Omnichannel Analytic Exercise
Nany2018
Omnichannelanalysisv3.xlsxCosts
| Fixed Costs | Variable costs per unit | Intermediary Costs | ||||||
| Operating Plant | $ 6,500,000 | perfume contents | $ 2.25 | Handling per unit | $ 2.00 | |||
| Employee Salaries | $ 2,250,000 | bottle / container | $ 2.75 | |||||
| Advertising Budget | $ 5,000,000 | packaging | $ 0.95 | |||||
| Other Administrative | $ 750,000 | other costs per unit | $ 0.30 | |||||
| Total Fixed | $ 14,500,000 | Total Variable Cost | $ 6.25 | Total Intermediary Cost | $ 2.00 | |||
Distribution
| Share | Retail Margin | Elasticity | ||
| Department stores | 20% | 25% | (0.66) | |
| Specialty stores | 22% | 30% | (0.56) | |
| Discount stores | 9% | 10% | (1.20) | |
| Drug stores | 15% | 20% | (0.78) | |
| Supercenters | 9% | 8% | (1.40) | |
| Online | 25% | 15% | (1.10) |
Previous Year
| Previous year volume | 1,458,769 | |||
| Previous year price | $35.99 | |||
| Previous total sales | $ 52,501,096 | |||
| Total Sales to Retail | $ 42,016,627 | |||
| Previous Total Costs | $ 26,534,844 | |||
| Previous year profit | $ 15,481,783 |
Fixed Costs
| Costs | Last Year | New Price | ||||||||||
| Operating Plant | $ 6,500,000 | Previous year volume | 1,458,769 | New price | $43.00 | |||||||
| Employee Salaries | $ 2,250,000 | Previous year price | $35.99 | Price % increase | 19.5% | |||||||
| Advertising Budget | $ 5,000,000 | Previous total sales | $ 52,501,096 | New Total Sales | $ 51,960,788 | |||||||
| Other Administrative | $ 750,000 | |||||||||||
| Total Fixed Costs | $ 14,500,000 | |||||||||||
| Intermediary Cost | $ 2,917,538 | Intermediary Cost | $ 2,416,781 | |||||||||
| perfume contents | $ 2.25 | Previous year VC | $ 9,117,306 | New VC | $ 7,552,440 | |||||||
| bottle / container | $ 2.75 | Previous Total Costs | $ 26,534,844 | Total Costs | $ 24,469,221 | |||||||
| packaging | $ 0.95 | |||||||||||
| other costs per unit | $ 0.30 | Total Sales to Retail | $ 42,016,627 | Total Sales to Retail | $ 41,333,930 | |||||||
| Total Variable Cost | $ 6.25 | |||||||||||
| Intermediary Cost per unit | $ 2.00 | Previous year profit | $ 15,481,783 | New profit | $ 16,864,709 | |||||||
| Share | Volume | Retail Margin | Price to Retailer | Total Retail Cost | Elasticity | Change in Volume | New Volume | New Price to Retail | New Cost to Retailer | |||
| Department stores | 20% | 291,754 | 25% | $26.99 | $7,875,164 | (0.66) | -13% | 254,248 | $32.25 | $ 8,199,503 | ||
| Specialty stores | 22% | 320,929 | 30% | $25.19 | $8,085,169 | (0.56) | -11% | 285,924 | $30.10 | $ 8,606,310 | ||
| Discount stores | 9% | 131,289 | 10% | $32.39 | $4,252,589 | (1.20) | -23% | 100,603 | $38.70 | $ 3,893,327 | ||
| Drug stores | 15% | 218,815 | 20% | $28.79 | $6,300,132 | (0.78) | -15% | 185,572 | $34.40 | $ 6,383,667 | ||
| Supercenters | 9% | 131,289 | 8% | $33.11 | $4,347,091 | (1.40) | -27% | 95,488 | $39.56 | $ 3,777,520 | ||
| Online | 25% | 364,692 | 15% | $30.59 | $11,156,483 | (1.10) | -21% | 286,555 | $36.55 | $ 10,473,603 | ||
| Total | 1,458,769 | $ 42,016,627 | 1,208,390 | $ 41,333,930 |
