financialhw

xlsx

School

Rasmussen College, Florida *

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Course

2089C

Subject

Finance

Date

Jan 9, 2024

Type

xlsx

Pages

3

Uploaded by AgentRiver9291

Report
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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