Novartis Arogya Parivar Q Calculate Compound Annual Growth Rate (CAGR), and Q Estimate Break-Even Cost Structure Q: What compound annual growth rate does Novartis project from 2008 to 2015 for India's rural market, using data in exhibit 7? By IRRR Function: Rural share of mkt Total Mkt size Rural mkt size Using XIRR $ Dates 2008 start value 2015 end value CAGR '08-'15 By Original formula: Create formula: CAGR Q: Novartis projects the Arogya Parivar program to break-even in year 5. Fill in missing elements of cost structure under this scenario. What has to happen in the business for break-even to be achieved? Are you confident this can happen? Why or why not? Novartis Income Statements restated in Index number form (Revenue=100) Novartis Corporate Income Statement 2013 Projected Arogya Parivar Program at break-even Sales Revenue 100 90 Cost of Goods Sold 33 Gross Profit 67 Operating Costs: Marketing & Sales 25 R&D 17 10 corporate allocation General & Admin 5 5 corporate allocation Other Expense 4 Total Operating Costs 51 Other Income 3 0 Operating Income 19 0