Nature View Farms

Nature View Farms - Nature View Farms Question 2 Option 1...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Nature View Farms Question 2 Option 1 Option 1 (In Millions) Year 2001 2002 2003 2004 2005 2006 Manufacturer Price $0.51 Exhibit 6 *1.2^n SKU's 35.00 42.00 50.40 60.48 72.58 87.09 Gross Margin for 2001 19% SKU's * Manufacturer Price(RP-Markups) Revenue 17.73 21.28 25.54 30.64 36.77 44.13 1st Year Cost(not one time) 14.44 Exhibit 3*SKU Variable Cost 10.85 13.02 15.62 18.75 22.50 27.00 1.2M/Region*2 Region +.36M SG&A Fixed Cost 2.72 2.72 2.72 2.72 2.72 2.72 (11NE*7,500+9W *15,000)/1M *4Quarters Trade Promotion 0.87 0.87 0.87 0.87 0.87 0.87 Revenue-Cost(1+(.08n))^n Profit 3.29 3.34 3.13 2.50 1.28-0.82 Profit- One Time 2.09 n=0 for 2001, n=1 for 2002, n=3 for 2003, etc. One-Time Cost Number of SKU 6 NE Retailers 11 West Retailers 9 Price/SKU 10,000 Total (MMs) 1.2 Option 2 Option 2 (In M illions) Year 2001 2002 2003 2004 2005 2006 Exhibit 6 *1.2^n SKU 's 5.50 6.60 7.92 9.50 11.40 13.69 Manufacturer Price $1.85 SKU 's * Manufacturer Price(RP-Markups) Revenue 10.17 12.20 14.64 17.57 21.08 25.3025....
View Full Document

This document was uploaded on 11/04/2011 for the course BUSI 563 at UNC.

Page1 / 5

Nature View Farms - Nature View Farms Question 2 Option 1...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online