Please fill in the blanks in the tables below. Only carry numbers to the 2nd decimal where necessary. Use parentheses ( ) to indicate negative numbers. Complete the "Margin Chain" table first and use those answers to complete "3 Growth Options" table. When calculating the gross options, begin with calculating "gross profit" and then subtract costs/expenses to get your "profit contribution". Then, calculate "sales growth" which is a separate value and represents the estimate 1st year of sales.

Use the equations below if nesessary:

Manufacturer Cost = MSP * (1 - % Manufacturer Gross Margin) Manufacturer Selling Price = RPP * (1 - % Distributor Margin) in Supermarket Channel Manufacturer Selling Price = DPP * (1 - % Wholesaler Margin) in Natural Foods Channel Wholesaler Selling Price = RPP * (1 - % Distributor Margin) in Natural Foods Channel Distributor Sellling Price = RSP * (1 - % Retail Margin)

Margin Chain for Manufacturer Selling Price (Natureview Yogurt)
Supermarket Channel		8-oz	32-oz
Retail Price		$0.74	$2.70
Retail Margin		27.00%	27.00%
Retail Purchase Price (RPP)		_____	_____
Distributor Margin		15.00%	15.00%
Distributor Purchase Price (DPP)		_____	_____
Manufacturer Sales Price (MSP)		$0.46	$1.68
Cost Per Unit		_____	_____
Contribution per Unit Sold		$0.15	_____
Manufacturer Gross Margin		32.50%	40.90%
Natural Foods Channel		8-oz	32-oz	Multipack
Retail Price		$0.88	$3.19	$3.35
Retail Margin		35.00%	35.00%	35.00%
Retail Purchase Price (RPP)		_____	_____	_____
Natural Foods Distributor Margin		9.00%	9.00%	9.00%
Natural Foods Distributor Purchase Price		0.52	_____	_____
Wholesaler Margin		7.00%	7.00%	7.00%
Wholesaler Purchase Price (WPP)		_____	_____	_____
Manufacturer Sales Price (MSP)		_____	_____	_____
Cost Per Unit		$0.31	$0.99	$1.15
Contribution per Unit Sold		_____	_____	_____
Manufacturer Gross Margin		36.00%	43.60%	37.60%

Evaluation of Growth Options
Option 1 (8-oz)
	6		SKU to Supermarket
	20		Supermarket Chains
	2		Regions
Ad Plan	$1,200,000.00		per region per annum
Sales	____________		units per annum
Slotting Fees	$10,000.00		per Chain per SKU
Gross Profit	$5,220,950.00		formula = units sold * $ contribution per unit
Less Ad Costs	____________		2 regions
Less Incremental SGA	____________
Less Slotting Fees	____________
Trade Promotion
Expense	____________
Less Broker's
Commissions	____________
Profit Contribution	-$211,888.00
Sales Growth Year 1	$16,070,950.00		sales growth = MSP * units sold
			Market Share = ___% of supermarket yogurt sales (last year)
			Market Share = ___% of supermarket yogurt 6-8-oz sales (last year)
Option 2 (32-oz)
	4		SKU to Supermarket
	64		Supermarket Chains
	4		Regions
Ad Plan	____________		per region per annum
Sales	____________		units per annum
Slotting Fees	$10,000.00		per Chain per SKU
Gross Profit	____________
Less Ad Costs	____________		4 regions
Less Incremental SGA	____________
Less Slotting Fees	-$2,560,000.00
Trade Promotion
Expense	____________		64 Chains 2x per annum
Less Broker's
Commissions	____________
Profit Contribution	____________
Sales Growth Year 1	____________
			Market Share = ___% of 32-oz yogurt sales nationally (last year)
Option 3 (Multipack)
	2		SKU to Natural Foods
Ad Plan	-$250,000.00
Sales	____________		units per annum
Free Cases (slotting) fee	-$82,927.00		2.5% of Manufacturer Sales (net of broker fees)
Gross Profit	____________
Less Ad Costs	-$250,000.00
Less Free Cases	-$82,927.00		formula = 1.8m units sold * MSP * 2.5%
Less Broker's
Commissions	____________
Profit Contribution	____________
Sales Growth Year 1	____________
			Market Share = ___% of of natural food channel (last year)