Cost and Mountain Man Light

771 Words Oct 17th, 2010 4 Pages
Financial Projections
Year Revenues from MM beer 2006 $49,431,200 2007 2008 2009 2010 $48,442,576 $47,473,724 $46,524,250 $45,593,765 Assumptions- no price changes 2% Decrease in Market Size and no light product- Gross Margin remains the same

Contribution Loss of Contribution

15,323,672 766,184

15,017,199 750,860

14,716,855 735,843

14,422,517 721,126

14,134,067 706,703

5% Loss due to light beer entry .05 * Contribution

Launch advertising costs Incremental SG&A expenditures Incremental costs associated with Light Product E.C. Light Market Assumed Market for ligth beer (b/s) *1 Market share for Mountain Man Light Barrels sold Mountain Man Light Contribution of Light Product *2 Net change in contribution *3 Discount
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Beer consumption from premium & popular brewers Average % share of E.C. beer consumption Average % share of E.C. Light Beer consumption Average % share of 'Other Brand ' E.C. Light Beer Consumption (minus top 3 competitors and imports) Assume .25% and 0.5% share of E.C. Light Beer market 2 years to obtain projected sales of Mountain Man Light Months to break even

50440000 520000 97 66.93 4% 5% 750547

4.69 30.07 25.38 29572 750000 900000 65, 012

94584 2.04% 0.25% 0.51% 3.60% 46861 24.2

$1,471,073 750,000 1,800,000 $4,021,073 158,435 1.70% 0.21% 0.42% 3.02% 150,104 25.3

Status Quo Scenario for Mountain Man Brewing

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