Assume this is January 2019. You’re running a Wine company that has 80% domestic sales and 20% export sales as measured by shipped bottles. Of the domestic sales, 50% is sold via the restaurant channel, 30% is sold to supermarket chains. You production capacity for this year 2019 is for 100,000(Q) bottles (from grapes processed in 2018) if you bottle this already this year. This wine is currently kept in wine casks (տակառ)․ If aged the wine will be more valuable. Land, cellar and casket capacity has been fixed since the establishment of your château (գինետուն). These are prices received (P) and costs per bottle (AC) per sales channel: Domestic Restaurant channel:  Price – 3300AMD, Total Cost (AC) – 1900AMD Domestic Retail/supermarket channel:  Price – 3600AMD, Total Cost – 1900AMD Export channel:  Price – 13USD, Total Cost (incl. shipment) – 4100AMD Current exchange rate is 485AMD per 1 USD   Please calculate profit margin per Sales channel (in percent)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assume this is January 2019.

You’re running a Wine company that has 80% domestic sales and 20% export sales as measured by shipped bottles.

Of the domestic sales, 50% is sold via the restaurant channel, 30% is sold to supermarket chains.

You production capacity for this year 2019 is for 100,000(Q) bottles (from grapes processed in 2018) if you bottle this already this year. This wine is currently kept in wine casks (տակառ)․ If aged the wine will be more valuable. Land, cellar and casket capacity has been fixed since the establishment of your château (գինետուն).

These are prices received (P) and costs per bottle (AC) per sales channel:

Domestic Restaurant channel:  Price – 3300AMD, Total Cost (AC) – 1900AMD

Domestic Retail/supermarket channel:  Price – 3600AMD, Total Cost – 1900AMD

Export channel:  Price – 13USD, Total Cost (incl. shipment) – 4100AMD

Current exchange rate is 485AMD per 1 USD

 

Please calculate profit margin per Sales channel (in percent) 

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