Guthrie’s Measures of Product Profitability on Product Line BA 315/4700 MARKETING MANAGEMENT
Guthrie’s 1990 SALES $ 1,410,000 Product Line Kitchen Phonographic Television VCR/Videodisc Square Foot 12,000 4,000 6,
Guthrie’s 1990 SALES $ 1,410,000 Product Line Kitchen Phonographic Television VCR/Videodisc Sales Per Square Foot 800,000/12,000 = ,000/4,000 = ,000/6,000 = ,000/600 = 1,000
Guthrie’s 1992 SALES $1,810,000 Product Line Kitchen Phonographic Television VCR/Videodisc Square Foot 10,000 3,000 8,000 1,600
Guthrie’s 1992 SALES $1,810,000 Product Line Kitchen Phonographic Television VCR/Videodisc Sales Per Square Foot 850,000/10,000 = ,000/3,000 = ,000/8,000 = ,000/1,600 = 150
Guthrie’s 1990 Product Line Kitchen Phonographic Television VCR/Videodisc Inventory Turnover 800,000/200,000 = 4 150,000/25,000 = 6 400,000/100,000 = 4 600,000/120,000 = 5
Guthrie’s 1992 Product Line Kitchen Phonographic Television VCR/Videodisc Inventory Turnover 850,000/200,000 = ,000/18,000 = ,000/125,000 = ,000/40,000 = 6
Guthrie’s 1990 Product Line Kitchen Phonographic Television VCR/Videodisc Gross-Margin Return Per Square Foot 66.7 x.30 = x.40 = x.25 = ,000 x.30 = 30.0
Guthrie’s 1992 Product Line Kitchen Phonographic Television VCR/Videodisc Gross-Margin Return Per Square Foot 85 x.25 = x.40 = x.25 = x.25 = 37.5
Guthrie’s 1990 Product Line Kitchen Phonographic Television VCR/Videodisc Gross-Margin Return on Inventory Investment 4 x.30 = x.40 = x.25 = 1 5 x.30 = 1.5
Guthrie’s 1992 Product Line Kitchen Phonographic Television VCR/Videodisc Gross-Margin Return on Inventory Investment 4.25 x.25 = x.40 = x.25 = x.25 = 1.5
Guthrie’s SPACE IS THEIR CRITICAL ASSET Sales growth coming from TV, can support the increased space devoted to TV-VCR… sales probably correlated ex TV +$200,000with 2000ft addition ($100/sq ft) (can debate the productivity of this added space) Phono highest GMROI but lowest on GM/sq ft KITCHEN STILL MAJOR LINE, WEAK SALES GROWTH, LOW GMROI BUT NEEDS THIS FOR ASSORTMENT
The End Guthrie’s