Download as xlsx, pdf, or txt
Download as xlsx, pdf, or txt
You are on page 1of 4

"planing Horizo

Planing Values Year 1 year 2


Sales 40,000
Planned Growth 10%
> % Change Volume 10%
Planned Sales Vol 40,000 44,000
Actual Sales volume 44,000 48,400

Product Price 8.00


Price Increases 0.30
>% Change Price 0%
Planned Price 8.00 8.30
Actual Price 8.00 8.30

Sales Revenue 352,000 401,720

> Inflation 0% 3%

Variable Unit Costs


Raw Material 3.00 3.00 3.09
Labour Costs 2.00 2.00 2.06
Packaging 0.90 0.90 0.93
Distribution 1.00 1.00 1.03
Total Unit Cost 6.90 7.11

Direct Costs 303600 343979

Gross Profit 48,400 57,741

Fixed Costs 10,000 10,000 10,000

Net Profit Before Tax 38,400 47,741


Less: Tax @ 23% 8,832 10,980

> Net Profit After Tax 29,568 36,761

Result Table for each scenario showing net profits after tax:

"Planning Hor
Year 1 Year 2
> Base Case------ INFLATION----(3%,5%, 6%) 26,180 32,719
> Scenario 1 -----HIGH INFLATION ---- 26180 25706

52576
> Scenario 2 ----- VOLUME (3%) & Price (10%) Increases 62895

> Scenario 3 ----- VARYING SALES VOLUME FROM -5% to +10%


Sales Vol = -5% 24,486 30,698
Sales Vol =0% 26,180 32,719
Sales Vol = +5% 27,874 34,740
Sales Vol = 10% 29,568 36,761

Graphical Representation
Senario 3: Comparison of Profits

150000
140000
130000
120000
110000 Series4
100000
Series3
90000
80000
Series2
70000 Series1
60000
50000
40000
30000
20000
10000
0
1 2 3 4
"planing Horizon"
year 3 year 4 Total

48,400 53,240 185640.00


53,240 58,564 204204.00

8.60 8.90 33.80


8.60 8.90 33.80

457,864 521,220 1732803.60

5% 6%

3.24 3.44
2.16 2.29
0.97 1.03
1.08 1.15
7.46 7.91

397296 463247 1508120.88

60,568 57,973

10,000 10,000

50,568 47,973
11,631 11,034

38,938 36,939 142205.69

fits after tax:- Case Study 3.2

"Planning Horizon"
Year 3 Year 4 Totals
34,698 ### 126,478 126,478
18420 7425 77731

68982 71678 256131

32,578 ### ###


34,698 ### ###
36,818 ### ###
38,938 ### ###

ntation
fits

Series4
Series3
Series2
Series1

You might also like