"plani

Planing Values

Sales

Year 1

Year 2

Year 3

Year 4

40,000

Planned Growth
> % Change Volume
Planned Sales Vol
Actual Sales volume

10%
0%

Product Price

40000
40000

44000
44000

48400
48400

53240
53240

8.00
8.00

8.30
8.30

8.60
8.60

8.90
8.90

320000

365200

416240

473836

0%

5%

8%

8%

3.00
2.00
0.90
1.00
6.90

3.15
2.10
0.95
1.05
7.25

3.40
2.27
1.02
1.13
7.82

3.67
2.45
1.10
1.22
8.45

Direct Costs

276000

318780

378711

449908

Gross Profit

44000

46420

37529

23928

10000

10000

10000

10000

34000

36420

27529

13928

7820
26180

8377
28043

6332
21198

3203
10724

Price Increases
>% Change Price
Planned Price
Actual Price

0.30
0%

Sales Revenue
> Inflation
Variable Unit Costs
Raw Material
Labour Costs
Packaging
Distribution
Total Unit Cost

Fixed Costs
Net Profit Before Tax
Less: Tax @

3.00
2.00
0.90
1.00

10,000

23%

> Net Profit After Tax

Result Table for each scenario showing net profits after tax:- Case Study 3.2

"Planni
> Base Case------ INFLATION----(3%,5%, 6%)

Year 1
26180

Year 2
28043

Year 3
21198

Year 4
10724

> Scenario 3 ----- VARYING SALES VOLUME FROM 15% to +10%

11,396
18788
26180
33,572
40964
48356

Sales Vol = -6%

Sales Vol =-3%
Sales Vol = 0%
Sales Vol = 3%
Sales Vol = 6%
Sales Vol = 9%

11,171
19607
28043
36,480
44916
53352

1,967
11582
21198
30,813
40428
50043

-11,167
-221
10724
21,670
32616
43561

Graphical Representation
Senario 3: Comparison of Profits
250000
200000
150000
Sales Vol = 9%

100000

Sales Vol = 6%

50000

Sales Vol = 3%

0
-50000
-100000
-150000
-200000
-250000

1 2 3 4 5 6 7 8 9 10 11

Sales Vol = 0%
Sales Vol =-3%
Sales Vol = -6%

"planing Horizon"
year 5
Year 6
Year 7

Year 8

Year 9

Year 10

total

58564
58564

64420
64420

70862
70862

77949
77949

85744
85744

94318
94318

9.20
9.20

9.50
9.50

9.80
9.80

10.10
10.10

10.40
10.40

10.70
10.70

538789

611994

694452

787282

891733

1009202

11%

9%

2%

2%

2%

2%

4.08
2.72
1.22
1.36
9

4.45
2.96
1.33
1.48
10.22

4.53
3.02
1.36
1.51
10.43

4.62
3.08
1.39
1.54
10.64

4.72
3.14
1.42
1.57
10.85

4.81
3.21
1.44
1.60
11.07

549338

658656

739012

829172

930331

1043831

-10549

-46662

-44560

-41890

-38598

-34629

10000

10000

10000

10000

10000

10000

-20549

-56662

-54560

-51890

-48598

-44629

-4726
-15823

-13032
-43630

-12549
-42011

-11935
-39955

-11177
-37420

-10265
-34365

- Case Study 3.2

"Planning Horizon"
Year 5
-15822.85

Year 6

Year 7

Year 8

Year 9

-43630.1

-42011.5

-39955.3

-37420.3

Year 10
-34364.7

total

ales Vol = 9%

ales Vol = 6%

ales Vol = 3%

ales Vol = 0%

ales Vol =-3%

ales Vol = -6%

-40,715
-28269
-15823
-3,377
9069
21515

-71,904 -74,095 -76,328 -78,618 -80,990

-57767 -58053 -58142 -58019 -57677
-43630 -42011 -39955 -37420 -34365
-29,493 -25,970 -21,769 -16,821 -11,052
-15356 -9928
-3583
3778
12260
-1219
6114
14603 24377 35573

100s
5
10
15
20
25
30

50s
10
20
25
30
35
40

AVG
66.7
66.7
68.8
70.0
70.8
71.4

RANK
6TH
5TH
4TH
3RD
2ND
1ST

SALARY
6th
5th
4th
3rd
2nd
1st