Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I would like help building a product/retail P&L showing gross profit on the products below given the following assumptions.The file should allow us to sort

I would like help building a product/retail P&L showing gross profit on the products below given the following assumptions.The file should allow us to sort and to add additional products easily.

Product one.MSRP $100.Target Channel margin 25%.Distribution margin 6%.Defective allowance 5%.Retailer MDF 5%.BOM $38.Warranty 3%.Freight 2%.

Product one.MSRP $100.Best Buy Channel margin 30%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 0%.BOM $38.Warranty 3%.Freight 2%.

Product one.MSRP $100.Kohl's Channel margin 20%.Distribution margin 0%.Defective allowance 3%.Retailer MDF 5%.BOM $38.Warranty 3%.Freight 1%.

Product one.MSRP $100.B8TA Channel margin 25%.Distribution margin 0%.Defective allowance 9%.Retailer MDF 7%.BOM $38.Warranty 3%.Freight 2%.

Product one.MSRP $100.Amazon Channel margin 15%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $38.Warranty 3%.Freight 2%.RMA 3%

Product one.MSRP $100.Newegg Channel margin 20%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 2%.BOM $38.Warranty 3%.Freight 2%.

Product one.MSRP $100.Macy's Channel margin 20%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $38.Warranty 3%.Freight 2%.RMA 5%

Product two.MSRP $199.Target Channel margin 25%.Distribution margin 6%.Defective allowance 5%.Retailer MDF 5%.BOM $70.Warranty 3%.Freight 2%.

Product two.MSRP $199.Best Buy Channel margin 30%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 0%.BOM $70.Warranty 3%.Freight 2%.

Product two.MSRP $199.Kohl's Channel margin 20%.Distribution margin 0%.Defective allowance 3%.Retailer MDF 5%.BOM $70.Warranty 3%.Freight 1%.

Product two.MSRP $199.B8TA Channel margin 25%.Distribution margin 0%.Defective allowance 9%.Retailer MDF 7%.BOM $70.Warranty 3%.Freight 2%.

Product two.MSRP $199.Amazon Channel margin 15%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $70.Warranty 3%.Freight 2%.RMA 3%

Product two.MSRP $199.Newegg Channel margin 20%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 2%.BOM $70.Warranty 3%.Freight 2%.

Product two.MSRP $199.Macy's Channel margin 20%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $70.Warranty 3%.Freight 2%.RMA 5%

Product three.MSRP $299.99.Target Channel margin 25%.Distribution margin 6%.Defective allowance 5%.Retailer MDF 5%.BOM $100.Warranty 3%.Freight 2%.

ProductthreeMSRP $299.99.Best Buy Channel margin 30%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 0%.BOM $100.Warranty 3%.Freight 2%.

ProductthreeMSRP $299.99.Kohl's Channel margin 20%.Distribution margin 0%.Defective allowance 3%.Retailer MDF 5%.BOM $100.Warranty 3%.Freight 1%.

ProductthreeMSRP $299.99.B8TA Channel margin 25%.Distribution margin 0%.Defective allowance 9%.Retailer MDF 7%.BOM $100.Warranty 3%.Freight 2%.

Productthree.MSRP $299.99.Amazon Channel margin 15%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $100.Warranty 3%.Freight 2%.RMA 3%

ProductthreeMSRP $299.99.Newegg Channel margin 20%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 2%.BOM $100.Warranty 3%.Freight 2%.

Productthree.MSRP $299.99.Macy's Channel margin 20%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $100.Warranty 3%.Freight 2%.RMA 5%

Product Four.MSRP $149.99.Target Channel margin 25%.Distribution margin 6%.Defective allowance 5%.Retailer MDF 5%.BOM $49.Warranty 3%.Freight 2%.

ProductFourMSRP $149.99..Best Buy Channel margin 30%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 0%.BOM $49.Warranty 3%.Freight 2%.

ProductFourMSRP $149.99..Kohl's Channel margin 20%.Distribution margin 0%.Defective allowance 3%.Retailer MDF 5%.BOM $49.Warranty 3%.Freight 1%.

ProductFourMSRP $149.99..B8TA Channel margin 25%.Distribution margin 0%.Defective allowance 9%.Retailer MDF 7%.BOM $49.Warranty 3%.Freight 2%.

ProductFour.MSRP $149.99..Amazon Channel margin 15%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $49.Warranty 3%.Freight 2%.RMA 3%

ProductFourMSRP $149.99..Newegg Channel margin 20%.Distribution margin 6%.Defective allowance 2%.Retailer MDF 2%.BOM $49.Warranty 3%.Freight 2%.

ProductFour.MSRP $149.99..Macy's Channel margin 20%.Distribution margin 5%.Defective allowance 0%.Retailer MDF 5%.BOM $49.Warranty 3%.Freight 2%.RMA 5%

Note:Retailer MDF is accrued internally by the company sois not reflected in the invoice price.

Which channel and product are the most profitable.What avenues should we investigate to increase our gross margin?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: Philip J. Adelman; Alan M. Marks

6th edition

9780133099096, 133140512, 133099091, 978-0133140514

More Books

Students also viewed these Finance questions

Question

Solve the inequalities in Problems 4150. 7-5A Answered: 1 week ago

Answered: 1 week ago

Question

Compare and contrast passive versus active delivery equipment.

Answered: 1 week ago