Question
Summary: Critical background information about the company, the environment it is operating in, and other factors of significance (Industry and Company analysis) Company information: Bibitor
Summary:
Critical background information about the company, the environment it is operating in, and other factors of significance (Industry and Company analysis)
Company information:
Bibitor LLC is an alcohol company that sells wines and spirits that operates in Lincoln state.
It has 79 stores, with the top 5 revenue generating stores being stores : 76, 73, 34, 38, 66.
Total sales equal around 442 million dollars, and COGS is around 303 million dollars.
Average sales per store is around $5,583,184, and the median for sales is $3,961,997. Additionally, the average COGS per store is $3,741,375, with the median being $2,680,286.
The most popular size for wine is 750mL, generating about 128 million dollars in sales, with around 10.1 million of bottles sold.
The most popular size for spirits is 1.75L, generating about 127.4 million in sales from about 5.8 million bottles.
Environment information:
Assuming the legal drinking age is 18, there are 1,045,343 potential customers in Lincoln
Total alcoholic beverage sales in the US was about 223 billion dollars in 2016, and trends indicate that the industry will keep growing
Younger generations favor spirits and wine more, with 51.2% of millenials/ Gen X buying beers, and 33.6% buying spirits. (Beverage Information Group, John Beaudette)
Should Bibitor open the 80th store? To support your answer, include a side by side variable income statement with and without the 80th store. Include any assumptions and/or limitations of your total cost model.
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