| Financial Impact for Expansion project for Nordstrom |
| Period in years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| Variable Costs per Unit |
| Raw Materials | | $9.00 | $10.00 | $11.00 | $ 12.00 | $ 13.00 | $ 14.00 | $ 15.00 | $ 16.00 | $ 17.00 | $ 18.00 |
| Manufactured Components | | $22.00 | $25.00 | $28.00 | $ 31.00 | $ 34.00 | $ 37.00 | $ 40.00 | $ 43.00 | $ 46.00 | $ 49.00 |
| Purchased Components | | $35.00 | $38.00 | $40.00 | $ 42.67 | $ 44.89 | $ 47.41 | $ 49.73 | $ 52.18 | $ 54.55 | $ 56.97 |
| Labor | | $22.00 | $25.00 | $30.00 | $ 33.67 | $ 38.22 | $ 42.19 | $ 46.54 | $ 50.64 | $ 54.91 | $ 59.06 |
| Internal Transp. & Storage | | $0.50 | $1.00 | $1.50 | $ 2.00 | $ 2.50 | $ 3.00 | $ 3.50 | $ 4.00 | $ 4.50 | $ 5.00 |
| Energy | | $1.25 | $1.50 | $1.75 | $ 2.00 | $ 2.25 | $ 2.50 | $ 2.75 | $ 3.00 | $ 3.25 | $ 3.50 |
| Total Variable Costs Per Unit | | $89.75 | $100.50 | $112.25 | $123.33 | $134.86 | $146.09 | $157.52 | $168.82 | $180.20 | $191.53 |
| Sales Price Per Unit | | $150.25 | $151.30 | $152.50 | $ 153.60 | $ 154.77 | $ 155.89 | $ 157.04 | $ 158.17 | $ 159.32 | $ 160.45 |
| Units Sold | | 30,000.00 | 35,000.00 | 40,000.00 | 45,000.00 | 50,000.00 | 55,000.00 | 60,000.00 | 65,000.00 | 70,000.00 | 75,000.00 |
| Total Sales | | $4,507,500.00 | $5,295,500.00 | $6,100,000.00 | $6,912,000.00 | $7,738,333.33 | $8,573,888.89 | $9,422,444.44 | $10,281,234.57 | $11,152,267.49 | $12,034,094.65 |
| Total Variable Costs | | $2,692,500.00 | $3,517,500.00 | $4,490,000.00 | $5,550,000.00 | $6,743,055.56 | $8,035,092.59 | $9,451,296.30 | $10,973,230.45 | $12,614,283.26 | $14,364,797.67 |
| Total Fixed Costs | | $ 90,000.00 | $ 95,000.00 | $ 100,000.00 | $ 105,000.00 | $ 110,000.00 | $ 115,000.00 | $ 120,000.00 | $ 125,000.00 | $ 130,000.00 | $ 135,000.00 |
| Total COGS | | $2,782,500.00 | $3,612,500.00 | $4,590,000.00 | $5,655,000.00 | $6,853,055.56 | $8,150,092.59 | $9,571,296.30 | $11,098,230.45 | $12,744,283.26 | $14,499,797.67 |
| Gross Profit | | $1,725,000.00 | $1,683,000.00 | $1,510,000.00 | $1,257,000.00 | $885,277.78 | $423,796.30 | ($148,851.85) | ($816,995.88) | ($1,592,015.78) | ($2,465,703.02) |
| Gen, Sales & Admin Expense | | $ 5,000.00 | $ 6,000.00 | $ 7,000.00 | $ 8,000.00 | $ 9,000.00 | $ 10,000.00 | $ 11,000.00 | $ 12,000.00 | $ 13,000.00 | $ 14,000.00 |
| Depreciation | | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 | $ 40,000.00 |
| EBIT(Earn. Before Int. & Tax) | | $ 1,680,000.00 | $ 1,637,000.00 | $ 1,463,000.00 | $ 1,209,000.00 | $ 836,277.78 | $ 373,796.30 | $ (199,851.85) | $ (868,995.88) | $ (1,645,015.78) | $ (2,519,703.02) |
| Income Tax | 0.35 | $ 588,000.00 | $ 572,950.00 | $ 512,050.00 | $ 423,150.00 | $ 292,697.22 | $ 130,828.70 | $ (69,948.15) | $ (304,148.56) | $ (575,755.52) | $ (881,896.06) |
| Incremental Earnings | | $1,092,000 | $1,064,050 | $950,950 | $785,850 | $543,581 | $242,968 | ($129,904) | ($564,847) | ($1,069,260) | ($1,637,807) |
| Depreciation Add Back | | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 | $40,000.00 |
| Incremental Free Cash Flow | ($5,485,000) | $1,132,000.00 | $1,104,050.00 | $990,950.00 | $825,850.00 | $583,580.56 | $282,967.59 | ($89,903.70) | ($524,847.33) | ($1,029,260.25) | ($1,597,806.96) |
Aplustutor
FinancialImpactforExpansionprojectforNordstrom.xlsx
