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Microfridge and Rin Case

The document presents cost and pricing information for different sales channels and product offerings for Microfridge cases, including direct sales, sales through distributors and retailers, online sales, and potential solutions for using Microfridges in hostels and motels. It calculates break-even points and contributions for each channel and product. It also models costs and profits for a dishwasher product with and without promotions, both on its own and alongside launching a new fabric wash product.

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Gopichand Athukuri
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324 views5 pages

Microfridge and Rin Case

The document presents cost and pricing information for different sales channels and product offerings for Microfridge cases, including direct sales, sales through distributors and retailers, online sales, and potential solutions for using Microfridges in hostels and motels. It calculates break-even points and contributions for each channel and product. It also models costs and profits for a dishwasher product with and without promotions, both on its own and alongside launching a new fabric wash product.

Uploaded by

Gopichand Athukuri
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Microfridge Case

Fixed Costs

Tooling Payment to Sanyo 170000

Selling and Admin Costs 300000

Patents and other costs 60000

Total Fixed Costs 530000

Cost for one unit from Sanyo (Variab 263

Direct Sale without Distribution channel

Price 309

Contribution 46

Break even Point (units) 11522

Sale with distribution channel

Price for the distributor 309

Price for the retailer 355.35

Price for the Customer 461.96

Contribution for Bennett 46

Break even point (Units) 11522

The distributor and retailer margin wont effect the contribution for Bennett

Sale online

Price for the e-tailer 309

Price for the Customer (20% margin etail 370.80

Contribution for Bennett 46

Break even point (Units) 11522

The online retailer margin wont effect the contribution for Bennett

Charu Group solution for Hostel


Hostel payment for one person per year 50

Hostel payment for one person for 5 yea 250

For one room on sharing basis 500

Contribution 237

Break even point (Units) 2236

Solution for Motels

Per day extra fee for microfridge 1

Considering 150 days per year occupanc 150

For four years 600

Contribution 337

Break even point (Units) 1573


RIN
Dish Wash
Dish Wash with
1998 with no
promotion
promotion

Net Proceeds from Sale ### 23303 25632.8


Raw Materials and Direct Labour Cost ### 9567.6
Advertising Cost 2464 2464
Selling and Transportation Cost 896 672
Fixed Cost 6214 6214
Development Cost

Net Profit 2456 4384.9 5444.79

Considering an
increase of 10
percent in the
sales due to a
10% increase in
advertisement

Considering Considering
variable costs variable costs will
will increase increase
proportional to proportional to
the sales the sales
RIN Case
Dish wash first year with no Dish wash first
Dish Wash with Fabric
promotion and launch fabric promotion and la
promotion Wash
wash next year wash next
First Year Second Year First Year
7767.5 23303 31070 25632.8
### ### 9567.6 14328
2710.40 ### 2464 3964
739.20 224 672 896
6214.00 ### 6214 6214
### 1000

-6895 3384.9 5668


Increase in 4444.79
promotion of Considering an
Considering an 1500 for the increase of 10
increase of 10 new bar and percent in the
Developmen
percent in the Development getting a share sales due to a
t cost of
sales due to a cost of 1000 of 25% of 10% increase in
1000
10% increase in original sales. advertisement
advertisement Also price for AND Development
the bar is kept cost of 1000
same
Considering
Considering Considering Considering Considering
variable
variable costs will variable costs variable costs variable costs will
costs will
increase will increase will increase increase
increase
proportional to proportional to proportional to proportional to
proportional
the sales the sales the sales the sales
to the sales
Dish wash first year with
promotion and launch fabric
wash next year
First Year Second Year
33400.3
### 15284.4
2710.40 4210.4
739.20 963.2
6214.00 6214
1000

6728.29
Considering an Increase in
increase of 10 promotion of 1500
percent in the for the new bar
sales due to a and getting a
10% increase in share of 25% of
advertisement original sales. Also
AND Development price for the bar is
cost of 1000 kept same

Considering Considering
variable costs will variable costs will
increase increase
proportional to proportional to the
the sales sales

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