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    Sunil Patel
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    The document summarizes the costs and margins associated with selling 200 Centac 200 compressors through three different sales channels: direct sales, independent distributors, and air centers. It calculates the gross margin per unit after factoring in costs of the compressor, installation, spare parts, and margins. It then estimates sales and resulting gross margins through each channel, as well as total sales and costs to the company.

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    The document summarizes the costs and margins associated with selling 200 Centac 200 compressors through three different sales channels: direct sales, independent distributors, and air centers. It calculates the gross margin per unit after factoring in costs of the compressor, installation, spare parts, and margins. It then estimates sales and resulting gross margins through each channel, as well as total sales and costs to the company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    10 views1 page

    Parameters

    Uploaded by

    Sunil Patel
    The document summarizes the costs and margins associated with selling 200 Centac 200 compressors through three different sales channels: direct sales, independent distributors, and air centers. It calculates the gross margin per unit after factoring in costs of the compressor, installation, spare parts, and margins. It then estimates sales and resulting gross margins through each channel, as well as total sales and costs to the company.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Parameters Calculation Totals

    Cost of Centac 200 $225*200 $45000

    Installation cost 12% $45000 $5400


    Spare parts and 2%*$45000 $900
    maintenance cost
    Gross Margin on 15%*$45000 $6750
    Compressors
    Gross Margin on Spare 30%*$900 $270
    parts

    Direct sales Independent Air Centres


    Distributors
    Gross Margin per $6750+$270- $6750-$5400= $6750+$270-$5400
    unit $5400=$1620 $1350 =$1620
    Sales 30% of 200=60 35% of 200= 20% of 200= 40
    70
    Gross Margin per 60*$1620= 70*$13500= 40*$16200=
    Market $97200 $94500 $64800
    Sales 200*0.22= 200*0.32= 200*0.46=92
    44 units 64
    Total Sales 44*45000= 64*45000= 92*$45000=
    $1980000 $2880000 4140000
    Cost to the 0.11*1980000= 0.21*2880000= 0.19*4140000=
    company $217800 $604800 $786600

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