financialhw
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School
Rasmussen College, Florida *
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Course
2089C
Subject
Finance
Date
Jan 9, 2024
Type
xlsx
Pages
3
Uploaded by AgentRiver9291
Gross Margin Per Unit Calculation
Price Per Unit
$
18.46
Cost Per Unit
$
12.00
Margin $ Per Unit
$
6.46
Margin % Per Unit
35%
Break Even Analysis
Number of Units Sold
26,309.52
Price Per Unit
$
18.46
Total Revenue
$
485,714.29
Cost of Goods Sold
$
315,714.29
Gross Profit
$
170,000.00
Gross Margin %
35%
Fixed Costs
Sales Rep
$
50,000.00
San Diego Spirits Festival
$
90,000.00
Gourmet Retailer Magazine
$
30,000.00
Total Fixed Costs
$
170,000.00
Profit
$
-
Margin %
0%
Pro Forma Income Statement
Estimated Market Size
$
900,000,000.00
Estimated Market Share
1%
Estimated Year 1 Revenue
$
9,000,000.00
Price Per Unit
$
18.46
Number of Units
487,500.00
Cost Per Unit
$
12.00
Total Cost of Sales
$
5,850,000.00
Gross Profit
$
3,150,000.00
Gross Margin %
35%
The price per unit was calculated based o
unit and the 35% gross margin. This impli
$18.46
The number of units sold to get to break e
fixed costs would be 26,309.52. This is bas
of $18.46, a gross margin of 35%, and my fi
the San Diego Spirits Festival, and the Gou
advertisement.
I assumed a market size of $900 million an
Based on this, my year one sales would be
price per unit calculated above, I would se
forma income statement. At a 35% gross m
would be $3.15 million. Including my selec
rep, the San Diego Spirits Festival, and the
advertisement, my overall profit would be
overall profit margin would be 33%.
Fixed Costs
Sales Rep
$
50,000.00
San Diego Spirits Festival
$
90,000.00
Gourmet Retailer Magazine
$
30,000.00
Total Fixed Costs
$
170,000.00
Profit
$
2,980,000.00
Margin %
33%
on the provided $12 cost per
ies a sales price per unit of
even based on my selected
sed on a sales price per unit
fixed costs of one sales rep,
urmet Retailer Magazine
nd a market share of 1%.
e $9.0 million. Using the
ell 487,500 units in my pro
margin, my gross profit
cted fixed costs of one sales
e Gourmet Retailer Magazine
e $2.98 million and my
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