dream beauty
DESCRIPTION
DREAM BEAUTY. Dream Beauty-Activity Based Analysis. Customer Analysis. Customer Analysis. Customer Analysis. Pareto Results. Keep as Customers: Looking Good Beautyss Bliss Cosmo Naturelle La Belle Femme Get rid of the rest, or increase Ordering, Packaging, and Delivery charges. - PowerPoint PPT PresentationTRANSCRIPT
DREAM BEAUTY
Current Assignment of Costs(000') Mass
Segment Retail C-Stores Merchants Total
Sales $65,000 $39,000 $26,000 $130,000COGS $26,000 $15,600 $10,400 $52,000Gross Margin $39,000 $23,400 $15,600 $78,000
Ordering Costs $5,000 $3,000 $2,000 $10,000Packaging Costs $4,000 $2,400 $1,600 $8,000Labeling Costs $1,000 $600 $400 $2,000Delivery Costs $15,000 $9,000 $6,000 $30,000Total Logistics Cost $25,000 $15,000 $10,000 $50,000
Segment Profit $14,000 $8,400 $5,600 $28,000% Contribution 22% 22% 22% 22%
Dream Beauty-Activity Based Analysis
(000') MassSegment Retail C-Stores Merchants Total
Sales $65,000 $39,000 $26,000 $130,000COGS $26,000 $15,600 $10,400 $52,000Gross Margin $39,000 $23,400 $15,600 $78,000
Ordering Costs $2,777 $6,944 $277 $10,000Packaging Costs $3,200 $4,400 $400 $8,000Labeling Costs $0 $0 $2,000 $2,000Delivery Costs $8,333 $20,833 $833 $30,000Total Logistics Cost $14,311 $32,177 $3,511 $50,000
Segment Profit $24,688 ($8,777) $12,089 $28,000% Contribution 38% -23% 46% 22%
Customer Analysis
C-Stores(000')
Store Name Sales COGS G. Margin T. Cost Profit/Store
Cosmo Naturelle $3,500 $1,400 $2,100La Belle Femme $5,000 $2,000 $3,000Beautyss Bliss $10,000 $4,000 $6,000Looking Good $1,500 $600 $900Love Your Style $5,000 $2,000 $3,000Nuttin Homely $1,000 $400 $600Make-up Galore $2,000 $800 $1,200Wild by Nature $3,000 $1,200 $1,800Beautee Fatale $1,000 $400 $600Fruity Beauty $1,500 $600 $900L'Air Du Jour $1,000 $400 $600Tuti Fruity $2,000 $800 $1,200Le Beau Monsieur $2,500 $1,000 $1,500
Totals $39,000 $15,600 $23,400
Customer Analysis
C-StoresOrder Cost: $6,944
Packaging Cost: $4,400Delivery Cost: $20,833
(000')Store Name Orders Pcking Dlvry Orders $ Pcking $ Dlvry $ T. Cost
Love Your Style 300 50 300 $833 $200 $2,499 $3,533Looking Good 75 10 75 $208 $40 $624 $873Wild by Nature 200 100 200 $555 $400 $1,666 $2,622Beautyss Bliss 450 150 450 $1,249 $600 $3,749 $5,599Cosmo Naturelle 60 30 60 $166 $120 $499 $786Beautee Fatale 100 100 100 $277 $400 $833 $1,511La Belle Femme 200 20 200 $555 $80 $1,666 $2,302Le Beau Monsieur 320 200 320 $888 $800 $2,666 $4,355Fruity Beauty 120 120 120 $333 $480 $999 $1,813Tuti Fruity 250 200 250 $694 $800 $2,083 $3,577L'Air Du Jour 150 75 150 $416 $300 $1,249 $1,966Make-up Galore 175 10 175 $486 $40 $1,458 $1,984Nuttin Homely 100 35 100 $277 $140 $833 $1,251
Totals 2,500 1,100 2,500 $6,944 $4,400 $20,833 $32,177
Customer Analysis
C-Stores(000')
Store Name Sales COGS G. Margin T. Cost Profit/Store
Cosmo Naturelle $3,500 $1,400 $2,100 $786 $1,313La Belle Femme $5,000 $2,000 $3,000 $2,302 $697Beautyss Bliss $10,000 $4,000 $6,000 $5,599 $400Looking Good $1,500 $600 $900 $873 $26Love Your Style $5,000 $2,000 $3,000 $3,533 ($533)Nuttin Homely $1,000 $400 $600 $1,251 ($651)Make-up Galore $2,000 $800 $1,200 $1,984 ($784)Wild by Nature $3,000 $1,200 $1,800 $2,622 ($822)Beautee Fatale $1,000 $400 $600 $1,511 ($911)Fruity Beauty $1,500 $600 $900 $1,813 ($913)L'Air Du Jour $1,000 $400 $600 $1,966 ($1,366)Tuti Fruity $2,000 $800 $1,200 $3,577 ($2,377)Le Beau Monsieur $2,500 $1,000 $1,500 $4,355 ($2,855)
Totals $39,000 $15,600 $23,400 $32,172 ($8,776)
Pareto Results
• Keep as Customers:– Looking Good– Beautyss Bliss– Cosmo Naturelle– La Belle Femme
• Get rid of the rest, or increase Ordering, Packaging, and Delivery charges.
Profitability Analysis -- RetailGross Sales
Margin 65,000,000
Net 39,000,000
Profit Cost of Goods Sold Transportation
Net Profit 23,713,889 26,000,000 8,333,333
Margin Total Packaging
36.48% / Expenses Variable Expenses 3,200,000
15,286,111 15,286,111 Order Processing
Sales 2,777,778
(Net Profit/ 65,000,000 Income Fixed Expenes Other
Return on Net Sales) Taxes - -
Assets - Inventory Carrying
975,000
203.61% *
Inventory
(Net Profit/ Sales 6,500,000
Total Assets) Asset 65,000,000 Current
Turnover Assets Accounts
5.58 / 11,646,666 Receivable
Total 5,146,666
(Net Sales/ Assets Fixed
Total Assets) 11,646,666 Assets Other Current
- Assets
-
Profitability Analysis -- C-StoresGross Sales
Margin 39,000,000
Net 23,400,000
Profit Cost of Goods Sold Transportation
Net Profit (9,167,778) 15,600,000 20,833,333
Margin Total Packaging
-23.51% / Expenses Variable Expenses 4,400,000
32,567,778 32,567,778 Order Processing
Sales 6,944,444
(Net Profit/ 39,000,000 Income Fixed Expenes Other
Return on Net Sales) Taxes - -
Assets - Inventory Carrying
390,000
-122.65% *
Inventory
(Net Profit/ Sales 2,600,000
Total Assets) Asset 39,000,000 Current
Turnover Assets Accounts
5.22 / 7,475,000 Receivable
Total 4,875,000
(Net Sales/ Assets Fixed
Total Assets) 7,475,000 Assets Other Current
- Assets
-
Profitability Analysis -- Mass M.Gross Sales
Margin 26,000,000
Net 15,600,000
Profit Cost of Goods Sold Transportation
Net Profit 11,915,556 10,400,000 833,333
Margin Total Packaging
45.83% / Expenses Variable Expenses 400,000
3,684,444 3,684,444 Order Processing
Sales 277,778
(Net Profit/ 26,000,000 Income Fixed Expenes Labeling
Return on Net Sales) Taxes - 2,000,000
Assets - Inventory Carrying
173,333
97.36% *
Inventory
(Net Profit/ Sales 1,155,555
Total Assets) Asset 26,000,000 Current
Turnover Assets Accounts
2.12 / 2,238,888 Receivable
Total 1,083,333
(Net Sales/ Assets Fixed
Total Assets) 12,238,888 Assets Other Current
10,000,000 Assets
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