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Gross Margin

1) The document presents a financial summary and projections for years 2021-2022, including the total market size, addressable market, expected unit sales, sales revenue, costs, profits, taxes, and return on investment. 2) It is projected that sales will generate $160.9 million in revenue in year 1, with a net income of $10 million and a return on investment of 20.03%. 3) With a 10% increase in sales, net income is projected to rise by 108.99% to $20.9 million and return on investment would rise to 42%.

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EDxColdBlooded
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39 views

Gross Margin

1) The document presents a financial summary and projections for years 2021-2022, including the total market size, addressable market, expected unit sales, sales revenue, costs, profits, taxes, and return on investment. 2) It is projected that sales will generate $160.9 million in revenue in year 1, with a net income of $10 million and a return on investment of 20.03%. 3) With a 10% increase in sales, net income is projected to rise by 108.99% to $20.9 million and return on investment would rise to 42%.

Uploaded by

EDxColdBlooded
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Year 0 Year 1

2021 2022
Common Size
Total Market Size - #Household 52,000,000
Addressable Market - Rate 6.00%
Addressable Market - #of Households 3,120,000
Repurchase rate - Monthly 2
Repurchase rate - Annual 24
Market size - As Total #units 74,880,000

Market shar - Unit % 10.75%


Market Share in Units - Expected unit sale 8,049,600

Average Sale Price - Per unit $ 20.00


Expected Sales - Total $ $ 160,992,000.00 100.00%

Cost of Goods Sold


Variable cost of Production - Per Unit $ 13.50
Variable cost of Production - Total $ 108,669,600.00 67.50%
Variable marketing and selling expenses 5%
Variable marketing and selling expenses - Total $ 8,049,600.00 5.00%
Variable Packaging costs - Per Unit $ 1.85
Variable Packaging costs - Total $ 14,891,760.00 9.25%
Cost of Goods Solds $ 131,610,960.00 81.75%

Gross Margin $ 29,381,040.00 18.25%

Fixed Costs
Fixed Marketing Cost as % of sales 4%
Fixed Marketing costs $ 6,439,680.00 4.00%
Fixed Manufacturing Cost $ 6,000,000.00 3.73%
Fixed General and Admin $ 3,500,000.00 2.17%
Total Fixed Costs $ 15,939,680.00 9.90%

Operating Profit $ 13,441,360.00 8.35%

Average Tax rate 25.50%


Income tax Expenses $ 3,427,546.80 2.13%
Net Income $ 10,013,813.20 6.22%

Initial Investment $ 50,000,000.00

Return On Investment (ROI) in %


20.03%
Net Income with 10% sales raise $20,928,265.84
% of increment in Net income 108.99
Return On Investomer (ROI) 42%

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