Kris Beaudo, Steve Risler, Lisa Schlais, and Mary Stuiber

Sales Plan for Three Ladies and Three Ladies and

a Little Mana Little Man

Loan Situation

Total Loan Payments :$358,327.67

Interest is compounded monthly

Total Interest Payments: $158,327.67

APR is 6.44%

Loan Details

Rate of Depreciation

Depreciation Calculations

Formula  

M= 0-300,000

30-0

 

M= -300000

30

 

M+ $10,000 annual depreciation

 

y-300,000= 30000(x-0)

y-300000=30000x

y= 30000x + 300000

  

Points of originPurchase price - $330,000…..(30,000 allocated to land)

Straight-line method- 30 years

year depr value1 $3,571 $25,0002 $3,571 $21,4293 $3,571 $17,8584 $3,571 $14,2875 $3,571 $10,7166 $3,571 $7,1457 $3,571 $3,574

Points of origin

Fixed & Variable Costs

Item: Figures:Building: $300,000Loan (Building): $200,000Inventory: $100,000Total Sales for Year: $400,000Margin Cost for Wine: Range from 25% to 40%

Cost Assumptions

Inventory Wine A Wine B Wine C Wine DCost of inventory $9.25 $19.00 $25.00 $32.50 Cost of inventory $8.25 $16.50 $21.50 $26.00 Retail price of inventory $12.50 $26.00 $35.00 $46.00

Profit (under 200 units) $3.25 $7.00 $10.00 $13.50 Profit (over 200 units) $4.25 $9.50 $13.50 $20.00

GPM % 26.00% 26.92% 28.57% 29.35%GPM % 34.00% 36.54% 38.57% 43.48%

Monthly Profit and Loss

Profit ExpensesProfit / (Loss)

Jan $3,084 $4,033 ($949)Feb $3,572 $4,033 ($461)Mar $5,395 $4,033 $1,362 Apr $3,980 $4,033 ($53)May $4,191 $4,033 $158 Jun $5,585 $4,033 $1,552 Jul $6,181 $4,033 $2,148

Aug $6,570 $4,033 $2,537 Sep $6,988 $4,033 $2,955 Oct $11,047 $4,033 $7,014 Nov $7,924 $4,033 $3,891 Dec $8,447 $4,033 $4,414

TOTALS $72,966 $48,396 $24,570

Wine Profits

Revenue – Cost – ExpensesEXAMPLE – Wine #A (over 200):

$13.50x = $8.75x + $4,408$4.75x = $4,408

X = 928 units

Break Even Analysis - Units

Supply And Demand Equilibrium

Demand Curve Wine A

Price $29 $20 $14 $10 $9

Qty 50 100 200 350 500

Supply Curve Wine A

Price $10 $12 $15 $21 $29

Qty 50 200 300 400 450

Demand Curve Wine B

Price $40 $33 $27 $24 $22

Qty 50 100 200 350 500

Supply Curve Wine B

Price $24 $26 $29 $34 $40

Qty 50 200 300 400 450

Supply And Demand Equilibrium

Demand Curve Wine C

Price $50 $42 $37 $34 $33

Qty 50 100 200 350 500

Supply Curve Wine C

Price $31 $33 $35 $40 $50

Qty 50 200 300 400 450

Demand Curve Wine D

Price $65 $58 $50 $43 $39

Qty 50 100 200 350 500

Supply Curve Wine D

Price $41 $44 $47 $55 $65

Qty 50 200 300 400 450

Profit Maximization of Wines A and B

x y p0 0 09.80 0 46.550 50 337.507.40 25 203.09

Profit Maximization of Wines C and D

The Matrix- Reference

Cost of Goods Sold Matrix

Cost and Retail Prices

Total Retail Revenue Matrix

Cost and Retail Prices

Three Ladies and Three Ladies and a Little Mana Little Man

WineWine