2.1 Company-Level Net Marketing Contribution (Figure 2-15)

Analysis Scale
Millions
Santa Fe Sportswear
Performance		 Khaki Pants Wind Breakers Classic Polo Casual Shorts Knitted Sweaters Company Total
Market Demand
12.0
10.0
16.7
20.0
6.7
65.4
Market Share
12.5
%
5.0
%
3.0
%
2.0
%
3.0
%
5.3
Unit Volume Sold
1.5
0.5
0.5
0.4
0.2
3.1
Average Selling Price (*)
$80.00
$
$100.00
$
$60.00
$
$50.00
$
$150.00
$
80.65
Channel Discount
50
%
50
%
50
%
50
%
50
%
50
Net Selling Price (*)
40.00
50.00
30.00
25.00
75.00
40.32
Sales Revenues
60.0
25.0
15.0
10.0
15.0
125.0
Cost per Unit (*)
$24.00
$
$30.00
$
$15.00
$
$18.75
$
$10.50
$
24.68
Percent Margin
40.0
%
40.0
%
50.0
%
25.0
%
30.0
%
38.8
Gross Profit
24.0
10.0
7.5
2.5
4.5
48.5
Marketing & Sales Expenses
$8.5
$
$4.0
$
$2.0
$
$1.5
$
$2.5
$
18.5
Net Marketing Contribution
15.5
6.0
5.5
1.0
2.0
30
G & A and Other Expenses
$10.0
$
$4.0
$
$2.0
$
$2.0
$
$2.0
$
20.0
Net Profit (before taxes)
5.5
2.0
3.5
-1.0
0.0
10
Marketing Profitability Metrics
Marketing ROS
25.8
24.0
36.7
10.0
13.3
24.0
Marketing ROI
182
150
275
67
80
162

(*) Not Scaled

Starting Data Scale
Millions
Santa Fe Sportswear
Performance (millions)		 Khaki Pants Wind Breakers Classic Polo Casual Shorts Knitted Sweaters Company Total
Market Demand
12.0
10.0
16.7
20.0
6.7
65.3
Market Share
12.5
%
5.0
%
3.0
%
2.0
%
3.0
%
5.3
Unit Volume Sold
1.5
0.5
0.5
0.4
0.2
3.1
Average Selling Price (*)
$80.00
$
$100.00
$
$60.00
$
$50.00
$
$150.00
$
80.65
Channel Discount
50
%
50
%
50
%
50
%
50
%
50
Net Selling Price (*)
40.00
50.00
30.00
25.00
75.00
40.32
Sales Revenues
60.0
25.0
15.0
10.0
15.0
125.0
Cost per Unit (*)
$24.00
$
$30.00
$
$15.00
$
$18.75
$
$10.50
$
24.68
Percent Margin
40.0
%
40.0
%
50.0
%
25.0
%
30.0
%
38.8
Gross Profit
24.0
10.0
7.5
2.5
4.5
48.5
Marketing & Sales Expenses
$8.5
$
$4.0
$
$2.0
$
$1.5
$
$2.5
$
18.5
Net Marketing Contribution
15.5
6.0
5.5
1.0
2.0
30
G & A and Other Expenses
$10.0
$
$4.0
$
$2.0
$
$2.0
$
$2.0
$
20.0
Net Profit (before taxes)
5.5
2.0
3.5
-1.0
0.0
10
Marketing Profitability Metrics
Marketing ROS
25.8
24.0
36.7
10.0
13.3
24.0
Marketing ROI
182
150
275
67
80
162

(*) Not Scaled

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