Online Volume Sales (2021) 50,000 6,643 4,675 3,399 9,377 18 3,800 4,557 5,267 8,639 1,668 1,956 DLS LUBRICANT LINES MCO GEO DEC Products 2T 2T 4T 4T Fully Syn Geo Supreme GEO Deomax DEO Coolant Brake Fluid SRP Sales Mix 13.29% 9.35% 6.80% 18.75% 0.04% 7.60% 9.11% 10.53% 17.28% 3.34% 3.91% Platform Lazada TOTAL Price per Unit per liter 132.83 125.00 108.00 140.00 140.00 336.13 135.00 115.00 150.00 110.00 160.00 238.89 Unit Price (per L) - Vat ex per liter 118.60 111.61 96.43 125.00 125.00 300.11 120.54 102.68 133.93 98.21 142.86 213.29 COGS per liter 95.60 105.06 88.75 103.72 98.73 183.25 97.06 93.33 98.09 80.06 75.15 131.68 SPI Margin per liter 23.00 6.54 7.68 21.28 26.27 116.86 23.47 9.35 35.84 18.16 67.71 81.61 Transfer Price (per L) - Vat ex per liter 134.09 128.49 115.30 143.90 142.89 340.50 133.93 111.61 151.79 107.14 160.71 238.10 SPI Markup to Lazada 15.48 16.88 18.87 18.90 17.89 40.39 13.39 8.9 17.86 8.93 17.86 24.80 Set to be at par w/ competitor's products 11.47% 13.14% 16.37% 13.13% 12.52% 11.86% 10.00% 8.00% 11.76% 8.33% 11.11% 10.42% Year Profit/Loss Without Absorbed Cost 774,190.73 112,160 88,224 64,244 167,760 736 50,895 40,683 4,059 77,135 29,780 18,515 Additional Cost to Sell to Lazada 33.96 33.59 32.31 34.84 34.55 50.57 33.82 32.01 35.27 31.65 36.20 44.39 Fulfillment Cost- Lazada per liter 16.87 16.80 16.80 16.80 16.80 16.80 16.80 16.80 16.80 16.80 16.80 18.67 Additional Warehouse Cost - Lazada per liter 1.41 1.57 1.35 1.57 1.35 1.35 1.35 1.35 1.35 1.35 1.57 1.61 Service and Commission Fee - Lazada per liter 10.87 10.42 .35 11.67 11.59 27.61 10.86 9.05 12.31 3.69 13.03 19.31 Freight per liter 1.80 4.80 4.80 4.80 4.80 1.8 1.80 4.80 1.80 1.8 4.80 1.80 Distributor Margin per liter 18.95 -17.22 -14.00 -16.51 -17.19 -11.39 -20.83 -23.35 17.95 -22.99 18.88 -20.33 End to End Margin per liter 4.06 -10.67 6.33 4.77 9.07 105.47 2.65 -14.00 17.90 -4.83 48.82 61.28 Year Profit / Loss With Absorption of COGS (All) 202,885.75 -70,900.51 -29,580.29 16,219.98 85,086.11 1,922.25 10,056.17 -63,772.13 94,268.89 -41,703.49 81,420.34 119,868.42 Year Profit / Loss With Absorption of COGS (Profitable Products Only) 408,842.16 16,219.98 85,086.11 1,922.25 10,056.17 94,268.89 81,420.34 119,868.42Analysis In 2021, because of the boom of e-commerce, the DLS Lubricant Division team considered adding another channel to sell the lubricant products. They decided and started to sell all the SKUs online through Lazada. The team simply decided to benchmark competition rates for markup without taking the entire circumstance into account. Sales volume on Lazada's online platform reached 50,000L in 2021, demonstrating the market's interest in online sales of even automobile-related goods. The reported prots generated in this venture made over mp, 774,191. To expedite the initiative, the Marketing team bore the cost of selling the products to Lazada. When it came to reconciling, it was recognized by the Marketing that they were bearing the additional costs of selling this in Lazada such as service fees, freight, advertising, etc. The management then advised that the Lubricant Division team should re-cost and consider costs directly attributed to selling the products in Lazada. In analyzing the data, it resulted that most of the costs should be absorbed in the unit cost, except for advertising expenses. As a result, it was discovered that not all items were protable when taking into account all costs attributed to selling it in Lazada and it was realized that their original prots drastically decreased by 73%. Rguirement: Improve price point of non-protable products that is still competitive in terms of price I nd a way to reduce some of the cost items using Managerial Accounting Tool (Ex: CVP Analysis! Product Costing)