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FT MBA Exam Spreadsheet Clean Edge Razor

The document provides profit and loss forecasts for two scenarios - Niche and Mainstream - for Clean Edge, a razor company, over two years. In the Niche scenario, Clean Edge is projected to have an operating profit of $8.16 million in Year 1 and $38.47 million in Year 2. The operating profit as a percentage of sales is projected to be 26.9% in Year 1 and 79% in Year 2 under the Niche scenario.

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Doshi Vaibhav
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309 views

FT MBA Exam Spreadsheet Clean Edge Razor

The document provides profit and loss forecasts for two scenarios - Niche and Mainstream - for Clean Edge, a razor company, over two years. In the Niche scenario, Clean Edge is projected to have an operating profit of $8.16 million in Year 1 and $38.47 million in Year 2. The operating profit as a percentage of sales is projected to be 26.9% in Year 1 and 79% in Year 2 under the Niche scenario.

Uploaded by

Doshi Vaibhav
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Profit & Loss Forecasts for Clean Edge Under Niche and Mainstream Scenarios ($ millions)

Niche
Source of Data

1
2
3
4
5

Unit Sales - Razors


Unit sales - Cartridges
Dollar Sales - Razors
Dollar Sales - Cartridges

6
7
8
9
10

Production Costs - Razors


Production Costs - Cartridges
Capacity Costs
Advertising & Promotion

11
12
13
14
15

Operating Profit

Year 1

Exhibit 7

9.09
7.35

Total Dollar Sales

Total Costs

Operating Profit as % of Sales


Cost of Cannibalization - Razors
Cost of Cannibalization - Cartridges
Profit after Cannibalization

5
2.43

Mainstream
Year 2

1.00
4.00
9.09
29.40
38.49

1.50
10.00
13.64
73.50
87.14

5.00
9.72
0.61
15.00
30.3

7.50
24.30
0.87
16.00
48.7

8.16
26.9%

38.47
79.0%

Year 1

7.83
6.22

4.74
2.24

Year 2

3.30
9.90
25.84
61.58
87.42

4.00
21.90
31.32
136.22
167.54

15.64
22.18
1.71
42.00
81.5

18.96
49.06
2.45
39.00
109.5

5.89
7.2%

58.07
53.1%

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