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Altius Excel DS

The document summarizes financial information for Altius and its competitors. It provides market share percentages, retail and manufacturer sales, gross margins, and calculations of gross profit and the value of losing or gaining market share points. Specific calculations show the sales increase required to offset a price cut by Altius, as well as the impact on Altius' profit from a competing product called Elevate that lowers its price.

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Shreya Gupta
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148 views6 pages

Altius Excel DS

The document summarizes financial information for Altius and its competitors. It provides market share percentages, retail and manufacturer sales, gross margins, and calculations of gross profit and the value of losing or gaining market share points. Specific calculations show the sales increase required to offset a price cut by Altius, as well as the impact on Altius' profit from a competing product called Elevate that lowers its price.

Uploaded by

Shreya Gupta
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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Calcutation of Gross Profit and Value of Market Share Point of Altius and its

Given Total Retail sales 2012= 483 M USD


Altius
Market Share ( Retail doller %) 55.2
Retail Sales ($M) 266.6
Retail Margin (%) 15
Manufacturer Sales ( $M) 226.6
Manufacturer Gros margin % 70.0
Manufacturer Gros margin 158.6

Market share, Unit Sales (%) 35.1


Value of Market share Point, unit Sales ($M) 4.5
rket Share Point of Altius and its competitors

Primera Bantam
15 17.3
72.5 83.6
20 20
58.0 66.8
57.5 57.5
33.3 38.4

17.1 14.7
1.9 2.6
Victor TX
Retail Price ($) 48.0
Retail Gros Margin (%) 15
Retail Gross Profit ($) 7.20
Altius Price ($) 40.80
2.2 Altius unit Variable Cost 12.24
Altius Unit Contribution 28.6

Altius Gross Margin (%) 70

Average Unit Gross Profit of Altius

Break Even cannibalization Rate (BECR)

Required sales increase to offset a price cut = Current Unit Contribution *Curren
= Current Unit Contribution= New U
= Current Unit Contribution/New Un

Calculation Showing sales increase

Current Price
Retail Price ($) 39
Retail margin % 15
Altuis Price 33.15
Altius variable cost 9.95
Altius contribution 23.21
Altius Gross margin (%) 70

Discount by Altius (%)


Unit sales increase to maintain profit
Calculation Showing sales increase required with higher Reta

Current Price
Retail Price ($) 39
Retail Margin (%) 15
Altius Price 33.15
Altius Variable cost 9.95
Altius Unit Contribution 23.21
Altius Gross margin (%) 70

Discount by Altius
Unit sales increase to maintain profit
Calculation of Impact of Elevate on Profit

Victor Elevate
39.0 27.0
15 20
5.85 5.40
33.15 21.60
9.95 7.75 Page 6 of the case
23.2 13.85

70 64

26.95

51 percent

nt Unit Contribution *Current Sales level= New unit Contribution *Current Sales Level (1+ Sales Increase)
nt Unit Contribution= New Unit Contribution (1+Sales Increase)
nt Unit Contribution/New Unit Contribution-1=Sales Increase

ation Showing sales increase required with different price cut of Victor

Price Cut 1 Price Cut 2


37 35
15 15
31.45 29.75
9.95 9.95
21.50 19.80
68 67

5.1 10.3
7.9 17.2
e required with higher Retailmargin

Margin Cut 1 Margin Cut 2


39 39
20 22
31.2 30.42
9.95 9.95
21.25 20.47
68 67

5.9 8.2
9.2 13.4

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