Lusterlast-business year 2019

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Reference no: EM133058399

LusterLast®: Business Year 2019

Last year the company elected to hire a sales force. And, while sales appeared to be good, management wants Ashanti to investigate, which means, of course, that you will investigate.

You are provided with the following data. Your boss wants you to provide her figures on:

  • Salesforce Effectiveness based on last year's annual expenses and sales revenue.
  • Break-even number of employees.
  • Category Performance Ratio

LusterLast® Stats

Annual Sales Expenses ($)

Annual Sales

($)

Units Sold (#)

Annual Commissions ($)

Salaries

($)

Bonuses

($)

3,525,000

23,500,000

4,079,861

2,350,000

7,050,000

235,000

Industry Data

Sales Potential  ($)

Product Category Volume (%)

All Commodity Volume (%)

350,000,000

23

87

Use your contribution margin from the previous year if necessary. Submit your spreadsheet through the designated drop box. And, this time, instead of providing just commentary, also provide a graph illustrating two relationships you believe are essential and briefly explain your rationale.

Market Sales Revenue ($)

175,000,000

 

 

Unit Revenue Sales ($)

23,500,000

 

 

Market Share

67

 

 

 

 

 

 

Total Population

350,000,000

 

 

Luster Last Purchasers

15,000,000

 

 

Market penetration

4%

 

 

 

 

 

 

Total Shampoo con.

105,000,000

 

 

LusterLast purchaser

15,000,000

 

 

Brand penetration

14%

 

 

 

 

 

 

 

 

 

 

Margin %

-105.7

 

 

Unit margin

-6.09

 

 

Contribution margin

-17,298,610

 

 

Contribution per unit

-4.24

 

 

Channel margin

-5,797,483.09

 

 

Marketing as a percentage of sales

10%

 

 

extra note red corner

 

 

 

 

 

 

 

 

 

Amount

percent to sales

Company net loss

 

 

 

Luster Lash Purchasers

 

15000000

 

Retention Rate

 

0.9

 

Luster Lash Purchasers (retained)

13500000

 

Unit Selling Price

 

5.76

 

Total Sales($)

 

77760000

100.00%

Less: Discount

7776000

 

 

 

0.01

7776000

1.00%

Net Sales

 

76982400

99.00%

Variable Cost

13500000

 

 

 

10

135000000

173.61%

Negative Margin

 

-58017600

-74.61%

Less: Acqusition Spending

15000000

 

 

 

 

17250000

22.18%

Net Loss

 

-75267600

-96.79%






Reference no: EM133058399

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