Kris Beaudo, Steve Risler, Lisa Schlais, and Mary Stuiber Three Ladies and a Little Man Sales Plan for Three Ladies and a Little Man

Loan Situation

Total Loan Payments : $358, Interest is compounded monthly Total Interest Payments: $158, APR is 6.44% Loan Details

Rate of Depreciation

Depreciation Calculations Formula M= 0-300, M= M+ $10,000 annual depreciation y-300,000= 30000(x-0) y =30000x y= 30000x

Points of origin Purchase price - $330,000…..(30,000 allocated to land) Straight-line method- 30 years

Points of origin

Fixed & Variable Costs

Cost Assumptions InventoryWine AWine BWine CWine D Cost of inventory$9.25$19.00$25.00$32.50 Cost of inventory$8.25$16.50$21.50$26.00 Retail price of inventory$12.50$26.00$35.00$46.00 Profit (under 200 units)$3.25$7.00$10.00$13.50 Profit (over 200 units)$4.25$9.50$13.50$20.00 GPM %26.00%26.92%28.57%29.35% GPM %34.00%36.54%38.57%43.48%

Monthly Profit and Loss ProfitExpensesProfit / (Loss) Jan$3,084$4,033($949) Feb$3,572$4,033($461) Mar$5,395$4,033$1,362 Apr$3,980$4,033($53) May$4,191$4,033$158 Jun$5,585$4,033$1,552 Jul$6,181$4,033$2,148 Aug$6,570$4,033$2,537 Sep$6,988$4,033$2,955 Oct$11,047$4,033$7,014 Nov$7,924$4,033$3,891 Dec$8,447$4,033$4,414 TOTALS$72,966$48,396$24,570

Wine Profits

Break Even Analysis - Units

Supply And Demand Equilibrium Demand Curve Wine A Price $29$20$14$10$9 Qty Supply Curve Wine A Price $10$12$15$21$29 Qty Demand Curve Wine B Price $40$33$27$24$22 Qty Supply Curve Wine B Price $24$26$29$34$40 Qty

Supply And Demand Equilibrium Demand Curve Wine C Price $50$42$37$34$33 Qty Supply Curve Wine C Price $31$33$35$40$50 Qty Demand Curve Wine D Price $65$58$50$43$39 Qty Supply Curve Wine D Price $41$44$47$55$65 Qty

Profit Maximization of Wines A and B Retail Cost Wine A $13.50x+ Wine B $20.25x + Bottles of Wine 4y 2y Tota l < 200 Profit $4.75x $6.75y Maximization

Profit Maximization of Wines C and D Wine C 27.50x+ Wine D 33.75x+ Retail Cost 4y 2y Bottles of Wine <200 Total $11.00 X $14.75y Profit Maximization

The Matrix- Reference

Cost of Goods Sold Matrix

Cost and Retail Prices

Total Retail Revenue Matrix

Cost and Retail Prices

Three Ladies and a Little Man Wine