In 2018 economy grew 7% in real, inflation adjusted terms. For 2019 expectations of economic performance are high, credit both to businesses and consumers is accelerating and other indicators are also more positive than last year. If you sold 71000 bottles in 2018 in the domestic market, how many bottles will you likely sell in 2019 to the same domestic market segments if such high expectations materialize?
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.
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
In 2018 economy grew 7% in real, inflation adjusted terms. For 2019 expectations of economic performance are high, credit both to businesses and consumers is accelerating and other indicators are also more positive than last year.
If you sold 71000 bottles in 2018 in the domestic market, how many bottles will you likely sell in 2019 to the same domestic market segments if such high expectations materialize?
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