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  • Exhibit 10 (Reliance Baking Soda) : Manufacturer's Price Per Case

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    hope 23
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    The document provides sales, cost, and marketing expense data for Reliance Baking Soda for 2005-2007. It asks for 2008 budget values based on the provided strategy. The assistant provides the following assumptions and calculations for the 2008 values: - Factory shipments will increase 5% based on continued growth. Costs will increase 4% due to inflation. - Advertising will decrease 10% as the brand becomes more established. Other marketing will remain flat. - Profits will increase to 35% of sales based on efficiency gains. Sales will increase 3% on steady growth.

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    rbs

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    RBS Exbh 10 Template

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    The document provides sales, cost, and marketing expense data for Reliance Baking Soda for 2005-2007. It asks for 2008 budget values based on the provided strategy. The assistant provides the following assumptions and calculations for the 2008 values: - Factory shipments will increase 5% based on continued growth. Costs will increase 4% due to inflation. - Advertising will decrease 10% as the brand becomes more established. Other marketing will remain flat. - Profits will increase to 35% of sales based on efficiency gains. Sales will increase 3% on steady growth.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    77 views2 pages

    Exhibit 10 (Reliance Baking Soda) : Manufacturer's Price Per Case

    Uploaded by

    hope 23
    The document provides sales, cost, and marketing expense data for Reliance Baking Soda for 2005-2007. It asks for 2008 budget values based on the provided strategy. The assistant provides the following assumptions and calculations for the 2008 values: - Factory shipments will increase 5% based on continued growth. Costs will increase 4% due to inflation. - Advertising will decrease 10% as the brand becomes more established. Other marketing will remain flat. - Profits will increase to 35% of sales based on efficiency gains. Sales will increase 3% on steady growth.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Keeping in mind objective of Regnate, provide the

    Exhibit 10 (Reliance Baking Soda) values for 2008 Budget based on your strategy
    Manufacturer's Price Per Case $/% 2005 2006 2007E
    8 oz. $ 6.18 6.37 7.20
    1 lb. $ 10.33 10.64 12.02
    5 lb. $ 46.63 48.03 54.28

    Factory Shipments (in 000's of cases)


    8 oz. 640 793 714
    1 lb. 1099 1362 1226
    5 lb. 581 720 648

    Variable Manufacturing Cost Per Case


    8 oz. $ 3.02 3.05 3.38
    1 lb. $ 4.98 5.03 5.58
    5 lb. $ 22.12 22.34 24.80
    Gross Sales $ 42400 54125 55051
    Variable Manufacturing Costs $ 20258 25354 25325
    Gross Margin $ 22142 28771 29726
    % 52 53 54

    Advertising
    TV $ 2862 4453 3815
    Print $ 687 950 694
    Internet $ 76 238 248
    Total Advertising $ 3625 5641 4757
    PR/Media Production Costs $ 191 297 198
    Consumer Promotion $ 424 1080 551
    Trade Promotion $ 4240 5938 5505
    Total Marketing Expenses $ 8480 12956 11011
    Profit before SG&A, Overhead and Taxes $ 13662 15814 18715
    % 32 29 34

    *E & OE
    Please provide logical assumptions, reason and implication for values you have taken for each
    of the different component. Try using excel formula's for calculation.
    Notes for 2008 Calculations (e.g., assumptions, rationale, implications)

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