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    Calculation - Mountain Man

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    - The document provides revenue and cost projections for a company introducing a new light beer brand called Mountain Man Light. - In 2006, revenue from Mountain Man Lager was $50.44 million from sales of 520,000 barrels at $97 per barrel. Projected sales of Mountain Man Light were 48,735 barrels for estimated revenues of $4.72 million. - Fixed costs to launch Mountain Man Light were $1.65 million for advertising and annual costs. Variable costs per barrel were $71.62. The breakeven point was 65,012 barrels at $6.3 million in revenue. - Projections showed Mountain Man Light sales and revenues increasing annually from 2007 to 2010 as its market share

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    Calculation - Mountain Man

    Uploaded by

    vi vi
    112 views6 pages
    - The document provides revenue and cost projections for a company introducing a new light beer brand called Mountain Man Light. - In 2006, revenue from Mountain Man Lager was $50.44 million from sales of 520,000 barrels at $97 per barrel. Projected sales of Mountain Man Light were 48,735 barrels for estimated revenues of $4.72 million. - Fixed costs to launch Mountain Man Light were $1.65 million for advertising and annual costs. Variable costs per barrel were $71.62. The breakeven point was 65,012 barrels at $6.3 million in revenue. - Projections showed Mountain Man Light sales and revenues increasing annually from 2007 to 2010 as its market share

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    calculation_mountain man

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    - The document provides revenue and cost projections for a company introducing a new light beer brand called Mountain Man Light. - In 2006, revenue from Mountain Man Lager was $50.44 million from sales of 520,000 barrels at $97 per barrel. Projected sales of Mountain Man Light were 48,735 barrels for estimated revenues of $4.72 million. - Fixed costs to launch Mountain Man Light were $1.65 million for advertising and annual costs. Variable costs per barrel were $71.62. The breakeven point was 65,012 barrels at $6.3 million in revenue. - Projections showed Mountain Man Light sales and revenues increasing annually from 2007 to 2010 as its market share

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    112 views6 pages

    Calculation - Mountain Man

    Uploaded by

    vi vi
    - The document provides revenue and cost projections for a company introducing a new light beer brand called Mountain Man Light. - In 2006, revenue from Mountain Man Lager was $50.44 million from sales of 520,000 barrels at $97 per barrel. Projected sales of Mountain Man Light were 48,735 barrels for estimated revenues of $4.72 million. - Fixed costs to launch Mountain Man Light were $1.65 million for advertising and annual costs. Variable costs per barrel were $71.62. The breakeven point was 65,012 barrels at $6.3 million in revenue. - Projections showed Mountain Man Light sales and revenues increasing annually from 2007 to 2010 as its market share

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 6

    Revenue $ 50,440,000.

    00
    No of barrels sold 520,000.00
    Price per barrel $ 97.00

    LIGHT BEER 2005 2006


    Light Beer Consumption (East Central
    Region) 18,744,303 19,494,075
    CAGR 4%
    Projected market share 0.25%
    Projected sales on MML (in barrels) 48,735
    Estimated Revenues ($97) 4,727,313.22

    FIXED COST
    Without Cannibalization
    One time advertisment cost 750,000.00
    Annual incremental SG&A cost 900,000.00
    Total Fixed cost 1,650,000.00

    VARIABLE COST
    Cost per Mountain Man light beer (@71.62) 3,490,414.15

    Breakeven point (Units) 65,012


    Breakeven Revenue (@$97) 6,306,146.57

    REVENUE WITH CANNIBALIZATION


    2005 2006
    Revenue from Lager after 2% decline in sales $ 50,440,000.00 49,431,200.00
    5% Cannibalization 46,959,640.00
    20% Cannibalization 39,544,960.00
    9,886,240.00
    39,343,200.00
    2,155,200.32
    431,040.06400

    FIXED COST

    One time advertisment cost 750,000.00


    Annual incremental SG&A cost 900,000.00
    2% decline in revenue 1,008,800.00
    Cannibalization cost - 5% 2,522,000.00
    Cannibalization cost - 20% 10,088,000.00
    Total fixed cost - 5% 5,180,800.00
    Total fixed cost - 20% 12,746,800.00
    2,419,102.40
    2007 2008 2009 2010

    20,273,838 21,084,792 21,928,183 22,805,311


    4% 4% 4% 4%
    0.50% 0.75% 1% 1.25%
    101,369 158,136 219,282 285,066
    9,832,811.49 15,339,185.93 21,270,337.82 27,651,439.16

    900,000.00 900,000.00 900,000.00 900,000.00


    900,000.00 900,000.00 900,000.00 900,000.00

    7,260,061.43 11,325,695.83 15,704,964.89 20,416,454.36

    35,461 35,461 35,461 35,461


    3,439,716.31 3,439,716.31 3,439,716.31 3,439,716.31

    2007 2008 2009 2010


    48,442,576.00 47,473,724.48 46,524,249.99 45,593,764.99 1,008,800.00
    46,020,447.20 45,100,038.26 44,198,037.49 43,314,076.74 219,918.40
    38,754,060.80 37,978,979.58 37,219,399.99 36,475,011.99
    9,688,515.20 9,494,744.90 9,304,850.00 9,118,753.00
    30,687,696.00
    2,112,096.31
    422,419.26272
    6,689,917.7280000
    1,337,983.55

    900,000.00 900,000.00 900,000.00 900,000.00


    988,624.00 968,851.52 949,474.49 930,485.00
    2,471,560.00 2,422,128.80 2,373,686.22 2,326,212.50
    9,886,240.00 9,688,515.20 9,494,744.90 9,304,850.00
    4,360,184.00 4,290,980.32 4,223,160.71 4,156,697.50
    11,774,864.00 11,557,366.72 11,344,219.39 11,135,335.00
    988,624.00 968,851.52
    215,520.03 213,147.33
    46,892.41

    1,997,424.00
    3,647,424.00
    Revenue of Mountain Man Lager 50440000
    No of barrels sold of Mountain Man Lager 520000
    Price per barrel 97

    LIGHT BEER 2005 2006


    Light Beer Consumption (Industry) 18744303 19494075
    CAGR given 4%

    Projected market share of Mountain Man Light 0.25%


    Projected sales of Mountain Man Light (in
    Barrel) 48735
    Estimated Revenues ($97) 4,727,313.22
    2007 2008 2009 2010
    20273838 21084792 21928183 22805311
    4% 4% 4% 4%

    0.50% 0.75% 1% 1.25%

    101369 158136 219282 285066


    9,832,811.49 15,339,185.93 21,270,337.82 27,651,439.16

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