Collogena is a brand of medicinal soap that is manufactured by Facial Products Ltd., and sold primarily through drugstores. The Collogena product manager last forecast in 2019 that Collogena would deliver a profit of $3,725,000 (13.1% profit margin) in 2020. The product manager is now checking on the brands progress by updating his brands P&L statement using the following information:

Current Estimated Collogena case sales for 2020: 1,800,000

Price per case to wholesalers: $15.00

Costs and Expenses

Production Plant $1,000,000

Administration $3,000,000

Marketing $2,000,000

Production cost per case $6.00

Sales and distribution cost per case $3.00

Advertising spending $2,000,000

COLLOGENA P & L STATEMENT FOR 2020

	Original Estimate		Revised Estimate
	$000	% Sales Rev	$000	% Sales Rev
Sales Revenue	28500	100.0		100.0
Fixed Costs	6000	21.1
Variable Costs	16625	58.3
Expenses	2150	7.5
Net Profit	3725	13.1

QUESTION:

Is Collogena on track to meet its 2020 profit targets? Which number is the best indicator of this?

		Yes; Profit
		No; Profit Margin
		Not possible to tell; Insufficient data