Page 12 - CIMA OCS Workbook May 2019 - Day 1 Tasks

CIMA MAY 2019 – OPERATIONAL CASE STUDY

REFERENCE MATERIALS: CONSULTANT’S REPORT (EXTRACTS)

Yamazaki and Co Consultants

Report on Elderberry supplement proposal

Section 4: Financial Analysis (extract)

Y e a r 1 Year 2
2019 2020

Sales revenue (E$000s)

Worst case scenario revenue 20.0 20.0

Best case scenario revenue 50.0 55.0

Expected sales revenue 35.0 40.0

Break even revenue 30.0 30.0
Margin of safety 14% 25%

Standard deviation 40% 38%

Profitability (E$000s)

Operating profit based on expected sales volume 17.5 20.0

Profit before tax based on expected sales volume 11.7 13.7

Sensitivity to expected retail prices 10% 12%

Other measures

Payback 2.5 years ‐

30 KAPLAN PUBLISHING