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Unit Kanchipuram Silk Benaras Silk Embroidery

Category Role Destination Speciality Speciality

Purchase Decision Hierarchy Flagship Cash Machines Grow Margin

Average Purchase price $ 123.08 110.58 112.5

Average Sale Price $ 162.97 146.42 148.96

Inventory Pieces 970 415 286

Monthly quantity sold Pieces 648 261 187

Shelf space allocated Ft 25 20 15Time spent by sales person No of hrs 3 1 1

Payment terms for vendors Days 30 90 45

Monthly Revenue $ 105604.56 38215.62 27855.52

Monthly Purchase Cost $ 79755.84 28861.38 21037.5

Absolute margin $ 39.89 35.84 36.46

Total Margin $ 25848.72 9354.24 6818.02

Margin % % 32.4 32.4 32.4

Stock unsold Pieces 322 154 99

% shelf space allocated % 20 16 12

Inventory Turnover Ratio Days 44.90740741 47.70114943 45.88235294

Avg Accounts Payable $ 79755.84 9620.46 14025

Revenue/ Shelf space $/ ft 4224.1824 1910.781 1857.034667

Abs Margin/ Shelf space $/ ft 1033.9488 467.712 454.5346667

GMROF $/ft 1368.635098 619.093044 601.679232

GMROI $/ft 1033.635686 467.554356 454.41

51.80653445 18.74731778 13.66520582

Credit 13783.04 7675.08 4319.48

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Cotton Ready to stitch Materials Dhotis

Routine Convenience Convenience Convenience

Cash Machines Grow Margin Core Traffic Grow Sales

14.23 12.98 4.81 12.98

18.84 17.19 6.37 17.19

2860 2222 4650 135

1938 1435 3229 75

30.25 10 20 4.75 1251 0.5 1.5 0

15 15 30 15

36511.92 24667.65 20568.73 1289.25 254713.25

27577.74 18626.3 15531.49 973.5 192363.75

4.61 4.21 1.56 4.21

8934.18 6041.35 5037.24 315.75 62349.5

32.4 32.4 32.4 32.4

922 787 1421 60

24.2 8 16 3.8

44.27244582 46.45296167 43.20222979 54

55155.48 37252.6 15531.49 1947 213287.87

1207.00562 2466.765 1028.4365 271.4210526 2037.706

295.3447934 604.135 251.862 66.47368421

391.0698208 799.23186 333.213426 87.94042105

295.3781078 603.49212 251.610138 66.40294737 498.796

17.91351126 12.09897674 10.08869911 0.6323507

4185.88 4173.91 1797.77 463.05 36398.21

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125

Cost Plus Pricing Scheme

Good Inventory Maintenance

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2010

254713.25

192363.75

62349.5

32,692.33

29,657.17

0.12

to 12%, displaying the inefficient pricing mechanism of constant markup for all products inspite

the shelf in addition to the purchase cost

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Shelf Space Apportioning

Unit anchipuram Silk Benaras Silk Embroidery Cotton

Monthly Revenue $ 105604.56 38215.62 27855.52 36511.92

Monthly Purchase $ 79755.84 28861.38 21037.5 27577.74

Shelf Space ft 25 20 15 30.25

Revenue/Shelf Spa Rs./ft 4224.1824 1910.781 1857.034667 1207.00562

New Shelf Space Ft 51.5 18.5 13.5 17.5

New Revenue/Shel Rs./ft 2050.573981 2065.709189 2063.371852 2086.395429

Kanchi Silk - Double the space would make the shelf look almost empty

Cotton & Materials - Halfing the space would make it would look cumbersom

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Unit Kanchipuram Silk Benaras Silk Embroidery

Category Role Destination Speciality Speciality

Purchase Decision Hierarchy Flagship Cash Machines Grow Margin

Average Purchase price $ 123.08 110.58 112.5

Average Sale Price $ 162.97 146.42 148.96

Inventory Pieces 970 415 286

Monthly quantity sold Pieces 648 261 187Shelf space allocated Ft 25 20 15

Time spent by sales per No of hrs 3 1 1

Payment terms for vend Days 30 90 45

Sales Cost for a

product $ 2.335858586 0.778619529 0.778619529

Utility Apportionment

based on Shelf Space $

749.36 599.488 449.616

Utility Apportionment

/ piece$ 1.156419753 2.296888889 2.404363636

New Avg Sale Price $ 126.5722783 113.6555084 115.6829832

New Sale Price $ 167.5816965 150.4798931 153.1642697

New Revenue $ 108592.9393 39275.25211 28641.71844

New P & L

Revenue 269846.9235

Cost 192363.75

Contribution 77483.1735

Expenses 32692.33333

Profit 44790.84017

Profit/Revenu 0.165986106

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Salary Annual Salary

Sales Staff 30 1850

Admin 3 2350

Others 2 1200

125 Cost of labor per day

Cost of labor per hour

Utilities Pro rata Apportioning

Cost 112404

Per day cost 3746.8

Apportioning based on Shelf space

269846.9235

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55500

7050

2400 Year

64950 264

Labor hrs / day7.007575758 9

0.778619529 Total Labor Hrs

2376

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Unit Kanchipuram Silk Benaras Silk Embroidery

Category Role Destination Speciality Speciality

Purchase Decision Hierarchy Flagship Cash Machines Grow Margin

Average Purchase price $ 123.08 110.58 112.5

Average Sale Price $ 162.97 146.42 148.96

Inventory Pieces 970 415 286

Monthly quantity sold Pieces 770 261 187Shelf space allocated Ft 29.75 20 15

Time spent by sales person No of hrs 3 1 1

Payment terms for vendors Days 30 90 45

Monthly Revenue $ 125486.9 38215.62 27855.52

Monthly Purchase Cost $ 94771.6 28861.38 21037.5

Absolute margin $ 39.89 35.84 36.46

Total Margin $ 30715.3 9354.24 6818.02

Margin % % 32.4 32.4 32.4

Stock unsold Pieces 200 154 99

% shelf space allocated % 23.8 16 12

Inventory Turnover Ratio Days 37.79220779 47.70114943 45.88235294

Avg Accounts Payable $ 94771.6 9620.46 14025

Revenue/ Shelf space $/ ft 4218.047059 1910.781 1857.034667

Abs Margin/ Shelf space $/ ft 1032.447059 467.712 454.5346667

GMROF $/ft 1366.647247 619.093044 601.679232

GMROI $/ft 1032.1344 467.554356 454.41GMROL $/hr

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Cotton Ready to stitch Materials

Routine Convenience Convenience

Cash Machines Grow Margin Core Traffic

14.23 12.98 4.81

18.84 17.19 6.37 Kanchi Units Inc

2860 2222 4650 0.188271605

1938 1435 322930.25 10 20 125

1 0.5 1.5

15 15 30

36511.92 24667.65 20568.73 273306.34

27577.74 18626.3 15531.49 206406.01

4.61 4.21 1.56

8934.18 6041.35 5037.24

32.4 32.4 32.4

922 787 1421

24.2 8 16

44.27244582 46.45296167 43.20222979

55155.48 37252.6 15531.49 226356.63

1207.00562 2466.765 1028.4365 2186.45072

295.3447934 604.135 251.862

391.0698208 799.23186 333.213426

295.3781078 603.49212 251.610138

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