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Posted on Aug 31, 2024

5. 6 Q1a. What are Seahorses fixed costs per year? 7 Q1b. What are Seahorses variable costs per year? 28 Q1c What is total cost

5. 6 Q1a. What are Seahorses fixed costs per year? 7 Q1b. What are Seahorses variable costs per year? 28 Q1c What is total cost per year? 29 Q2. What is Seashorses profit by year? Q3a. What is the projected LTV each year of a 'Big Belly' customer 30 given they stay a customer for 5 years? Q3b. Based on what you found, write an explanation what this 31 means for CPA? 32 Q3c. How can BigBelly improve the LTV of a customer? Q4. Plot the average COGs by quantity sold. Is Seahorse experiencing economies of scale, diseconomies of scale or constant returns to 33 scale? Q5. Is the 3.5M acquisition value in 2004 realistic? Why or why not 34 (from an economic perspective)? Q6. Plot the breakeven graph. When does Seahorse breakeven? How 35 realistic is this? 36 PaHorse Power Financial Summary 2006 Year BigBelly (small) units BigBelly average price BigBelly average COGS 2004 175 $3,800 $1,695 2005 570 $2,950 $1,500 1,293 $2,750 $1,183 27 $4,500 $3,180 $786,500 $9,450 $6,660 $802,610 285 $3,900 $3,180 $2,791,422 $45,749 $48,235 $2,885,406 663 $3,400 $2,210 $5,809,618 $361,927 $339,222 $6,510,767 Hippo (large) units Hippo average price Hippo average COGS Total direct sales rev's BigBelly license revenues Hippo license revenues Total gross revenues Expenses: R&D, Product development Sales & marketing General and Administration Total average COGS Other variable expenses/adjustments EBITDA Funding needs (equity/ debt) Potential acquisition value $153,745 $72,900 $244,100 $382,485 $57,590 $108,210) $800,000 $3,500,000 $411,441 $428,895 $363,975 $1,760,249 $60,094 ($139,248) $1,000,000 $4,328,110 $635,511 $761,332 $477,229 $2,995,137 $45,298 $1,596,260 $9.766,150 2004 2005 2006 2008 2007 1,876 $2,350 $723 2,171 $2,150 $723 2009 2,606 $1,950 $723 942 $2,900 $1,710 $7,138,861 $1,223,951 $1,024,997 $9,387,809 1227 $2,650 $1,505 $7,920,163 $1,615,375 $1,528,664 $11,064,202 1592 $2,250 $1,160 $8,664,398 $2,129,655 $2,117,487 $12,911,541 $706,504 $997,487 $506,842 $2,966,367 $9,064 $4,201,545 $914,514 $1,113,467 $539,397 $3,416,715 $17,196 $5,062,913 $1,627,576 $1,245,191 $574,850 $3,731,099 $26,323 $5,706,502 $16,428,666 $22,128,405 $25,823,082 2007 2008 2009 5. 6 Q1a. What are Seahorses fixed costs per year? 7 Q1b. What are Seahorses variable costs per year? 28 Q1c What is total cost per year? 29 Q2. What is Seashorses profit by year? Q3a. What is the projected LTV each year of a 'Big Belly' customer 30 given they stay a customer for 5 years? Q3b. Based on what you found, write an explanation what this 31 means for CPA? 32 Q3c. How can BigBelly improve the LTV of a customer? Q4. Plot the average COGs by quantity sold. Is Seahorse experiencing economies of scale, diseconomies of scale or constant returns to 33 scale? Q5. Is the 3.5M acquisition value in 2004 realistic? Why or why not 34 (from an economic perspective)? Q6. Plot the breakeven graph. When does Seahorse breakeven? How 35 realistic is this? 36 PaHorse Power Financial Summary 2006 Year BigBelly (small) units BigBelly average price BigBelly average COGS 2004 175 $3,800 $1,695 2005 570 $2,950 $1,500 1,293 $2,750 $1,183 27 $4,500 $3,180 $786,500 $9,450 $6,660 $802,610 285 $3,900 $3,180 $2,791,422 $45,749 $48,235 $2,885,406 663 $3,400 $2,210 $5,809,618 $361,927 $339,222 $6,510,767 Hippo (large) units Hippo average price Hippo average COGS Total direct sales rev's BigBelly license revenues Hippo license revenues Total gross revenues Expenses: R&D, Product development Sales & marketing General and Administration Total average COGS Other variable expenses/adjustments EBITDA Funding needs (equity/ debt) Potential acquisition value $153,745 $72,900 $244,100 $382,485 $57,590 $108,210) $800,000 $3,500,000 $411,441 $428,895 $363,975 $1,760,249 $60,094 ($139,248) $1,000,000 $4,328,110 $635,511 $761,332 $477,229 $2,995,137 $45,298 $1,596,260 $9.766,150 2004 2005 2006 2008 2007 1,876 $2,350 $723 2,171 $2,150 $723 2009 2,606 $1,950 $723 942 $2,900 $1,710 $7,138,861 $1,223,951 $1,024,997 $9,387,809 1227 $2,650 $1,505 $7,920,163 $1,615,375 $1,528,664 $11,064,202 1592 $2,250 $1,160 $8,664,398 $2,129,655 $2,117,487 $12,911,541 $706,504 $997,487 $506,842 $2,966,367 $9,064 $4,201,545 $914,514 $1,113,467 $539,397 $3,416,715 $17,196 $5,062,913 $1,627,576 $1,245,191 $574,850 $3,731,099 $26,323 $5,706,502 $16,428,666 $22,128,405 $25,823,082 2007 2008 2009