Joshua Metayer
MGT340
Energy Gels: A New Product Introduction
KEY ASSUMPTIONS
We assume the Energy Gel division will pay their share of operational costs based on the
percentage of units produced. This is calculated based on the overall percentage of energy gel
units produced in direct comparison to the value of total units produced after the time assumption
is articulated into the equation.
Time Assumption: We assume the figure given in Exhibit 5 is the total number
of units to be produced. Because the energy gel product takes half the
production time in comparison to the energy bar, we multiply the given value
by half.
We assume the growth of Selling and G&A Expenses to grow in proportion to sales. For years
2006-2010 we assume a percentage of sales ratio of 3.6% for selling expenses and a percentage
of sales ratio ranging from 7.9%-7.1% for general and administrative expenses. Both values were
approximated by observing pro forma data as outlined in Exhibit 4.
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- Fall '13
- Marketing, Multiplication, Energy Gel, Energy Bars division, Energy Gel division
