Mikes Bikes Results
77
Income Statement History MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013 2013 Sales Revenue $18,745,031 Less: Cost of Goods Sold $9,530,922 GROSS MARGIN $9,214,110 Selling & Distribution Expenses Salaries $200,000 Brand Advertising $350,000 Product Advertising $1,125,000 Product PR $920,000 Distribution Channel Support $855,462 Warranty Claims $185,759 Product Development Projects $0 Sales Of Obsolete Stock $0 Cost Of Obsolete Goods Sold $0 $3,636,220 Administration Expenses Salaries $300,000 Finished Goods Warehousing $69,700 Investor PR $300,000 Legal Fees $0 Miscellaneous Expense $0 Unallocated Factory Overhead $0 $669,700 Financial Expenses Interest on Overdraft $0 Interest on Debt to Owning Company $0 Interest on Long Term Debt $176,000 Debt to Owned Company Written Off $0 Takeover bids premiums and expenses $0
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Transcript of Mikes Bikes Results
Income Statement HistoryMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
2013
Sales Revenue $18,745,031Less: Cost of Goods Sold $9,530,922
GROSS MARGIN $9,214,110
Selling & Distribution ExpensesSalaries $200,000Brand Advertising $350,000Product Advertising $1,125,000Product PR $920,000Distribution Channel Support $855,462Warranty Claims $185,759Product Development Projects $0Sales Of Obsolete Stock $0Cost Of Obsolete Goods Sold $0
$3,636,220
Administration ExpensesSalaries $300,000Finished Goods Warehousing $69,700Investor PR $300,000Legal Fees $0Miscellaneous Expense $0Unallocated Factory Overhead $0
$669,700
Financial ExpensesInterest on Overdraft $0Interest on Debt to Owning Company $0Interest on Long Term Debt $176,000Debt to Owned Company Written Off $0Takeover bids premiums and expenses $0
$176,000
TOTAL OTHER EXPENSES $4,481,920
Other IncomeInterest on Cash in Bank $309,150Interest on Loans to Owned Companies $0Debt to Owning Company Written Off $0Miscellaneous Cash Windfall $0
TOTAL OTHER INCOME $309,150
Profit Before Taxation $5,041,339Less: Income Tax $1,663,642Plus: Tax Credit $0Profit After Taxation $3,377,697
Dividends received from Owned Companie $0
NET INCOME $3,377,697
2012 2011
$18,212,260 $14,105,463$11,103,470 $7,436,178
$7,108,790 $6,669,285
$150,000 $150,000$350,000 $350,000$970,000 $870,000$800,000 $630,000$444,981 $280,196$173,631 $169,786
$1,000,000 $0$0 $0$0 $0
$3,888,612 $2,449,981
$250,000 $250,000$126,600 $130,050$300,000 $300,000
$0 $0$0 $0$0 $0
$676,600 $680,050
$0 $0$0 $0
$176,000 $144,000$0 $0$0 $0
$176,000 $144,000
$4,741,212 $3,274,031
$245,982 $199,098$0 $0$0 $0$0 $0
$245,982 $199,098
$2,613,560 $3,594,351$862,475 $1,186,136
$0 $0$1,751,085 $2,408,215
$0 $0
$1,751,085 $2,408,215
2010 2009
$11,681,944 $12,090,008$6,944,796 $7,429,947
$4,737,148 $4,660,060
$200,000 $200,000$300,000 $100,000$630,000 $630,000$500,000 $500,000$261,547 $262,321$137,971 $145,643
$0 $0$0 $0$0 $0
$2,029,517 $1,837,964
$250,000 $250,000$126,850 $81,450$300,000 $300,000
$0 $0$0 $0$0 $0
$676,850 $631,450
$0 $0$0 $0
$144,000 $144,000$0 $0$0 $0
$144,000 $144,000
$2,850,367 $2,613,414
$153,424 $129,719$0 $0$0 $0$0 $0
$153,424 $129,719
$2,040,205 $2,176,366$673,268 $718,201
$0 $0$1,366,937 $1,458,165
$0 $0
$1,366,937 $1,458,165
2008
$13,588,950$7,803,837
$5,785,113
$200,000$100,000$800,000$500,000$206,494$176,501
$0$0$0
$1,982,995
$250,000$77,750
$300,000$0$0$0
$627,750
$0$0
$144,000$0$0
$144,000
$2,754,745
$93,800$0$0$0
$93,800
$3,124,167$1,030,975
$0$2,093,192
$0
$2,093,192
Balance Sheet HistoryMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
2013
EquityNumber of Shares Outstanding 1,965,642
Share Capital $1,601,008Retained Earnings $13,258,728
TOTAL EQUITY $14,859,736
These funds are represented by:
Current AssetsCash $18,120,769Raw Materials Inventory $78,321Finished Goods Inventory $0
$18,199,090
Non Current AssetsPlant $4,000,000Less: Accumulated Depreciation $3,475,712
$524,288InvestmentsEquity in Owned Firms $0Loans To Owned Firms $0
TOTAL ASSETS $18,723,378
Current LiabilitiesOverdraft $0Company Tax To Pay $1,663,642
$1,663,642
Non Current Liabilities
Long Term Debt $2,200,000Loans From Owner $0
$2,200,000
TOTAL LIABILITIES $3,863,642TOTAL NET ASSETS $14,859,736
2012 2011
1,965,642 1,991,310
$1,601,008 $1,900,251$10,077,595 $8,326,509
$11,678,603 $10,226,761
$13,103,339 $11,740,857$82,525 $64,876
$899,854 $587,964
$14,085,718 $12,393,696
$4,000,000 $4,000,000$3,344,640 $3,180,800
$655,360 $819,200
$0 $0$0 $0
$14,741,078 $13,212,896
$0 $0$862,475 $1,186,136
$862,475 $1,186,136
$2,200,000 $1,800,000$0 $0
$2,200,000 $1,800,000
$3,062,475 $2,986,136$11,678,603 $10,226,761
2010 2009 2008
1,991,310 2,000,000 2,000,000
$1,900,251 $2,000,000 $2,000,000$5,918,294 $4,551,357 $3,093,192
$7,818,545 $6,551,357 $5,093,192
$8,368,001 $7,127,855 $5,973,755$58,333 $65,095 $72,529
$841,479 $596,607 $277,883
$9,267,813 $7,789,558 $6,324,167
$4,000,000 $4,000,000 $4,000,000$2,976,000 $2,720,000 $2,400,000
$1,024,000 $1,280,000 $1,600,000
$0 $0 $0$0 $0 $0
$10,291,813 $9,069,558 $7,924,167
$0 $0 $0$673,268 $718,201 $1,030,975
$673,268 $718,201 $1,030,975
$1,800,000 $1,800,000 $1,800,000$0 $0 $0
$1,800,000 $1,800,000 $1,800,000
$2,473,268 $2,518,201 $2,830,975$7,818,545 $6,551,357 $5,093,192
Cashflow Statement HistoryMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
2013Cashflows from Operating ActivitiesCash was provided from:Sales $18,745,031Sales Of Obsolete Stock $0Miscellaneous Cash Windfall $0
Cash was disbursed to:Design & Development Projects $0Brand Advertising $350,000Product Advertising $1,125,000Product PR $920,000Distribution $855,462Finished Goods Holding Cost $69,700Labour costs $2,575,000Training Expenses $243,000Workforce Change Cost $188,000Raw Material Purchases $3,911,829Raw Materials Holding Cost $16,053Relationships with Suppliers $40,000Preventative Maintenance $500,000Reduction of Setup Times $20,000Quality Systems $180,000Inspection $1,235,160Rework Materials Cost $86,749Warranty Claims $185,759Investor PR $300,000Legal Fees (when under statutory management) $0Company tax paid $862,475Miscellaneous Expenses $0
OPERATING CASHFLOWS $5,080,845
Cashflows From Investing ActivitiesCash was provided from:Sale Of Plant $0Sale of Companies $0Sale of Shares to Owned Companies $0Dividends from Owned Companies $0Loan From Owned Firms Repaid $0
Interest from Owned Companies $0
Cash was disbursed to:Purchase of Plant $0Purchase of Companies $0Purchase of Shares of Owned Companies $0Loan To Owned Firms $0
INVESTMENT CASHFLOWS $0
Cashflows From Financing ActivitiesCash was provided from:Long Term Debt Raised $0Share Issue $0Emergency Equity Injection $0Interest on Cash in Bank $309,150Loan From Owner $0
Cash was disbursed to:Long Term Debt Repaid $0Loan to Owner Repaid $0Share Repurchase $0Share Issue/Repurchase Cost $0Withdrawal of Emergency Equity $0Interest on Long Term Debt $176,000Interest to Owning Company $0Interest on Overdraft $0Dividends Issued $196,564
FINANCING CASHFLOWS ($63,415)
Net Cash Change $5,017,430
Beginning Cash Balance $13,103,339
ENDING CASH BALANCE $18,120,769
2012 2011
$18,212,260 $14,105,463$0 $0$0 $0
$1,000,000 $0$350,000 $350,000$970,000 $870,000$800,000 $630,000$444,981 $280,196$126,600 $130,050
$4,525,000 $2,275,000$502,200 $195,840$360,000 $32,000
$4,143,916 $3,250,343$14,723 $12,320$37,500 $35,000
$500,000 $500,000$17,500 $15,000
$180,000 $150,000$1,300,392 $851,460
$87,938 $67,443$173,631 $169,786$300,000 $300,000
$0 $0$1,186,136 $673,268
$0 $0
$1,191,742 $3,317,758
$0 $0$0 $0$0 $0$0 $0$0 $0
$0 $0
$0 $0$0 $0$0 $0$0 $0
$0 $0
$400,000 $0$0 $0$0 $0
$245,982 $199,098$0 $0
$0 $0$0 $0
$284,993 $0$14,250 $0
$0 $0$176,000 $144,000
$0 $0$0 $0$0 $0
$170,739 $55,098
$1,362,482 $3,372,856
$11,740,857 $8,368,001
$13,103,339 $11,740,857
2010 2009
$11,681,944 $12,090,008$0 $0$0 $0
$0 $0$300,000 $100,000$630,000 $630,000$500,000 $500,000$261,547 $262,321$126,850 $81,450
$2,675,000 $2,675,000$230,880 $237,120$24,000 $76,000
$2,909,905 $3,247,333$12,320 $13,720$35,000 $35,000
$500,000 $500,000$15,000 $15,000
$150,000 $150,000$765,300 $854,340$59,501 $67,725
$137,971 $145,643$300,000 $300,000
$0 $0$718,201 $1,030,975
$0 $0
$1,330,470 $1,168,381
$0 $0$0 $0$0 $0$0 $0$0 $0
$0 $0
$0 $0$0 $0$0 $0$0 $0
$0 $0
$0 $0$0 $0$0 $0
$153,424 $129,719$0 $0
$0 $0$0 $0
$94,999 $0$4,750 $0
$0 $0$144,000 $144,000
$0 $0$0 $0$0 $0
($90,325) ($14,281)
$1,240,146 $1,154,100
$7,127,855 $5,973,755
$8,368,001 $7,127,855
2008
$13,588,950$0$0
$0$100,000$800,000$500,000$206,494$77,750
$2,300,000$103,200$60,000
$3,698,996$7,233
$30,000$500,000$20,000$150,000$953,460$81,360$176,501$300,000
$0$1,000,000
$0
$2,523,955
$0$0$0$0$0
$0
$0$0$0$0
$0
$0$0$0
$93,800$0
$0$0$0$0$0
$144,000$0$0$0
($50,200)
$2,473,755
$3,500,000
$5,973,755
Year 1Products - Sales, Margin, ProductionMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2009
Product RC_RockHopperProd Devpt Project
RC_RockHopperProj
MARKETING & SALES INFORMATIONRetail Price $1,700Average Wholesale Price $850Product Age 2Advertising Expenditure $800,000PR Expenditure $500,000Product Awareness 10.86%Sales Units 14,523Est. Lost Sales 0
ACCOUNTING INFORMATIONCost of Goods Manufactured $7,551,932
Sales $12,344,550Cost of Goods Sold $7,249,818Gross Margin $5,094,732Gross Margin (%) 41%
PRODUCTION INFORMATIONPrime Cost per unit $300Avg Manufacturing Cost Per Unit $499
Inventory LevelsPlanned Production (Units) 15,000
Opening Inventory (Units) 555Actual Production (Units) 15,130Units For Sale
15,685Less: Sales (Units) -14,523Closing Inventory (Units)
1,162
Closing Inventory (Weeks of demand) 4Delivery Performance Index 1
Capacity Usage
SCU Required for Product (per unit) 1
Actual Production (Units) 15,130SCU Used for Production 15,130
Rework (Units) 243SCU Used for Rework 243
Year 2Products - Sales, Margin, ProductionMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2010
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
MARKETING & SALES INFORMATIONRetail Price $1,800Average Wholesale Price $965Product Age 3Advertising Expenditure $630,000PR Expenditure $500,000Product Awareness 13.45%Sales Units 12,111Est. Lost Sales 0
ACCOUNTING INFORMATIONCost of Goods Manufactured $7,189,668
Sales $11,681,944Cost of Goods Sold $6,944,796Gross Margin $4,737,148Gross Margin (%) 41%
PRODUCTION INFORMATIONPrime Cost per unit $300Avg Manufacturing Cost Per Unit $575
Inventory LevelsPlanned Production (Units) 25,000
Opening Inventory (Units) 1,162Actual Production (Units) 12,500
Units For Sale 13,574Less: Sales (Units) -12,111
Closing Inventory (Units) 1,463
Closing Inventory (Weeks of demand) 6Delivery Performance Index 1
Capacity Usage
SCU Required for Product (per unit) 1
Actual Production (Units) 12,500SCU Used for Production 12,500
Rework (Units) 255SCU Used for Rework 255
Year 3Products - Sales, Margin, ProductionMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
MARKETING & SALES INFORMATIONRetail Price $1,850Average Wholesale Price $991Product Age 4Advertising Expenditure $870,000PR Expenditure $630,000Product Awareness 20.17%Sales Units 14,227Est. Lost Sales 0
ACCOUNTING INFORMATIONCost of Goods Manufactured $7,182,663
Sales $14,105,463Cost of Goods Sold $7,436,178Gross Margin $6,669,285Gross Margin (%) 47%
PRODUCTION INFORMATIONPrime Cost per unit $300Avg Manufacturing Cost Per Unit $517
Inventory LevelsPlanned Production (Units) 24,000
Opening Inventory (Units) 1,463Actual Production (Units) 13,902
Units For Sale 15,365Less: Sales (Units) -14,227
Closing Inventory (Units) 1,138
Closing Inventory (Weeks of demand) 4Delivery Performance Index 1
Capacity Usage
SCU Required for Product (per unit) 1
Actual Production (Units) 13,902SCU Used for Production 13,902
Rework (Units) 289SCU Used for Rework 289
Year 4Products - Sales, Margin, ProductionMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
MARKETING & SALES INFORMATIONRetail Price $1,850Average Wholesale Price $991Product Age 5Advertising Expenditure $970000PR Expenditure $800000Product Awareness 24.32%Sales Units 16,345Est. Lost Sales 0
ACCOUNTING INFORMATIONCost of Goods Manufactured $7,865231
Sales $18,212,260Cost of Goods Sold $11,103,470Gross Margin $7,108,790Gross Margin (%) 40%
PRODUCTION INFORMATIONPrime Cost per unit $300Avg Manufacturing Cost Per Unit $520
Inventory LevelsPlanned Production (Units) 26,000
Opening Inventory (Units) 1,138Actual Production (Units) 13,902
Units For Sale 15,365Less: Sales (Units) -14,227
Closing Inventory (Units) 1,394
Closing Inventory (Weeks of demand) 4Delivery Performance Index 1
Capacity Usage
SCU Required for Product (per unit) 1
Actual Production (Units) 13,902SCU Used for Production 13,902
Rework (Units) 312SCU Used for Rework 312
Year 5Products - Sales, Margin, ProductionMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
MARKETING & SALES INFORMATIONRetail Price $1,875Average Wholesale Price $1,031Product Age 6Advertising Expenditure $1,125,000PR Expenditure $920,000Product Awareness 30.16%Sales Units 18,177Est. Lost Sales 5,641
ACCOUNTING INFORMATIONCost of Goods Manufactured $8,631,068
Sales $18,745,031Cost of Goods Sold $9,530,922Gross Margin $9,214,110Gross Margin (%) 49%
PRODUCTION INFORMATIONPrime Cost per unit $300Avg Manufacturing Cost Per Unit $514
Inventory LevelsPlanned Production (Units) 27,800
Opening Inventory (Units) 1,394Actual Production (Units) 16,783
Units For Sale 18,177Less: Sales (Units) -18,177
Closing Inventory (Units) 0
Closing Inventory (Weeks of demand) 0Delivery Performance Index 0.88
Capacity Usage
SCU Required for Product (per unit) 1
Actual Production (Units) 16,783SCU Used for Production 16,783
Rework (Units) 372SCU Used for Rework 372
Year 1Product Development Project ResultsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2009
Hints and Tips.A Success Rating of less than 100% indicates that the product development was unsuccessful,because (1) the project budget/expenditure was too low,and/or (2) the requested unit prime cost was unrealistically low.
If a Success Rating is less than 90%, we strongly recommend that you do further product developmentbefore launching that product.
Check the 'Data' section of the 'More info' on the Product Development screen for more informationand some suggested product development projects.
Period 2007
Project Name RC_RockHopperProjSuccess Rating 100%
Achieved:Style/Design 50Technical Specs 60Unit Prime Cost $300.00SCU Required per Product 1
Design Goals:Style/Design 50Technical Specs 60Unit Prime Cost $300.00Expenditure $1,000,000
Year 2Product Development Project ResultsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2010
Hints and Tips.A Success Rating of less than 100% indicates that the product development was unsuccessful,because (1) the project budget/expenditure was too low,and/or (2) the requested unit prime cost was unrealistically low.
If a Success Rating is less than 90%, we strongly recommend that you do further product development If a Success Rating is less than 90%, we strongly recommend that you do further product developmentbefore launching that product.
Check the 'Data' section of the 'More info' on the Product Development screen for more information Check the 'Data' section of the 'More info' on the Product Development screen for more informationand some suggested product development projects.
Period 2007
Project Name RC_RockHopperProjSuccess Rating 100%
Achieved:Style/Design 50Technical Specs 60Unit Prime Cost $300.00SCU Required per Product 1
Design Goals:Style/Design 50Technical Specs 60Unit Prime Cost $300.00Expenditure $1,000,000
Year 3Product Development Project ResultsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011
Hints and Tips.A Success Rating of less than 100% indicates that the product development was unsuccessful, A Success Rating of less than 100% indicates that the product development was unsuccessful,
because (1) the project budget/expenditure was too low,and/or (2) the requested unit prime cost was unrealistically low.
If a Success Rating is less than 90%, we strongly recommend that you do further product developmentIf a Success Rating is less than 90%, we strongly recommend that you do further product developmentbefore launching that product.
Check the 'Data' section of the 'More info' on the Product Development screen for more information Check the 'Data' section of the 'More info' on the Product Development screen for more informationand some suggested product development projects.
Period 2007
Project Name RC_RockHopperProjSuccess Rating 100%
Achieved:Style/Design 50Technical Specs 60Unit Prime Cost $300.00SCU Required per Product 1
Design Goals:Style/Design 50Technical Specs 60Unit Prime Cost $300.00Expenditure $1,000,000
Year 4Product Development Project ResultsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012
Hints and Tips.A Success Rating of less than 100% indicates that the product development was unsuccessful, A Success Rating of less than 100% indicates that the product development was unsuccessful,
because (1) the project budget/expenditure was too low,and/or (2) the requested unit prime cost was unrealistically low.
If a Success Rating is less than 90%, we strongly recommend that you do further product development If a Success Rating is less than 90%, we strongly recommend that you do further product developmentbefore launching that product.
Check the 'Data' section of the 'More info' on the Product Development screen for more information Check the 'Data' section of the 'More info' on the Product Development screen for more informationand some suggested product development projects.
Period 2007
Project Name RC_RockHopperProjSuccess Rating 100%
Achieved:Style/Design 50Technical Specs 60Unit Prime Cost $300.00SCU Required per Product 1
Design Goals:Style/Design 50Technical Specs 60Unit Prime Cost $300.00Expenditure $1,000,000
Year 5Product Development Project Results
MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012 MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
Hints and Tips.A Success Rating of less than 100% indicates that the product development was unsuccessful, A Success Rating of less than 100% indicates that the product development was unsuccessful,
because (1) the project budget/expenditure was too low,and/or (2) the requested unit prime cost was unrealistically low. and/or (2) the requested unit prime cost was unrealistically low.
If a Success Rating is less than 90%, we strongly recommend that you do further product development If a Success Rating is less than 90%, we strongly recommend that you do further product developmentbefore launching that product.
Check the 'Data' section of the 'More info' on the Product Development screen for more information Check the 'Data' section of the 'More info' on the Product Development screen for more informationand some suggested product development projects.
2012 Period
Lisa Project Name RC_RockHopperProj100% Success Rating
Achieved:50 Style/Design10 Technical Specs
$62.42 Unit Prime Cost0.21 SCU Required per Product
Design Goals:50 Style/Design10 Technical Specs
$100.00 Unit Prime Cost$1,000,000 Expenditure
Product Development Project ResultsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
A Success Rating of less than 100% indicates that the product development was unsuccessful,because (1) the project budget/expenditure was too low,and/or (2) the requested unit prime cost was unrealistically low.
If a Success Rating is less than 90%, we strongly recommend that you do further product development
Check the 'Data' section of the 'More info' on the Product Development screen for more informationand some suggested product development projects.
2007 2012
RC_RockHopperProj Lisa100% 100%
50 5060 10
$300.00 $62.421 0.21
50 5060 10
$300.00 $100.00$1,000,000 $1,000,000
Year 1DecisionsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2009
------------------------------------------------------------PRODUCT DECISIONS------------------------------------------------------------
Brand Advertising $100,000
Product RC_RockHopper
State NormalDesign Project Name RC_RockHopperProjRetail Price $1,700Advertising Expenditure $800,000PR Expenditure $500,000PlannedProduction (Units) 15,000Finished Goods Inventory (Weeks) 4
------------------------------------------------------------PRODUCT MEDIA PROMOTION DECISIONS------------------------------------------------------------
Product RC_RockHopper RC_RockHopperMedia TV InternetProduct Advertising $320,000 $80,000Product PR $100,000 $50,000
------------------------------------------------------------DISTRIBUTION DECISIONS------------------------------------------------------------
Bike Shops Department StoresExtra Support $100,000 $50,000Retail Margin 50% 50%
------------------------------------------------------------OPERATIONS DECISIONS------------------------------------------------------------
ResponsivenessWorkforceSizeIncrease 0Decrease 0PlantSCU Purchased 0 SCUSCU Sold 0 SCU
ProcessBatch Size 200Setup Time Reduction Expenditure $20,000Supplier Relations Expenditure $30,000Raw Material Stock (weeks) 2
QualityAverageSalary $25,000Training Hours 40Maintenance Expenditure $500,000Quality Systems $150,000Proportion Inspected 15%
------------------------------------------------------------DESIGN & DEVELOPMENT DECISIONS------------------------------------------------------------
------------------------------------------------------------FINANCE DECISIONS------------------------------------------------------------
EquityEquity Raised $132,107Equity Repurchased $0Dividend Per Share $0.00DebtLT Debt Raised $0LT Debt Repaid $0Debt to Owner Raised $0Debt to Owner Repaid $0Interest Rate on Debt to Owner 0%Investor PRInvestor PR $300,000
------------------------------------------------------------SHARE INVESTMENT DECISIONS
------------------------------------------------------------Takeovers & Sales
Capital Transfers
------------------------------------------------------------------------------------------------------------------------
Year 2DecisionsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2010
------------------------------------------------------------PRODUCT DECISIONS------------------------------------------------------------
Brand Advertising $300,000
Product RC_RockHopper
State NormalDesign Project Name RC_RockHopperProjRetail Price $1,800Advertising Expenditure $630,000PR Expenditure $500,000PlannedProduction (Units) 25,000Finished Goods Inventory (Weeks) 4
------------------------------------------------------------PRODUCT MEDIA PROMOTION DECISIONS------------------------------------------------------------
Product RC_RockHopperMedia TVProduct Advertising $150,000Product PR $100,000
------------------------------------------------------------DISTRIBUTION DECISIONS------------------------------------------------------------
Bike ShopsExtra Support $150,000Retail Margin 45%
------------------------------------------------------------OPERATIONS DECISIONS------------------------------------------------------------
ResponsivenessWorkforceSizeIncrease 0Decrease 0PlantSCU Purchased 0 SCUSCU Sold 0 SCU
ProcessBatch Size 225Setup Time Reduction Expenditure $15,000Supplier Relations Expenditure $35,000Raw Material Stock (weeks) 1
QualityAverageSalary $25,000Training Hours 80Maintenance Expenditure $500,000Quality Systems $150,000Proportion Inspected 15%
------------------------------------------------------------DESIGN & DEVELOPMENT DECISIONS------------------------------------------------------------
------------------------------------------------------------FINANCE DECISIONS------------------------------------------------------------
EquityEquity Raised $0Equity Repurchased $100,000Dividend Per Share $0.00DebtLT Debt Raised $0LT Debt Repaid $0Debt to Owner Raised $0Debt to Owner Repaid $0Interest Rate on Debt to Owner 0%Investor PRInvestor PR $300,000
------------------------------------------------------------SHARE INVESTMENT DECISIONS
------------------------------------------------------------Takeovers & Sales
Capital Transfers
------------------------------------------------------------------------------------------------------------------------
Year 3DecisionsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011
------------------------------------------------------------PRODUCT DECISIONS------------------------------------------------------------
Brand Advertising $350,000
Product RC_RockHopper
State NormalDesign Project Name RC_RockHopperProjRetail Price $1,850Advertising Expenditure $870,000PR Expenditure $630,000PlannedProduction (Units) 24,000Finished Goods Inventory (Weeks) 4
------------------------------------------------------------PRODUCT MEDIA PROMOTION DECISIONS------------------------------------------------------------
RC_RockHopper Product RC_RockHopperInternet Media TV$80,000 Product Advertising $250,000$50,000 Product PR $200,000
------------------------------------------------------------DISTRIBUTION DECISIONS------------------------------------------------------------
Department Stores Bike Shops$60,000 Extra Support $175,000
50% Retail Margin 45%
------------------------------------------------------------OPERATIONS DECISIONS------------------------------------------------------------
ResponsivenessWorkforceSizeIncrease 0Decrease 15PlantSCU Purchased 0 SCUSCU Sold 0 SCU
ProcessBatch Size 225Setup Time Reduction Expenditure $15,000Supplier Relations Expenditure $35,000Raw Material Stock (weeks) 1
QualityAverageSalary $25,000Training Hours 80Maintenance Expenditure $500,000Quality Systems $150,000Proportion Inspected 15%
------------------------------------------------------------DESIGN & DEVELOPMENT DECISIONS------------------------------------------------------------
------------------------------------------------------------FINANCE DECISIONS------------------------------------------------------------
EquityEquity Raised $0Equity Repurchased $0Dividend Per Share $0.00DebtLT Debt Raised $0LT Debt Repaid $0Debt to Owner Raised $0Debt to Owner Repaid $0Interest Rate on Debt to Owner 0%Investor PRInvestor PR $300,000
------------------------------------------------------------SHARE INVESTMENT DECISIONS
------------------------------------------------------------Takeovers & Sales
Capital Transfers
------------------------------------------------------------------------------------------------------------------------
Year 4Decisions
MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011 MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012
------------------------------------------------------------PRODUCT DECISIONS------------------------------------------------------------
Brand Advertising $350,000
Product RC_RockHopper
State NormalDesign Project Name RC_RockHopperProjRetail Price $1,875Advertising Expenditure $970000PR Expenditure $800,000PlannedProduction (Units) 26,000Finished Goods Inventory (Weeks) 4
------------------------------------------------------------PRODUCT MEDIA PROMOTION DECISIONS------------------------------------------------------------
RC_RockHopper Product RC_RockHopperInternet Media TV$120,000 Product Advertising $375,000$80,000 Product PR $400,000
------------------------------------------------------------DISTRIBUTION DECISIONS------------------------------------------------------------
Department Stores Bike Shops$60,000 Extra Support $400,000
50% Retail Margin 45%
------------------------------------------------------------OPERATIONS DECISIONS------------------------------------------------------------
ResponsivenessWorkforceSizeIncrease 0Decrease 80PlantSCU Purchased 0 SCUSCU Sold 0 SCU
ProcessBatch Size 240Setup Time Reduction Expenditure $20,000Supplier Relations Expenditure $40,000Raw Material Stock (weeks) 1
QualityAverageSalary $25,000Training Hours 90Maintenance Expenditure $500,000Quality Systems $180,000Proportion Inspected 18%
------------------------------------------------------------DESIGN & DEVELOPMENT DECISIONS------------------------------------------------------------
------------------------------------------------------------FINANCE DECISIONS------------------------------------------------------------
EquityEquity Raised $0Equity Repurchased $0Dividend Per Share $0.10DebtLT Debt Raised $0LT Debt Repaid $0Debt to Owner Raised $0Debt to Owner Repaid $0Interest Rate on Debt to Owner 0%Investor PRInvestor PR $300,000
------------------------------------------------------------SHARE INVESTMENT DECISIONS
------------------------------------------------------------Takeovers & Sales
Capital Transfers
------------------------------------------------------------------------------------------------------------------------
Year 5DecisionsMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
------------------------------------------------------------PRODUCT DECISIONS------------------------------------------------------------
Brand Advertising
ProductState
Design Project NameRetail PriceAdvertising ExpenditurePR ExpenditurePlannedProduction (Units)Finished Goods Inventory (Weeks)
------------------------------------------------------------PRODUCT MEDIA PROMOTION DECISIONS------------------------------------------------------------
RC_RockHopper ProductInternet Media$150,000 Product Advertising$120,000 Product PR
------------------------------------------------------------DISTRIBUTION DECISIONS------------------------------------------------------------
Department Stores$400,000 Extra Support
45% Retail Margin
------------------------------------------------------------OPERATIONS DECISIONS------------------------------------------------------------
ResponsivenessWorkforceSizeIncreaseDecreasePlantSCU PurchasedSCU Sold
ProcessBatch SizeSetup Time Reduction ExpenditureSupplier Relations ExpenditureRaw Material Stock (weeks)
QualityAverageSalaryTraining HoursMaintenance ExpenditureQuality SystemsProportion Inspected
------------------------------------------------------------DESIGN & DEVELOPMENT DECISIONS------------------------------------------------------------
------------------------------------------------------------FINANCE DECISIONS------------------------------------------------------------
EquityEquity RaisedEquity RepurchasedDividend Per ShareDebtLT Debt RaisedLT Debt RepaidDebt to Owner RaisedDebt to Owner RepaidInterest Rate on Debt to OwnerInvestor PRInvestor PR
------------------------------------------------------------SHARE INVESTMENT DECISIONS
------------------------------------------------------------Takeovers & Sales
Capital Transfers
------------------------------------------------------------------------------------------------------------------------
MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
------------------------------------------------------------
------------------------------------------------------------
$350,000
RC_RockHopper
NormalRC_RockHopperProj
$1,875$1,125,000$920,00027,800
4
------------------------------------------------------------
------------------------------------------------------------
RC_RockHopper RC_RockHopperTV Internet
$375,000 $150,000$400,000 $120,000
------------------------------------------------------------
------------------------------------------------------------
Bike Shops Department Stores$400,000 $400,000
45% 45%
------------------------------------------------------------
------------------------------------------------------------
080
0 SCU0 SCU
240$20,000$40,000
1
$25,00090
$500,000$180,000
18%
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------
$0$0
$0.10
$0$0$0$00%
$300,000
------------------------------------------------------------
------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------
Year 1Factory Overhead Allocation RatesMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2009
This report lists the factory overhead costs and calculates the overhead application ratesNote that the direct costs are based on the product standards (not actuals).
Material OverheadsRaw Materials Warehousing Cost $21,350Relationships with Suppliers $30,000Rework Materials Cost $77,708
Total Material Overheads $129,058Total Direct Material Costs $3,530,333Material Overhead Application Rate ($ per DMat$) $0.04
Labor OverheadsSetup Labor $172,777Training Labor $35,510Rework Labor $22,438Other Labor $424,927Inspection $927,780Training Expenses $101,760Workforce Change Cost $48,000Production Scheduling & Administration $150,000
Total Labor Overheads $1,883,192Total Direct Labor Hours 80,693Labor Overhead Application Rate ($ per DLHr) $23.34
Machine OverheadsPreventative Maintenance $500,000Depreciation Expense $320,000Reduction of Setup Times $20,000Quality Systems $150,000Gain On Sale Of Plant $0Loss On Sale Plant $0
Total Machine Overheads $990,000Total Direct Machine Hours 60,520Machine Overhead Application Rate ($ per DMachHr) $16.36
Year 2Factory Overhead Allocation RatesMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2010
This report lists the factory overhead costs and calculates the overhead application rates.Note that the direct costs are based on the product standards (not actuals).
Material OverheadsRaw Materials Warehousing Cost $12,320Relationships with Suppliers $35,000Rework Materials Cost $59,501
Total Material Overheads $106,821Total Direct Material Costs $2,916,667Material Overhead Application Rate ($ per DMat$) $0.04
Labor OverheadsSetup Labor $133,207Training Labor $84,048Rework Labor $18,027Other Labor $956,049Inspection $765,300Training Expenses $230,880Workforce Change Cost $24,000Production Scheduling & Administration $150,000
Total Labor Overheads $2,361,511Total Direct Labor Hours 66,667Labor Overhead Application Rate ($ per DLHr) $35.42
Machine OverheadsPreventative Maintenance $500,000Depreciation Expense $256,000Reduction of Setup Times $15,000Quality Systems $150,000Gain On Sale Of Plant $0Loss On Sale Plant $0
Total Machine Overheads $921,000Total Direct Machine Hours 50,000Machine Overhead Application Rate ($ per DMachHr) $18.42
Year 3Factory Overhead Allocation RatesMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011
This report lists the factory overhead costs and calculates the overhead application rates. This report lists the factory overhead costs and calculates the overhead application rates.Note that the direct costs are based on the product standards (not actuals).
Material OverheadsRaw Materials Warehousing Cost $12,320Relationships with Suppliers $35,000Rework Materials Cost $67,443
Total Material Overheads $114,763Total Direct Material Costs $3,243,800Material Overhead Application Rate ($ per DMat$) $0.04
Labor OverheadsSetup Labor $135,193Training Labor $70,380Rework Labor $18,627Other Labor $604,887Inspection $851,460Training Expenses $195,840Workforce Change Cost $32,000Production Scheduling & Administration $150,000
Total Labor Overheads $2,058,387Total Direct Labor Hours 74,144Labor Overhead Application Rate ($ per DLHr) $27.76
Machine OverheadsPreventative Maintenance $500,000Depreciation Expense $204,800Reduction of Setup Times $15,000Quality Systems $150,000Gain On Sale Of Plant $0Loss On Sale Plant $0
Total Machine Overheads $869,800Total Direct Machine Hours 55,608Machine Overhead Application Rate ($ per DMachHr) $15.64
Year 4Factory Overhead Allocation RatesMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012
This report lists the factory overhead costs and calculates the overhead application rates. This report lists the factory overhead costs and calculates the overhead application rates.Note that the direct costs are based on the product standards (not actuals).
Material OverheadsRaw Materials Warehousing Cost $16,053Relationships with Suppliers $40,000Rework Materials Cost $76546
Total Material OverheadsTotal Direct Material CostsMaterial Overhead Application Rate ($ per DMat$)
Labor OverheadsSetup Labor $145,366Training Labor $76425Rework Labor $1865468Other Labor $565,431Inspection $1,135,160Training Expenses $233,200Workforce Change Cost $118,000Production Scheduling & Administration $150,000
Total Labor OverheadsTotal Direct Labor HoursLabor Overhead Application Rate ($ per DLHr)
Machine OverheadsPreventative Maintenance $500,000Depreciation Expense $176,672Reduction of Setup Times $20,000Quality Systems $180,000Gain On Sale Of Plant $0Loss On Sale Plant $0
Total Machine OverheadsTotal Direct Machine HoursMachine Overhead Application Rate ($ per DMachHr)
Year 5Factory Overhead Allocation Rates
MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012 MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
This report lists the factory overhead costs and calculates the overhead application rates. This report lists the factory overhead costs and calculates the overhead application rates.Note that the direct costs are based on the product standards (not actuals). Note that the direct costs are based on the product standards (not actuals).
Material OverheadsRaw Materials Warehousing Cost $16,053Relationships with Suppliers $40,000Rework Materials Cost $86,749
$129653 Total Material Overheads$3,754,333 Total Direct Material Costs
$0.04 Material Overhead Application Rate ($ per DMat$)
Labor OverheadsSetup Labor $156,965Training Labor $86,625Rework Labor $24,568Other Labor $547,831Inspection $1,235,160Training Expenses $243,000Workforce Change Cost $188,000Production Scheduling & Administration $150,000
$2,463,649 Total Labor Overheads81,234 Total Direct Labor Hours$28.81 Labor Overhead Application Rate ($ per DLHr)
Machine OverheadsPreventative Maintenance $500,000Depreciation Expense $131,072Reduction of Setup Times $20,000Quality Systems $180,000Gain On Sale Of Plant $0Loss On Sale Plant $0
Total Machine Overheads$876,67262,300 Total Direct Machine Hours$1368 Machine Overhead Application Rate ($ per DMachHr)
MikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
This report lists the factory overhead costs and calculates the overhead application rates.Note that the direct costs are based on the product standards (not actuals).
$142,803$3,916,033
$0.04
$2,632,14989,509$29.41
$831,07267,132$12.38
Year 1COGM and Gross Margin ReportMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2009
Gross Margin Report
Product RC_RockHopper
Sales Units 14,523Retail Price $1,700Average Wholesale Price $850
Sales Revenue $12,344,550
Opening Finished Goods Inventory $277,883Plus: Cost of Goods Manufactured $7,551,932
$7,829,814Less: Closing Finished Goods Inventory $579,996
Cost of Goods Sold $7,249,818
GROSS MARGIN $5,094,732
Cost of Goods Manufactured Report
Note: See the Overhead Rates Report for Overhead Allocation Rate calculations.
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
Production (units) 15,130
Materials CostsDirect Raw Materials $3,530,333
Materials Overhead Applied $129,058($0.04 per DMat$)
Labor Costs
Standard Direct Labor $1,008,667Direct Labor Efficiency Variance $10,681(due to effectiveness & wage levels)
Direct Labor Cost $1,019,348
Standard Direct Labor Hours 80,693Labor Overhead Applied $1,883,192($23.34 per DLHr)
Machine CostsStandard Machine Hours 60,520Machine Overhead Applied $990,000($16.36 per DMachHr)
TOTAL COST OF GOODS MANUFACTURED $7,551,932
Avg Manufacturing Cost Per Unit $499.14
Year 2COGM and Gross Margin ReportMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2010
Gross Margin Report
Product RC_RockHopper
Sales Units 12,111Retail Price $1,800Average Wholesale Price $965
Sales Revenue $11,681,944
Opening Finished Goods Inventory $596,607Plus: Cost of Goods Manufactured $7,189,668
$7,786,275Less: Closing Finished Goods Inventory $841,479
Cost of Goods Sold $6,944,796
GROSS MARGIN $4,737,148
Cost of Goods Manufactured Report
Note: See the Overhead Rates Report for Overhead Allocation Rate calculation
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
Production (units) 12,500
Materials CostsDirect Raw Materials $2,916,667
Materials Overhead Applied $106,821($0.04 per DMat$)
Labor Costs
Standard Direct Labor $833,333Direct Labor Efficiency Variance $50,335(due to effectiveness & wage levels)
Direct Labor Cost $883,669
Standard Direct Labor Hours 66,667Labor Overhead Applied $2,361,511($35.42 per DLHr)
Machine CostsStandard Machine Hours 50,000Machine Overhead Applied $921,000($18.42 per DMachHr)
TOTAL COST OF GOODS MANUFACTURED $7,189,668
Avg Manufacturing Cost Per Unit $575.17
Year 3COGM and Gross Margin ReportMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011
Gross Margin Report
Product RC_RockHopper
Sales Units 14,227Retail Price $1,850Average Wholesale Price $991
Sales Revenue $14,105,463
Opening Finished Goods Inventory $841,479Plus: Cost of Goods Manufactured $7,182,663
$8,024,141Less: Closing Finished Goods Inventory $587,964
Cost of Goods Sold $7,436,178
GROSS MARGIN $6,669,285
Cost of Goods Manufactured Report
Note: See the Overhead Rates Report for Overhead Allocation Rate calculations.
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
Production (units) 13,902
Materials CostsDirect Raw Materials $3,243,800
Materials Overhead Applied $114,763($0.04 per DMat$)
Labor Costs
Standard Direct Labor $926,800Direct Labor Efficiency Variance ($30,887)(due to effectiveness & wage levels)
Direct Labor Cost $895,913
Standard Direct Labor Hours 74,144Labor Overhead Applied $2,058,387($27.76 per DLHr)
Machine CostsStandard Machine Hours 55,608Machine Overhead Applied $869,800($15.64 per DMachHr)
TOTAL COST OF GOODS MANUFACTURED $7,182,663
Avg Manufacturing Cost Per Unit $516.66
Year 4COGM and Gross Margin ReportMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012
Gross Margin Report
Product RC_RockHopper
Sales Units 16,345Retail Price $1,875Average Wholesale Price $991
Sales Revenue $18,745,031
Opening Finished Goods Inventory $587,964Plus: Cost of Goods Manufactured $7,549,068
$9,530,922Less: Closing Finished Goods Inventory $654,764
Cost of Goods Sold $11,103,470
GROSS MARGIN $7,108,790
Cost of Goods Manufactured Report
Note: See the Overhead Rates Report for Overhead Allocation Rate calculations.
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
Production (units) 16,783
Materials CostsDirect Raw Materials $3,916,033
Materials Overhead Applied $142,803($0.04 per DMat$)
Labor Costs
Standard Direct Labor $1,118,867Direct Labor Efficiency Variance ($9,855)(due to effectiveness & wage levels)
Direct Labor Cost $1,109,011
Standard Direct Labor Hours 89,509Labor Overhead Applied $2,632,149($29.41 per DLHr)
Machine CostsStandard Machine Hours 67,132Machine Overhead Applied $831,072($12.38 per DMachHr)
TOTAL COST OF GOODS MANUFACTURED $8,631,068
Avg Manufacturing Cost Per Unit $514.27
Year 5COGM and Gross Margin ReportMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
Gross Margin Report
Product RC_RockHopper
Sales Units 18,177Retail Price $1,875Average Wholesale Price $1,031
Sales Revenue $18,745,031
Opening Finished Goods Inventory $899,854Plus: Cost of Goods Manufactured $8,631,068
$9,530,922Less: Closing Finished Goods Inventory $0
Cost of Goods Sold $9,530,922
GROSS MARGIN $9,214,110
Cost of Goods Manufactured Report
Note: See the Overhead Rates Report for Overhead Allocation Rate calculations.
Product RC_RockHopper
Prod Devpt Project RC_RockHopperProj
Production (units) 16,783
Materials CostsDirect Raw Materials $3,916,033
Materials Overhead Applied $142,803($0.04 per DMat$)
Labor Costs
Standard Direct Labor $1,118,867Direct Labor Efficiency Variance ($9,855)(due to effectiveness & wage levels)
Direct Labor Cost $1,109,011
Standard Direct Labor Hours 89,509Labor Overhead Applied $2,632,149($29.41 per DLHr)
Machine CostsStandard Machine Hours 67,132Machine Overhead Applied $831,072($12.38 per DMachHr)
TOTAL COST OF GOODS MANUFACTURED $8,631,068
Avg Manufacturing Cost Per Unit $514.27
Year 1Economic Value StatementMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2009
EarningsNet Operating Profit After Tax $2,093,192(excluding interest costs)
Investment Earnings $0EARNINGS $1,633,757
Cost of CapitalInterest Charge $7,422Equity Charge $525,233CAPITAL CHARGE $532,654
ECONOMIC VALUE CREATED $1,101,102
Year 2Economic Value StatementMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2010
EarningsNet Operating Profit After Ta $1,360,623(excluding interest costs)
Investment Earnings $0EARNINGS $1,360,623
Cost of CapitalInterest Charge ($6,314)Equity Charge $647,618CAPITAL CHARGE $641,304
ECONOMIC VALUE CREATED $719,319
Year 3Economic Value StatementMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2011
EarningsNet Operating Profit After T $2,371,300(excluding interest costs)
Investment Earnings $0EARNINGS $2,371,300
Cost of CapitalInterest Charge ($36,915)Equity Charge $760,037CAPITAL CHARGE $723,121
ECONOMIC VALUE CREATED $1,648,179
Year 4Economic Value StatementMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2012
EarningsNet Operating Profit After Tax $1,751,085(excluding interest costs)
Investment Earnings $0EARNINGS $1,751,085
Cost of CapitalInterest Charge ($76,410)Equity Charge $754,057CAPITAL CHARGE 677,647
ECONOMIC VALUE CREATED $1,073,438
Year 5Economic Value StatementMikesBikes-Advanced - Single-Player - Real Cool Cycles - Period 2013
EarningsNet Operating Profit After Tax $3,288,487(excluding interest costs)
Investment Earnings $0EARNINGS $3,288,487
Cost of CapitalInterest Charge ($89,210)Equity Charge $1,110,057CAPITAL CHARGE $1,020,847
ECONOMIC VALUE CREATED $2,267,640
