Kris Beaudo, Steve Risler, Lisa Schlais, and Mary Stuiber
Sales Plan for Three Ladies and Three Ladies and
a Little Mana Little Man
Loan Situation
Total Loan Payments :$358,327.67
Interest is compounded monthly
Total Interest Payments: $158,327.67
APR is 6.44%
Loan Details
Rate of Depreciation
Depreciation Calculations
Formula
M= 0-300,000
30-0
M= -300000
30
M+ $10,000 annual depreciation
y-300,000= 30000(x-0)
y-300000=30000x
y= 30000x + 300000
Points of originPurchase price - $330,000…..(30,000 allocated to land)
Straight-line method- 30 years
year depr value1 $3,571 $25,0002 $3,571 $21,4293 $3,571 $17,8584 $3,571 $14,2875 $3,571 $10,7166 $3,571 $7,1457 $3,571 $3,574
Points of origin
Fixed & Variable Costs
Item: Figures:Building: $300,000Loan (Building): $200,000Inventory: $100,000Total Sales for Year: $400,000Margin Cost for Wine: Range from 25% to 40%
Cost Assumptions
Inventory Wine A Wine B Wine C Wine DCost of inventory $9.25 $19.00 $25.00 $32.50 Cost of inventory $8.25 $16.50 $21.50 $26.00 Retail price of inventory $12.50 $26.00 $35.00 $46.00
Profit (under 200 units) $3.25 $7.00 $10.00 $13.50 Profit (over 200 units) $4.25 $9.50 $13.50 $20.00
GPM % 26.00% 26.92% 28.57% 29.35%GPM % 34.00% 36.54% 38.57% 43.48%
Monthly Profit and Loss
Profit ExpensesProfit / (Loss)
Jan $3,084 $4,033 ($949)Feb $3,572 $4,033 ($461)Mar $5,395 $4,033 $1,362 Apr $3,980 $4,033 ($53)May $4,191 $4,033 $158 Jun $5,585 $4,033 $1,552 Jul $6,181 $4,033 $2,148
Aug $6,570 $4,033 $2,537 Sep $6,988 $4,033 $2,955 Oct $11,047 $4,033 $7,014 Nov $7,924 $4,033 $3,891 Dec $8,447 $4,033 $4,414
TOTALS $72,966 $48,396 $24,570
Wine Profits
Revenue – Cost – ExpensesEXAMPLE – Wine #A (over 200):
$13.50x = $8.75x + $4,408$4.75x = $4,408
X = 928 units
Break Even Analysis - Units
Supply And Demand Equilibrium
Demand Curve Wine A
Price $29 $20 $14 $10 $9
Qty 50 100 200 350 500
Supply Curve Wine A
Price $10 $12 $15 $21 $29
Qty 50 200 300 400 450
Demand Curve Wine B
Price $40 $33 $27 $24 $22
Qty 50 100 200 350 500
Supply Curve Wine B
Price $24 $26 $29 $34 $40
Qty 50 200 300 400 450
Supply And Demand Equilibrium
Demand Curve Wine C
Price $50 $42 $37 $34 $33
Qty 50 100 200 350 500
Supply Curve Wine C
Price $31 $33 $35 $40 $50
Qty 50 200 300 400 450
Demand Curve Wine D
Price $65 $58 $50 $43 $39
Qty 50 100 200 350 500
Supply Curve Wine D
Price $41 $44 $47 $55 $65
Qty 50 200 300 400 450
Profit Maximization of Wines A and B
x y p0 0 09.80 0 46.550 50 337.507.40 25 203.09
Profit Maximization of Wines C and D
The Matrix- Reference
Cost of Goods Sold Matrix
Cost and Retail Prices
Total Retail Revenue Matrix
Cost and Retail Prices
Three Ladies and Three Ladies and a Little Mana Little Man
WineWine