Dabbiie (1) - Assumption for CostCo Sales Growth The sale...

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Assumption for CostCo Sales Growth – The sale growth has been assumed at slightly higher than the 2010 sales growth considering the acquisition of PriceSmart and access to new markets, customers and cross selling of products. Therefore we have assumed sales growth of 10-11% in the first 3 years as compared to sales growth of 9% during FY10 over FY09. The sales growth has been increase by 1-2% in the first three years from the historical growth rate, considering the new market and access to new customers. Gross Profit – The ratio has been increased by almost 4% considering the synergies expected out of the acquisition and increase in scale of operations. With the increase in scale of operations, the fixed expenses doesn’t increase in the same proportion and also there will be synergies in terms of warehousing expense and shipping expense, considering the usage of PriceSmart facilities. Depreciation and interest –
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Dabbiie (1) - Assumption for CostCo Sales Growth The sale...

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