Product A Product B Product C Total

Units Sold 2,000.00 1,000.00 500.00 3,500.00

Price $ 1.50 $ 2.00 $ 3.00 1.86 100%
Acquisition. Cost $ 0.80 $ 1.00 $ 1.75 0.99 53%
Gross Margin $ 0.70 $ 1.00 $ 1.25 0.86 47%
Direct Product Costs $ 0.56 $ 0.78 $ 1.15 0.71 38%
Warehouse costs $ 0.16 $ 0.18 $ 0.30 0.19 10%
Transport costs $ 0.18 $ 0.45 $ 0.40 0.29 16%
Store costs $ 0.22 $ 0.15 $ 0.45 0.23 13%
Direct Product Profitability $ 0.14 $ 0.22 $ 0.10 0.16 8%

Product A Product B Product C Total

Units Sold 2,000.00 1,000.00 500.00 3,500.00
Revenues $ 3,000.00 $ 2,000.00 $ 1,500.00 6,500.00 100%
Acquisition. Cost $ 1,600.00 $ 1,000.00 $ 875.00 3,475.00 53%
Gross Margin $ 1,400.00 $ 1,000.00 $ 625.00 3,025.00 47%
Direct Product Costs $ 1,120.00 $ 780.00 $ 575.00 2,475.00 38%
Warehouse costs $ 320.00 $ 180.00 $ 150.00 650.00 10%
Transport costs $ 360.00 $ 450.00 $ 200.00 1,010.00 16%
Store costs $ 440.00 $ 150.00 $ 225.00 815.00 13%
Direct Product Profitability $ 280.00 $ 220.00 $ 50.00 550.00 8%
 Product A Product B Product C
Units Sold 2,000.00 1,000.00 500.00
Price 100% 100% 100%
Acquisition. Cost 53% 50% 58%
Gross Margin 47% 50% 42%
Direct Product Costs 37% 39% 38%
Warehouse costs 11% 9% 10%
Transport costs 12% 23% 13%
Store costs 15% 8% 15%
Direct Product Profitability 9% 11% 3%

Product A Product B Product C

Units Sold 57% 29% 14%
Price 46% 31% 23%
Acquisition. Cost 46% 29% 25%
Gross Margin 46% 33% 21%
Direct Product Costs 45% 32% 23%
Warehouse costs 49% 28% 23%
Transport costs 36% 45% 20%
Store costs 54% 18% 28%
Direct Product Profitability 51% 40% 9%
 $ Own Channel Distributor Online
Units sold (quantity)
Selling price
Unitary production cost
Distributor fee per unit
Distribution costs per unit

Sales
Production cost
Distribution cost

Profit
Profit per unit
Profit (% of price)

$ Own Channel Distributor Online

Units sold (quantity) 2,000.00 10,000.00 60,000.00
Selling price 20.00 20.00 18.00
Unitary production cost 9.60 9.60 8.64
Distributor fee per unit 5.00 9.00
Distribution costs per unit 3.50

Sales 40,000.00 200,000.00 1,080,000.00

Production cost 19,200.00 96,000.00 518,400.00
Distribution cost - 85,000.00 540,000.00

Profit 20,800.00 19,000.00 21,600.00

Profit per unit 10.40 1.90 0.36
Profit (% of price) 52% 10% 2%
Table 2. Net sales and contribution margin per channel.

BRL Wholesalers Large Shops Super-markets

Units (boxes) 236 2,058 168
Net Sales 401,909 3,553,280 339,979
Chocolates 10,693 88,355 6,597
Yogurts 143,168 1,432,018 211,029
Milk 213,712 1,881,889 86,047
Desserts 34,336 151,018 36,306
Variable Costs 224,038 1,931,658 195,781
Chocolates 5,636 46,186 3,426
Yogurts 75,520 713,289 121,846
Milk 124,008 1,105,342 51,156
Desserts 18,874 66,841 19,353
Contribution Margin 177,871 1,621,622 144,198
Chocolates 5,057 42,169 3,171
Yogurts 67,648 718,729 89,183
Milk 89,704 776,547 34,891
Desserts 15,462 84,177 16,953

Table 3. Contribution margin as percentage of net sales.

% Net Sales Wholesalers Large Shops Super-markets

Contribution Margin
Chocolates
Yogurts
Milk
Desserts

Table 4. Cost-to-serve structure.

Wholesalers Large Shops Super-markets

Cost-to-Serve (BRL) 34,197 1,378,067 135,343
Distribution Freight 18,122 310,231 31,404
Warehousing 8,041 69,971 7,044
Biling 1,435 13,442 2,428
Collecting 620 5,804 1,048
Sales Promotion - 204,789 15,131
Sales 5,979 84,953 14,143
Merchandising - 688,877 64,145
Cost-to-Serve (% CTS)
Distribution Freight
Warehousing
Biling
Collecting
Sales Promotion
Sales
Merchandising
Cost-to-Serve (% Sales)
Distribution Freight
Warehousing
Biling
Collecting
Sales Promotion
Sales
Merchandising
Cost-to-Serve (BRL/unit)
Distribution Freight
Warehousing
Biling
Collecting
Sales Promotion
Sales
Merchandising

Table 5. Margin after cost-to-serve.

BRL Wholesalers Large Shops Super-markets

Contribution Margin
Chocolates
Yogurts
Milk
Desserts
Cost-to-Serve (CTS) 34,197 1,378,065 135,342
Chocolates 764 27,198 2,721
Yogurts 12,521 645,003 89,085
Milk 18,195 642,328 30,195
Desserts 2,717 63,536 13,341
Margin after CTS
Chocolates
Yogurts
Milk
Desserts

* Cost-to-Serve (CTS) per product calculated using Activity-Based Costing (ABC).

Table 6. Margin after cost-to-serve (%).

% Net Sales Wholesalers Large Shops Super-markets

Contribution Margin
Chocolates
Yogurts
Milk
Desserts
Cost-to-Serve (CTS)
Chocolates
Yogurts
Milk
Desserts
Margin after CTS
Chocolates
Yogurts
Milk
Desserts
Medium Retail Total
390 2,848
762,257 5,057,425
16,351 121,996
411,178 2,197,393
261,643 2,443,291
73,085 294,745
455,659 2,807,136
9,193 64,441
245,017 1,155,672
160,482 1,440,988
40,967 146,035
306,598 2,250,289
7,158 57,555
166,161 1,041,721
101,161 1,002,303
32,118 148,710

Medium Retail Total

Medium Retail Total

295,146 1,842,753
71,384 431,141
15,351 100,407
5,175 22,480
2,235 9,707
26,446 246,366
26,298 131,373
148,257 901,279
Medium Retail Total

295,146 1,842,750
5,921 36,604
167,493 914,102
92,821 783,539
28,911 108,505
Costing (ABC).

Medium Retail Total

Table 2. Net sales and contribution margin per channel.

BRL Wholesalers Large Shops Super-markets

Units (boxes) 236 2,058 168
Net Sales 401,909 3,553,280 339,979
Chocolates 10,693 88,355 6,597
Yogurts 143,168 1,432,018 211,029
Milk 213,712 1,881,889 86,047
Desserts 34,336 151,018 36,306
Variable Costs 224,038 1,931,658 195,781
Chocolates 5,636 46,186 3,426
Yogurts 75,520 713,289 121,846
Milk 124,008 1,105,342 51,156
Desserts 18,874 66,841 19,353
Contribution Margin 177,871 1,621,622 144,198
Chocolates 5,057 42,169 3,171
Yogurts 67,648 718,729 89,183
Milk 89,704 776,547 34,891
Desserts 15,462 84,177 16,953

Table 3. Contribution margin as percentage of net sales.

% Net Sales Wholesalers Large Shops Super-markets

Contribution Margin 44.3% 45.6% 42.4%
Chocolates 47.3% 47.7% 48.1%
Yogurts 47.3% 50.2% 42.3%
Milk 42.0% 41.3% 40.5%
Desserts 45.0% 55.7% 46.7%

Table 4. Cost-to-serve structure.

Wholesalers Large Shops Super-markets

Cost-to-Serve (BRL) 34,197 1,378,067 135,343
Distribution Freight 18,122 310,231 31,404
Warehousing 8,041 69,971 7,044
Biling 1,435 13,442 2,428
Collecting 620 5,804 1,048
Sales Promotion - 204,789 15,131
Sales 5,979 84,953 14,143
Merchandising - 688,877 64,145
Cost-to-Serve (% CTS) 100.0% 100.0% 100.0%
Distribution Freight 53.0% 22.5% 23.2%
Warehousing 23.5% 5.1% 5.2%
Biling 4.2% 1.0% 1.8%
Collecting 1.8% 0.4% 0.8%
Sales Promotion 0.0% 14.9% 11.2%
Sales 17.5% 6.2% 10.4%
Merchandising 0.0% 50.0% 47.4%
Cost-to-Serve (% Sales) 8.5% 38.8% 39.8%
Distribution Freight 4.5% 8.7% 9.2%
Warehousing 2.0% 2.0% 2.1%
Biling 0.4% 0.4% 0.7%
Collecting 0.2% 0.2% 0.3%
Sales Promotion 0.0% 5.8% 4.5%
Sales 1.5% 2.4% 4.2%
Merchandising 0.0% 19.4% 18.9%
Cost-to-Serve (BRL/unit) 145 670 806
Distribution Freight 77 151 187
Warehousing 34 34 42
Biling 6 7 14
Collecting 3 3 6
Sales Promotion - 100 90
Sales 25 41 84
Merchandising - 335 382

Table 5. Margin after cost-to-serve.

BRL Wholesalers Large Shops Super-markets

Contribution Margin 177,871 1,621,622 144,198
Chocolates 5,057 42,169 3,171
Yogurts 67,648 718,729 89,183
Milk 89,704 776,547 34,891
Desserts 15,462 84,177 16,953
Cost-to-Serve (CTS) 34,197 1,378,067 135,343
Chocolates 764 27,198 2,721
Yogurts 12,521 645,003 89,085
Milk 18,195 642,328 30,195
Desserts 2,717 63,536 13,341
Margin after CTS 143,674 243,555 8,855
Chocolates 4,293 14,971 450
Yogurts 55,127 73,726 98
Milk 71,509 134,219 4,696
Desserts 12,745 20,641 3,612

* Cost-to-Serve (CTS) per product calculated using Activity-Based Costing (ABC).

Table 6. Margin after cost-to-serve (%).

% Net Sales Wholesalers Large Shops Super-markets

Contribution Margin 44.3% 45.6% 42.4%
Chocolates 47.3% 47.7% 48.1%
Yogurts 47.3% 50.2% 42.3%
Milk 42.0% 41.3% 40.5%
Desserts 45.0% 55.7% 46.7%
Cost-to-Serve (CTS) 8.5% 38.8% 39.8%
Chocolates 7.1% 30.8% 41.2%
Yogurts 8.7% 45.0% 42.2%
Milk 8.5% 34.1% 35.1%
Desserts 7.9% 42.1% 36.7%
Margin after CTS 35.7% 6.9% 2.6%
Chocolates 40.1% 16.9% 6.8%
Yogurts 38.5% 5.1% 0.0%
Milk 33.5% 7.1% 5.5%
Desserts 37.1% 13.7% 9.9%
Medium Retail Total
390 2,848
762,257 5,057,425
16,351 121,996
411,178 2,197,393
261,643 2,443,291
73,085 294,745
455,659 2,807,136
9,193 64,441
245,017 1,155,672
160,482 1,440,988
40,967 146,035
306,598 2,250,289
7,158 57,555
166,161 1,041,721
101,161 1,002,303
32,118 148,710

Medium Retail Total

40.2% 44.5%
43.8% 47.2%
40.4% 47.4%
38.7% 41.0%
43.9% 50.5%

Medium Retail Total

295,146 1,842,753
71,384 431,141
15,351 100,407
5,175 22,480
2,235 9,707
26,446 246,366
26,298 131,373
148,257 901,279
 100.0% 100.0%
24.2% 23.4%
5.2% 5.4%
1.8% 1.2%
0.8% 0.5%
9.0% 13.4%
8.9% 7.1%
50.2% 48.9%
38.7% 36.4%
9.4% 8.5%
2.0% 2.0%
0.7% 0.4%
0.3% 0.2%
3.5% 4.9%
3.5% 2.6%
19.4% 17.8%
757 647
183 151
39 35
13 8
6 3
68 87
67 46
380 316

Medium Retail Total

306,598 2,250,289
7,158 57,555
166,161 1,041,721
101,161 1,002,303
32,118 148,710
295,146 1,842,753
5,921 36,604
167,493 914,102
92,821 783,539
28,911 108,505
11,452 407,536
1,237 20,951
- 1,332 127,619
8,340 218,764
 3,207 40,205

Costing (ABC).

Medium Retail Total

40.2% 44.5%
43.8% 47.2%
40.4% 47.4%
38.7% 41.0%
43.9% 50.5%
38.7% 36.4%
36.2% 30.0%
40.7% 41.6%
35.5% 32.1%
39.6% 36.8%
1.5% 8.1%
7.6% 17.2%
-0.3% 5.8%
3.2% 9.0%
4.4% 13.6%