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Re: stoutman post# 162743

Sunday, 09/02/2012 10:54:41 AM

Sunday, September 02, 2012 10:54:41 AM

Post# of 289427
You're still forgetting to take into account what price Walmart is buying cans at. A retailer like Lowe's makes an average of about 35-40% margin on store sales, I'm betting Walmart is the same or a little higher on drinks. Let's say they get 40% margin.

$1.88 x .60 = $1.128 cost per can.

This is gross profit per can for BBDA.

Now if your 15% is true then:

$1.128 x .85 = 95.88 cents net profit per can.

.9588 x 4.5 million = $4,314,600 net profit.

In reality you still have to take administrative expenses, travel, and payroll out to get the final number of profit for the company.