1014000 RMB 4021000

### ### ### ###


Total Profits ( without FEMA as OE
With FEMA as OEM
Prices (at 20% Discount) being sold by
Distributors to FEMA RMB 36960 RMB 133056 RMB 960960
Quantity being sold by Distributor 350 units 50 units 3 units
Profit by selling via Distributor to FEMA RMB 2587200 RMB 1663200 RMB 864864 RMB 5115264

Profit from Distributors without FEMA s RMB 2856300 RMB 2560050 RMB 1806636 RMB 7222986

Demand by FEMA at 50% 528 units 82 units 37 units


50%
Price for FEMA (@ 35% discount) RMB 32032 RMB 115315 RMB 832832

Cost Price for Gino SA RMB 25626 RMB 86486 RMB 582982

Profit from FEMA as OEM RMB 3379376 RMB 2349547 RMB 9119510 RMB 14848434

Total Profit to Gino SA ### ### ### ###


by catering to FEMA as OEM

Net Increase in Profits


RMB 9733170
with FEMA as OEM
Appendix II
Sensitivity Analysis
Percentage of
Input FEMA Net Increase in
takes from Profit
Gino SA
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%

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