Page 118 - New Employee Onboarding

Confidential and Privileged
For the Audit and Finance Committee's Review

Work-paper #3-1:
Pancake Market Basket vs. Modified Producer Price Index:
2015 Performance by Category

Category: Eggs
Pancake 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]
Egg Whites $1.39 $1.57 -13.3% 1,526,019 $2,119,477 $2,401,301 -13.3% Processed eggs, liquid, dried, or frozen WPU02830111 193 284 -47.4% $2.05 $3,123,536 -47.4%
Egg, Fresh Shell, Medium Loose $1.17 $1.65 -40.6% 8,912,502 $10,433,568 $14,669,057 -40.6% Eggs, medium WPU01710704 178 231 -30.0% $1.52 $13,559,337 -30.0%
Egg, Liquid, w/Citric $0.82 $0.91 -11.6% 57,606,814 $47,236,047 $52,693,775 -11.6% Processed eggs, liquid, dried, or frozen WPU02830111 193 284 -47.4% $1.21 $69,613,163 -47.4%
Overall Performance $59,789,092 $69,764,133 -16.7% Overall Performance $86,296,036 -44.3%

Category: Pork
Pancake 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, SM+ Slab, 16/20 $2.70 $1.99 26.3% 1,104,855 $2,980,528 $2,197,908 26.3% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.46 $2,718,418 8.8%
Bacon, SM+ SS, 16/20, 25 lb $2.78 $2.07 25.6% 16,003,950 $44,411,803 $33,049,317 25.6% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.53 $40,506,194 8.8%
Ham, Diced, WA, GFGB, 4/5 lbs $2.55 $2.18 14.4% 1,602,600 $4,079,942 $3,492,731 14.4% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.32 $3,721,148 8.8%
Ham, Sliced, 4 oz $3.20 $2.65 17.2% 2,190,576 $7,000,530 $5,798,697 17.2% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.91 $6,384,898 8.8%
Ham, Water Added $2.42 $1.99 17.6% 1,839,640 $4,446,190 $3,663,058 17.6% Pork, processed or cured, not canned or made into sausage WPU02210447 153 140 8.8% $2.20 $4,055,189 8.8%
Sausage, Link, GFGB FC Skin-On, 20 lbs $2.02 $1.68 16.4% 8,680,640 $17,496,154 $14,622,250 16.4% Fresh/processed sausage, deli & cooked meats, etc. WPU02210503 154 152 1.5% $1.99 $17,241,778 1.5%
Sausage, Split Smoked $2.15 $1.97 8.6% 1,721,784 $3,707,832 $3,388,823 8.6% Fresh/processed sausage, deli & cooked meats, etc. WPU02210503 154 152 1.5% $2.12 $3,653,924 1.5%
Overall Performance $84,122,979 $66,212,784 21.3% Overall Performance $78,281,549 6.9%

Sources & Notes:
[1]: Products are based on Pancake 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 Pancake 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 Pancake 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.