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Financial information (a budget showing product launch expenses

 

Customer Question

Financial information (a budget showing product launch expenses and a unit forecast by quarter for 3 years)

My new product launch is prepackaged meals which will be distributed through Wal-Mart domestically and internationally(Mexico). Wal-Mart has promised to buy 1580 cases per store at 36 dollars/case. In the US, they have 3,499 stores. In Mexico, they have 633 stores. There are 12 meals per case.

Food cost comes in at 33% i.e. $24/case cost and $36/case sold to Wal-Mart
Labor cost is 21%
Advertising/promotion cost budgeted at 4% of sales
We expect to increase sales by 10% each year. Can You show show this in excel plus breakeven pt?

 

Optional Information:
Level/Year: MBA
Subject: Marketing

Submitted: 936 days and 13 hours ago.
Category: Homework
Value: $30
Status: CLOSED
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Expert:  Stephen, MBA replied936 days and 13 hours ago.

Hi there,

 

Did you still need help with this? When did you need it by? Also, how many years did you need to show it for?

 

Also, it says food cost is 33% of 36 is 24, but this is not correct. Can you plesae confirm this part of the question?

 

Steve

 

Customer replied936 days and 13 hours ago.

Yes, I need it by 5pm CST 11/1 needs to show three years The food cost was derived by sales of 235,028,160 minus cost of 156,685,440 = 78,342,720/235,028,160=.33

 

Ken

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Expert:  Stephen, MBA replied936 days and 13 hours ago.

are there fixed costs? are those numbers quarterly? annual?

 

 

Customer replied936 days and 13 hours ago.

no fixed cost quarterly for the next three years

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Expert:  Stephen, MBA replied936 days and 13 hours ago.

Okay. Is the 1580 per store an annual number, or a quarterly number?

Customer replied936 days and 13 hours ago.

annual

Accepted Answer

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Expert:  Stephen, MBA replied936 days and 12 hours ago.

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Expert TypeMBA
Category: Homework
Pos. Feedback: 98.6 %
Accepts: 719
Answered: 11/1/2010

Experience: MBA

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