Question

1 Approved Answer

Posted on Aug 01, 2024

Hi there can you help calculate the cost of goods sold for year 2018,2019 and 2020 Case study: Assumptions BASIC INPUTS Current year Base currency

Hi there can you help calculate the cost of goods sold for year 2018,2019 and 2020 image text in transcribed

Case study: Assumptions BASIC INPUTS Current year Base currency Inflation assumption Prime interest rate Corporate tax rate Operating days per year 2020 ZAR 5.5% 6.5% 28% 220 USD / ZAR exchange rate EUR / ZAR exchange rate 2018 12.50 14.00 2019 14.00 15.00 2020 15.50 16.00 REVENUE INPUTS Selling price per unit Product 1 Product 2 2018 240.00 70.00 2019 253.20 73.85 2020 267.13 77.91 DIRECT COST INPUTS Product 1 inputs (USD per litre) Chemical 1 Chemical 2 Chemical 3 2018 1.20 1.70 1.50 2019 1.20 1.70 1.50 2020 1.20 1.70 1.50 Product 2 inputs (USD per litre) Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 2018 3.00 1.50 1.50 1.20 3.20 2019 3.00 1.50 1.50 1.20 3.20 2020 3.00 1.50 1.50 1.20 3.20 Labour costs Factory supervisor (R per month) Factory worker (R per month) 2018 13,000 8,000 2019 13,715 8,440 2020 14,469 8,904 Labour capacity Factory workers per 1,000 litre per day Factory supervisors: factory worker ratio 2.0 20% 2.0 20% 2.0 20% Packaging costs Product 1 bulk containters (per unit) Product 2 containters (per unit) Product 2 labelling (per unit) 2018 8.00 1.50 0.80 2019 8.44 1.58 0.84 2020 8.90 1.67 0.89 Import duties (% of import value) Product 1 (average) Product 2 (average) 15% 25% 15% 25% 15% 25% Logistics costs (cost per container) Product 1 Product 2 18.0 3.00 18.99 3.17 20.03 3:34 Commissions Sales rep commission (% of sales) 5.5% 5.5% 5.5% OPERATING CAPACITY INPUTS 2018 5,000 65.00% 60.00% 40.00% 2019 5,000 65.00% 60.00% 40.00% 2020 5,000 65.00% 60.00% 40.00% Factory maximum litres per day Factory average capacity utilisation Product 1 production allocation Product 2 production allocation Product 1 mix Chemical 1 Chemical 2 Chemical 3 10.00% 40.00% 50.00% 10.00% 40.00% 50.00% 10.00% 40.00% 50.00% Product 2 mix Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 10.00% 20.00% 30.00% 30.00% 10.00% 10.00% 20.00% 30.00% 30.00% 10.00% 10.00% 20.00% 30.00% 30.00% 10.00% Packaging volume (litre per container) Product 1 Product 2 10.00 1.00 10.00 1.00 10.00 1.00 OPERATING COST INPUTS Non-factory staff head count Executive management Administrative staff Sales staff Logistics: Driver Logistics: Administrator 2018 2 2 1 2019 2 2 1 1 1 2020 2 2 1 1 1 1 1 Unit staff cost to company per month Executive management Administrative staff Sales staff Logistics: Driver Logistics: Administrator 2018 75,000 18,000 15,000 16,000 14,000 2019 79,125 18,990 15,825 16,880 14,770 2020 83,477 20,034 16,695 17,808 15,582 General & administrative costs per month Office/factory rental Stationery & general Entertainment expenses Miscellaneous expenses Internet/telephone Audit Insurance Staff costs 2018 150,000 20,000 6,000 10,000 6,000 1,500 8,000 5,000 2019 158,250 21,100 6,330 10.550 6,830 1,583 8.440 5,275 2020 166,954 22,261 6,678 11.130 6,678 1,670 8,904 5,565 Marketing & advertising cost per mont Social media advertising Trade marketing expenses Website. & SEO 2018 25,000 120,000 12,000 2009 26,375 126,600 12 660 2020 27,826 133.563 13,356 > B D E G 2018 2019 2020 21,000 COST OF GOODS SOLD % y/y growth 22,155 5.50% 23,373 5.50% COST OF GOODS SOLD 21,000 22,155 23,373 21,000 22,155 23,373 Raw materials Direct labour Packaging Logistics Emport duties Sales rep commission COMMISSION COST Sales rep commission FACTORY STAFF COSTS 21,000 22,155 23,373 Factory supervisor Factory worker 13,000 8,000 13,715 8,440 14,469 8.904 FACTORY STAFF NUMBERS Factory supervisor Factory worker PRODUCT IMPORT DUTIES Product 1 Product 2 PRODUCT MATERIALS INPUT COST (ZAR) Product 1 Product 2 G LOGISTICS COSTS Product 1 Product 2 PACKAGING COST Product 1 bulk Product 2 containers Product 2 labels PACKAGING CONTAINERS (NUMBER) Product 1 bulk Product 2 containers Product 2 labels PRODUCT 1 PRODUCTION INPUT COST (USD) Chemical 1 Chemical 2 Chemical 3 PRODUCT 2 PRODUCTION INPUT COST (USD) Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 PRODUCT 1 PRODUCTION INPUT VOLUME (LITRES) Chemical 1 Chemical 2 Chemical 3 PRODUCT 2 PRODUCTION INPUT VOLUME (LITRES) Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 PRODUCT 1 PRODUCTION VOLUME (LITRES) Product 1 production volume (litres) PRODUCT 2 PRODUCTION VOLUME (LITRES) Product 2 production volume (litres) Case study: Assumptions BASIC INPUTS Current year Base currency Inflation assumption Prime interest rate Corporate tax rate Operating days per year 2020 ZAR 5.5% 6.5% 28% 220 USD / ZAR exchange rate EUR / ZAR exchange rate 2018 12.50 14.00 2019 14.00 15.00 2020 15.50 16.00 REVENUE INPUTS Selling price per unit Product 1 Product 2 2018 240.00 70.00 2019 253.20 73.85 2020 267.13 77.91 DIRECT COST INPUTS Product 1 inputs (USD per litre) Chemical 1 Chemical 2 Chemical 3 2018 1.20 1.70 1.50 2019 1.20 1.70 1.50 2020 1.20 1.70 1.50 Product 2 inputs (USD per litre) Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 2018 3.00 1.50 1.50 1.20 3.20 2019 3.00 1.50 1.50 1.20 3.20 2020 3.00 1.50 1.50 1.20 3.20 Labour costs Factory supervisor (R per month) Factory worker (R per month) 2018 13,000 8,000 2019 13,715 8,440 2020 14,469 8,904 Labour capacity Factory workers per 1,000 litre per day Factory supervisors: factory worker ratio 2.0 20% 2.0 20% 2.0 20% Packaging costs Product 1 bulk containters (per unit) Product 2 containters (per unit) Product 2 labelling (per unit) 2018 8.00 1.50 0.80 2019 8.44 1.58 0.84 2020 8.90 1.67 0.89 Import duties (% of import value) Product 1 (average) Product 2 (average) 15% 25% 15% 25% 15% 25% Logistics costs (cost per container) Product 1 Product 2 18.0 3.00 18.99 3.17 20.03 3:34 Commissions Sales rep commission (% of sales) 5.5% 5.5% 5.5% OPERATING CAPACITY INPUTS 2018 5,000 65.00% 60.00% 40.00% 2019 5,000 65.00% 60.00% 40.00% 2020 5,000 65.00% 60.00% 40.00% Factory maximum litres per day Factory average capacity utilisation Product 1 production allocation Product 2 production allocation Product 1 mix Chemical 1 Chemical 2 Chemical 3 10.00% 40.00% 50.00% 10.00% 40.00% 50.00% 10.00% 40.00% 50.00% Product 2 mix Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 10.00% 20.00% 30.00% 30.00% 10.00% 10.00% 20.00% 30.00% 30.00% 10.00% 10.00% 20.00% 30.00% 30.00% 10.00% Packaging volume (litre per container) Product 1 Product 2 10.00 1.00 10.00 1.00 10.00 1.00 OPERATING COST INPUTS Non-factory staff head count Executive management Administrative staff Sales staff Logistics: Driver Logistics: Administrator 2018 2 2 1 2019 2 2 1 1 1 2020 2 2 1 1 1 1 1 Unit staff cost to company per month Executive management Administrative staff Sales staff Logistics: Driver Logistics: Administrator 2018 75,000 18,000 15,000 16,000 14,000 2019 79,125 18,990 15,825 16,880 14,770 2020 83,477 20,034 16,695 17,808 15,582 General & administrative costs per month Office/factory rental Stationery & general Entertainment expenses Miscellaneous expenses Internet/telephone Audit Insurance Staff costs 2018 150,000 20,000 6,000 10,000 6,000 1,500 8,000 5,000 2019 158,250 21,100 6,330 10.550 6,830 1,583 8.440 5,275 2020 166,954 22,261 6,678 11.130 6,678 1,670 8,904 5,565 Marketing & advertising cost per mont Social media advertising Trade marketing expenses Website. & SEO 2018 25,000 120,000 12,000 2009 26,375 126,600 12 660 2020 27,826 133.563 13,356 > B D E G 2018 2019 2020 21,000 COST OF GOODS SOLD % y/y growth 22,155 5.50% 23,373 5.50% COST OF GOODS SOLD 21,000 22,155 23,373 21,000 22,155 23,373 Raw materials Direct labour Packaging Logistics Emport duties Sales rep commission COMMISSION COST Sales rep commission FACTORY STAFF COSTS 21,000 22,155 23,373 Factory supervisor Factory worker 13,000 8,000 13,715 8,440 14,469 8.904 FACTORY STAFF NUMBERS Factory supervisor Factory worker PRODUCT IMPORT DUTIES Product 1 Product 2 PRODUCT MATERIALS INPUT COST (ZAR) Product 1 Product 2 G LOGISTICS COSTS Product 1 Product 2 PACKAGING COST Product 1 bulk Product 2 containers Product 2 labels PACKAGING CONTAINERS (NUMBER) Product 1 bulk Product 2 containers Product 2 labels PRODUCT 1 PRODUCTION INPUT COST (USD) Chemical 1 Chemical 2 Chemical 3 PRODUCT 2 PRODUCTION INPUT COST (USD) Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 PRODUCT 1 PRODUCTION INPUT VOLUME (LITRES) Chemical 1 Chemical 2 Chemical 3 PRODUCT 2 PRODUCTION INPUT VOLUME (LITRES) Chemical 4 Chemical 5 Chemical 6 Chemical 7 Chemical 8 PRODUCT 1 PRODUCTION VOLUME (LITRES) Product 1 production volume (litres) PRODUCT 2 PRODUCTION VOLUME (LITRES) Product 2 production volume (litres)