Q3b. Based on what you found, write an explanation what this 31 means for CPA? + 32 Q3c. How can BigBelly improve the LTV of a customer? Q4. Plot the average COGs by quantity sold. Is Seahorse experiencing economies of scale, diseconomies of scale or constant returns to 33 scale? Q5. Is the 3.5M acquisition value in 2004 realistic? Why or why not 34 (from an economic perspective)? Q6. Plot the breakeven graph. When does Seahorse breakeven? How 35 realistic is this? 36 1 Seaforse Power Financial Summary 2005 3 1 Year Bippelly (small) units fligBelly average price BigBelly average COGS 2004 175 $3,800 $1,695 570 $2.950 $1,500 2006 1,293 $2,750 $1.183 2007 1,876 $2,350 $723 2004 2,171 $2.150 $723 2009 2,606 $1,950 5723 5 +27 54,500 $3,180 $786,500 $9.450 $6,660 $802610 285 $3,900 $2.180 $2,791422 $45,749 $48.235 $2,885,406 663 $3,400 $2,210 $5,809,618 $361,927 $339,222 56510,762 912 $2,900 $1.710 $7,138,861 $1,223,951 $1,024.997 59,387,809 1227 $2,650 $1,505 $7.920,163 $1,615,375 $1,528,664 $11,064,202 1592 $2,250 $1,160 $8,654,398 $2,129,655 $2,117,487 $12.911,541 Hippo (large) units Hippo average price Hippo average COGS Total direct sales rev's BigBelly license revenues Hippo license revenues Total gross revenues Expenses H&D, Product development Sales & marketing General and Administration Total average COGS Other variable expenses/adjustments EBITDA Funding needs fequity/ debt) Potential acquisition value $193,745 $72,900 $244,100 $382,485 557,590 IS108,210) $800,000 $3,500,000 $411.441 $128,895 $363.975 $1,760,249 $60,094 $139,245) $1,000,000 $4,328.110 5635,511 $761332 S477,229 $2.995,137 $45,298 $1.596,260 $ 706,504 $997,487 $506,842 $2,966,367 $9,064 $4,201.545 $914,514 $1.113,467 $539,397 $3,416,715 $17,196 S5,062 913 $1,627,576 $1.245,191 $574,850 $3.731,099 $26.323 55.706,502 $9,756,150 $15,428,666 $22,128,605 $25,823,082 Q3b. Based on what you found, write an explanation what this 31 means for CPA? + 32 Q3c. How can BigBelly improve the LTV of a customer? Q4. Plot the average COGs by quantity sold. Is Seahorse experiencing economies of scale, diseconomies of scale or constant returns to 33 scale? Q5. Is the 3.5M acquisition value in 2004 realistic? Why or why not 34 (from an economic perspective)? Q6. Plot the breakeven graph. When does Seahorse breakeven? How 35 realistic is this? 36 1 Seaforse Power Financial Summary 2005 3 1 Year Bippelly (small) units fligBelly average price BigBelly average COGS 2004 175 $3,800 $1,695 570 $2.950 $1,500 2006 1,293 $2,750 $1.183 2007 1,876 $2,350 $723 2004 2,171 $2.150 $723 2009 2,606 $1,950 5723 5 +27 54,500 $3,180 $786,500 $9.450 $6,660 $802610 285 $3,900 $2.180 $2,791422 $45,749 $48.235 $2,885,406 663 $3,400 $2,210 $5,809,618 $361,927 $339,222 56510,762 912 $2,900 $1.710 $7,138,861 $1,223,951 $1,024.997 59,387,809 1227 $2,650 $1,505 $7.920,163 $1,615,375 $1,528,664 $11,064,202 1592 $2,250 $1,160 $8,654,398 $2,129,655 $2,117,487 $12.911,541 Hippo (large) units Hippo average price Hippo average COGS Total direct sales rev's BigBelly license revenues Hippo license revenues Total gross revenues Expenses H&D, Product development Sales & marketing General and Administration Total average COGS Other variable expenses/adjustments EBITDA Funding needs fequity/ debt) Potential acquisition value $193,745 $72,900 $244,100 $382,485 557,590 IS108,210) $800,000 $3,500,000 $411.441 $128,895 $363.975 $1,760,249 $60,094 $139,245) $1,000,000 $4,328.110 5635,511 $761332 S477,229 $2.995,137 $45,298 $1.596,260 $ 706,504 $997,487 $506,842 $2,966,367 $9,064 $4,201.545 $914,514 $1.113,467 $539,397 $3,416,715 $17,196 S5,062 913 $1,627,576 $1.245,191 $574,850 $3.731,099 $26.323 55.706,502 $9,756,150 $15,428,666 $22,128,605 $25,823,082