Man Brewing Company Written Case Analysis Free Essay, Term Paper and Book Report
Projected Profits for 2010
If Mountain Man Brewing Company (MMBC) does nothing than the company sales will continue to decrease at a rate of 2 percent a year, during 2005 company sales are 50,440,000, continuing for a period of 5 years the company sales for 2010 will be 50,440,000 x (1-0.02)5 = $ 45,593,765, companys cost of goods sold, which are variable cost will remain also at 69 percent of sales, and the companys gross margin will be $14,134,068. We have assumed that Companys SG&A expenses will remain fixed as well as Other Operation Expenses at the level of respectively at $9,583,600 and $1,412,320. Other Operating income also we assumed that is not influenced from the level of sales, and we kept it as a fixed income. Provision for Income Taxes seems to have a direct relation with Net Income before Taxes, at a level of 35 percent of tax rate that seems acceptable. As a result, Projected Net Income before Taxes for 2010 would be $3,289,468 (See Exhibit 1).
Sales to be achieved to break even in the first year
In order for the company to breakeven with its new line of th......
Word Count: 1472
Page Count: 5.8 (250 words a page / double spaced)
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