Nature View2

Nature View2 - 1st Year Cost(not one time) 7.11...

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Option 1 (In Millions) Year 2001 2002 2003 2004 2005 2006 Manufacturer Price $0.51 $0.56 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 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 (In Millions) 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 25.30 Gross Margin for 2001 30% Exhibit 3*SKU Variable Cost 5.45 6.53 7.84 9.41 11.29 13.55
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Unformatted text preview: 1st Year Cost(not one time) 7.11 .12M*4Regions+.16M SG&A Fixed Cost 0.64 0.64 0.64 0.64 0.64 0.64 (64Retail chains*8000 Nat. Avg.)/1M *2"semiannual" Trade Promotion 1.02 1.02 1.02 1.02 1.02 1.02 Revenue-Cost(1+(.08n))^n Profit 3.06 3.35 3.56 3.62 3.46 2.95 Profit - One Time 0.50 One-Time Cost Number of SKU 4 Retailers 64 Price/SKU 10,000 Total (MMs) 2.56 Option 3 (In Millions) Year 2001 2002 2003 2004 2005 2006 Exhibit 6 *1.15^n SKU's 1.80 2.07 2.38 2.74 3.15 3.62 Manufacturer Price $1.95 SKU's * Manufacturer Price(RP-Markups) Revenue 3.51 4.04 4.65 5.34 6.14 7.06 Gross Margin for 2001 34% Exhibit 3*SKU Variable Cost 2.07 2.38 2.74 3.15 3.62 4.16 1st Year Cost(not one time) 2.32 pg. 8 sets fixed at $250,000 Fixed Cost 0.25 0.25 0.25 0.25 0.25 0.25 Revenue-Cost(1+(.08n))^n Profit 1.19 1.20 1.16 1.06 0.88 0.58...
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