Page 100 - New Employee Onboarding

Confidential and Privileged
For The Audit and Finance Committee's Review
Work-paper #3-4:
Apple Market Basket vs. Modified Producer Price Index:
2015 Performance by Category

Category: Pork
Apple Market Basket Modified Producer Price Index (MPPI)
Average Actual Store Cost (Jan - Dec) Budgeted Spend Average PPI Sub-Indices (Jan - Dec) Indexed Cost Indexed Spend
Product 2014 2015 fav/(unfav) Volume 2015 2014 2015 fav/(unfav) Referenced PPI Sub-Indices PPI Code 2014 2015 fav/(unfav) 2015 2015 fav/(unfav)
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16]
Bacon, Raw, Applewood Sliced $2.63 $2.15 18.2% 6,813,540 $17,942,566 $14,679,809 18.2% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.40 $16,364,683 8.8%
Pork, Baby Back Ribs, Narrow Cut, Raw $3.07 $3.04 1.1% 7,000,000 $21,479,930 $21,250,831 1.1% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.80 $19,590,968 8.8%
Pork, Bacon Bits, Fully-Cooked, 30% $5.56 $3.86 30.5% 1,589,520 $8,830,306 $6,137,168 30.5% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $5.07 $8,053,762 8.8%
Pork, Riblets, Pre-Cooked (Catch Wt) $2.23 $2.28 -2.1% 7,177,730 $16,000,011 $16,341,550 -2.1% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.03 $14,592,958 8.8%
Overall Performance $64,252,814 $58,409,358 9.1% Overall Performance $58,602,370 8.8%

Category: Bakery

Apple Market Basket Modified Producer Price Index (MPPI)
Average Actual Store Cost (Jan - Dec) Budgeted Spend Average PPI Sub-Indices (Jan - Dec) Indexed Cost Indexed Spend
Product 2014 2015 fav/(unfav) Volume 2015 2014 2015 fav/(unfav) Referenced PPI Sub-Indices PPI Code 2014 2015 fav/(unfav) 2015 2015 fav/(unfav)
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16]
Blondie, Walnut, NTF $2.60 $2.63 -1.4% 509,385 $1,323,346 $1,341,281 -1.4% Frozen bakery products WPU02850109 263 266 -1.4% $2.63 $1,341,815 -1.4%
Cake, Triple Chocolate Meltdown $3.14 $3.45 -10.0% 1,874,295 $5,879,101 $6,464,214 -10.0% Frozen bakery products WPU02850109 263 266 -1.4% $3.18 $5,961,151 -1.4%
Cheesecake, Scoopable $2.23 $2.32 -3.9% 730,450 $1,632,488 $1,696,141 -3.9% Other frozen desserts (yogurt, sherbet, water ices) WPU023402015 103 105 -1.7% $2.27 $1,659,580 -1.7%
Mousse, Chocolate, Scoopable $2.25 $2.26 -0.2% 654,420 $1,475,153 $1,478,313 -0.2% Other frozen desserts (yogurt, sherbet, water ices) WPU023402015 103 105 -1.7% $2.29 $1,499,634 -1.7%
Breadstick, Ciabatta $1.81 $1.90 -4.8% 2,636,482 $4,775,225 $5,002,630 -4.8% Other variety breads (rye, unleavened, raisin, potato) WPU0211020114 105 106 -1.2% $1.83 $4,833,907 -1.2%
Bun, Brioche $1.16 $1.36 -17.0% 4,247,994 $4,922,576 $5,759,633 -17.0% All other rolls, bread-type (incl. muffins, bagels,) WPU0211050502 107 111 -4.1% $1.21 $5,123,741 -4.1%
Bun, Slider $1.41 $1.45 -2.4% 2,238,749 $3,166,732 $3,241,746 -2.4% Rolls, hamburger and wiener WPU0211050501 108 110 -2.1% $1.44 $3,232,557 -2.1%
Pasta, Penne (Mostaccioli Rigati) $0.62 $0.68 -9.0% 6,242,781 $3,897,361 $4,249,760 -9.0% Dry macaroni, spaghetti, and egg noodle products WPU0214020303 112 120 -7.4% $0.67 $4,185,074 -7.4%
Bread, Potato Pan Select SL 8 Cs $1.23 $1.23 0.0% 3,272,592 $4,017,703 $4,017,703 0.0% Other variety breads (rye, unleavened, raisin, potato) WPU0211020114 105 106 -1.2% $1.24 $4,067,076 -1.2%
Brownie, Blue Ribbon $1.73 $1.80 -4.2% 1,859,200 $3,210,605 $3,346,789 -4.2% Frozen bakery products WPU02850109 263 266 -1.4% $1.75 $3,255,413 -1.4%
Pretzel, Par Baked, Bavarian Flavored $1.90 $1.90 0.1% 4,229,055 $8,029,786 $8,023,702 0.1% Other chips, sticks (hard pretzels, bacon rinds,) WPU028901723 135 129 4.0% $1.82 $7,706,626 4.0%
Tortilla Chips, White $0.55 $0.63 -13.7% 11,035,642 $6,123,013 $6,962,892 -13.7% Chips (potato, corn, etc.) WPU02890172 218 210 3.5% $0.54 $5,911,269 3.5%
Overall Performance $48,453,090 $51,584,803 -6.5% Overall Performance $48,777,844 -0.7%

Sources & Notes:
[1]: Products are based on Apple Price Index.
[2]: Average actual store cost for 2014 is calculated by taking the average of prices from January 2014 through December 2014.
[3]: Average actual store cost for 2015 is calculated by taking the average of prices from January 2015 through December 2015.
[4]: Change in average actual store cost= -{[3] - [2]}/[2].
[5]: Budgeted volumes for 2015 are based on Apple Price Index.
[6]: [2] x [5].
[7]: [3] x [5].
[8]: -{[7] - [6]}/[6]. Notice that [4] & [8] have the same results.
[9]: PPI sub-indices are selected based on resemblance with products in Apple Market Basket.
[10]: See PPI Codes on the Bureau of Labor Statistics: http://www.bls.gov/news.release/pdf/ppi.pdf
[11]: Data were retrieved from the Bureau of Labor Statistic website: http://data.bls.gov/cgi-bin/srgate
[12]: Data were retrieved from the Bureau of Labor Statistic website: http://data.bls.gov/cgi-bin/srgate
[13]: Change in PPI sub-indices = -{[12] - [11]}/[11].
[14]: [2] x {1 - [13]}.
[15]: [5] x [14].
[16]: -{[15] - [6]}/[6]. Notice that [13] & [16] have the same results.