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AB Chemicals Baseline Scenario 1 Scenario 2 (increase price) (increase price, distributor support cost & Retailer promo cost) Unit Cost $3.00 $3.00 $3.00 Unit Revenue
| AB Chemicals | ||||
| Baseline | Scenario 1 | Scenario 2 | ||
| (increase price) | (increase price, distributor support cost & Retailer promo cost) | |||
| Unit Cost | $3.00 | $3.00 | $3.00 | |
| Unit Revenue (price) | $5.00 | $10.00 | $10.00 | |
| Share of Market Potential | 5.00% | 2.00% | 2.00% | |
| Sales Volume | 2,00,000 | |||
| Sales Revenue | ||||
| Gross Margin % | ||||
| Gross Margin $ | ||||
| Distributor Support Costs (10% sales revenue) | 15% sales revenue | |||
| Retailer Promotion Costs (15% sales revenue) | 20% sales revenue | |||
| Operating Margin $ (Year 1 Margin) | ||||
| Growth Rate (every year) | 5.00% | 5.00% | 5.00% | |
| Year 2 Margin | ||||
| Year 3 Margin | ||||
| Wholesaler/Distributor (aggregated) | ||||
| Purchase Costs (i.e., sales revenue of producer) | $0 | $0 | $0 | |
| Wholesaler/Distributor Markup (15%) | ||||
| Sales Revenue | ||||
| Operating Margin (38% of Markup) | ||||
| Distributor support income (cost = 50% of Distributor support costs) | ||||
| Total | ||||
| Retailers (aggregated) | ||||
| Purchase Costs (i.e., sales revenue of wholesaler/distributor ) | $0 | $0 | $0 | |
| Retailers Markup (25%) | ||||
| Sales Revenue | ||||
| Operating Margin (40% of markup) | ||||
| Retailer promotion income (cost = 30% of Retailer Promotion Costs) | ||||
| Total | ||||
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Contemporary Issues In Behavioral Finance
Authors: Simon Grima
1st Edition
1787698823, 978-1787698826
