Profit and Loss by Segment - Pre-ABC (cost allocated based on gross sales dollars)

Profit and Loss by Segment - ABC (customer unit-level costs)

Impulse Segment Yogurt Shops Total
Sales in Cases 1,200,000 300,000 1,500,000

Sales Revenue $23,880,000 $5,970,000 $29,850,000

Less: Price Promotions -$3,600,000 -$900,000 -$4,500,000
Net Sales $20,280,000 $5,070,000 $25,350,000
Less: COGS -$14,025,000 -$3,225,000 -$17,250,000
Gross Margin $6,255,000 $1,845,000 $8,100,000
Less: Merchandising -$1,680,000 -$45,000 -$1,725,000
Less: SG&A -$3,861,000 -$39,000 -$3,900,000
Net Income $714,000 $1,761,000 $2,475,000
Net Profit Margin 2.99% 29.50%
ABC Analysis of COGS
Impulse Segment
Cases in full Pallets 60,000
Individual Cases 1,140,000
Total Cases 1,200,000

Cost of ingredients, packaging and storage per case (cost/total cases) $9.50
Cost of pick/pack per case (cases in full pallets) (cost/number of case $1.00
Cost of pick/pack per case (individual cases) $2.25
COGS (Impulse Segment) $14,025,000
COGS (Yogurt Shop) $3,225,000

ABC Analysis of Merchandising

Merchandising cost (Impulse Segment) $1,680,000
Merchandising cost (Yogurt Shop) $45,000

ABC Analysis of Selling, General and Administrative

Total cost allocated $3,900,000
Selling, General and Admin Cost (Impulse Segment) $3,861,000
Selling, General and Admin Cost (Yogurt Shop) $39,000
Yogurt Shops Total
240,000 300,000
60,000 1,200,000
300,000 1,500,000

= $14,250,000 / 1,500,000
= $75 / 75
given

=$500*3360 kits
=$500*90 kits

99%
1%