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Re: stoutman post# 164463

Friday, 09/07/2012 9:03:59 AM

Friday, September 07, 2012 9:03:59 AM

Post# of 289427
I have Walmart's cost per can pegged in the low .90's. The figure I gave for BBDA .30-.40 profit per can took into account all costs involved (salary, administrative expenses, travel, etc) as listed in their 2nd quarter filing. They made a net profit last quarter of 37% of total sales. If Walmart paid the same as they charge everyone else their profit percentage would go up because they can make more Koma with a marginal increase in payroll expense and the cost of materials. Administrative costs are going to be flat. However, Walmart is going to get a discount from the normal price so profit margin for BBDA will either stay the same or go down a little next quarter. Of course, total profit will be up based on increase in sales.