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introduce a y brand and aiming to attract more consumers, especially the young adults between 18-29 years old. Data and Assumptions - x is expected
introduce a y brand and aiming to attract more consumers, especially the young adults between 18-29 years old. Data and Assumptions - x is expected to reach 10% of y volume liter sold. - x has 30\% higher raw \& pack material cost per liter compared to y. - There is enough production capacity in the existing manufacturing site, therefore no need for new capital investment. - There will be extra labor force needed to produce x brand in the existing production capacity. No new engineers or managers will be hired. - Recommended retailer mark-up is 25% for brand (as \% of net sales) - Below is the profit loss statement of existing x brand. X profit Loss Statement* Volume Sold (Liter) 1000000 X Net Sales (excluding VAT and Excise taxes) 100000000 TRY Raw \& Pack material cost 25000000 TRY Labor cost 15000000 TRY Depreciation cost 10000000 TRY Engineering Cost 10000000 TRY Cost of Goods Sold 60000000 TRY Marketing Expense 5000000 TRY Selling and Administrative Expenses 10000000 TRY EBIT 25000000 TRY *theoretical figures for case study, not attributable to the real business. Case Study Questions Please share your ideas and prepare the requested information listed below: 1. How would you recommend to define financial goals about y launch plan? What are your strategies to achieve these goals? 2. What is your recommended market price assumption of y ? 3. Please analyze Profit Loss Statement of y based on your assumptions. Please provide EBIT \% margin perspective end explain key drivers compared to x Please prepare consolidated Profit loss statement (x+y) and explain key insights
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