Page 103 - New Employee Onboarding

Confidential and Privileged
For The Audit and Finance Committee's Review
Work-paper #3-5:
Apple Market Basket vs. Modified Producer Price Index:
2015 Performance by Category

Category: Produce
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]
Broccoli Florets, 6/3 lbs $1.29 $1.32 -1.9% 4,426,761 $5,717,900 $5,829,388 -1.9% Broccoli WPU01130222 166 219 -32.0% $1.70 $7,545,609 -32.0%
Potatoes, Red, A $0.33 $0.32 2.5% 19,247,820 $6,271,581 $6,116,316 2.5% Round red potatoes WPU01130604 145 151 -4.0% $0.34 $6,522,575 -4.0%
Potatoes, Russet, Baker $0.37 $0.39 -5.4% 11,058,450 $4,054,765 $4,274,091 -5.4% Russet potatoes WPU01130603 139 124 10.8% $0.33 $3,615,545 10.8%
Romaine (Shredded) $1.37 $1.36 0.9% 1,418,272 $1,946,578 $1,929,244 0.9% Lettuce WPU01130215 343 419 -22.4% $1.68 $2,381,661 -22.4%
Romaine (Whole Head) $0.55 $0.55 -0.2% 7,921,836 $4,363,611 $4,372,099 -0.2% Lettuce WPU01130215 343 419 -22.4% $0.67 $5,338,929 -22.4%
Lettuce, Iceberg 24 count $0.50 $0.51 -1.9% 9,414,538 $4,672,749 $4,762,187 -1.9% Lettuce WPU01130215 343 419 -22.4% $0.61 $5,717,163 -22.4%
Spinach 4 x 2.5# bags $1.59 $1.58 0.2% 2,299,860 $3,647,195 $3,639,528 0.2% Spinach WPU01130224 438 430 1.8% $1.56 $3,581,461 1.8%
Onions, Yellow 50# $0.33 $0.33 0.0% 4,692,000 $1,567,910 $1,567,910 0.0% Dry onions WPU01130216 179 157 12.6% $0.29 $1,370,153 12.6%
Tomatoes 5x6s, 6x7s $0.91 $0.94 -3.8% 9,291,965 $8,455,688 $8,773,164 -3.8% Tomatoes WPU01130217 195 203 -4.4% $0.95 $8,831,079 -4.4%
Overall Performance $40,697,977 $41,263,927 -1.4% Overall Performance $44,904,176 -10.3%
Category: Paper & Packaging

Commentary:
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]
Base, 56 oz, Applebee's, Blk PP $21.63 $21.04 2.7% 243,247 $5,260,897 $5,117,271 2.7% Other plastic packaging products, exc film, sheet, WPU072A01012 111 106 4.1% $20.74 $5,043,957 4.1%
Container, Embossed Hinged Foam $24.00 $23.65 1.4% 136,409 $3,273,181 $3,225,929 1.4% Polystyrene foam food containers WPU072A01015 107 101 5.0% $22.81 $3,110,838 5.0%
Lid, Domed, 56 oz, Applebee's, Blk, PP Base $21.74 $21.26 2.2% 220,898 $4,802,237 $4,697,243 2.2% Other plastic packaging products, exc film, sheet, WPU072A01012 111 106 4.1% $20.84 $4,604,210 4.1%
Bags, Hybrid , 13"x9"x22" $25.81 $27.29 -5.7% 50,203 $1,295,553 $1,369,925 -5.7% Multiweb film/film combination specialty bags, pouches WPU091502163 123 121 1.5% $25.41 $1,275,719 1.5%
Dinner Napkins, White (15x16.25) $29.01 $28.36 2.2% 186,846 $5,419,473 $5,299,541 2.2% Sanitary tissue paper products, made from purchased WPU091501235 114 114 0.1% $28.97 $5,413,125 0.1%
Paper, Register Receipt, Stock Thermal, 80mmx273 $44.74 $44.72 0.0% 30,890 $1,381,910 $1,381,254 0.0% Paper supplies for business machines and other misc WPU09150655 184 178 3.3% $43.26 $1,336,369 3.3%
Napkins, Beverage, "Here's to You", Applebee's $26.63 $26.15 1.8% 41,992 $1,118,339 $1,098,220 1.8% Sanitary tissue paper products, made from purchased WPU091501235 114 114 0.1% $26.60 $1,117,029 0.1%
Overall Performance $22,551,591 $22,189,383 1.6% Overall Performance $21,901,247 2.9%
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.