Page 129 - New Employee Onboarding

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

Work-paper #3-6:
Pancake Market Basket vs. Modified Producer Price Index:
2015 Performance by Category

Category: Paper & Packaging
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]
Bag, Carry Out, Hybrid SQ Sack 13x9x22 $25.73 $25.93 -0.8% 28,898 $743,589 $749,382 -0.8% Multiweb film/film combination specialty bags, pouches WPU091502163 123 121 1.5% $25.34 $732,205 1.5%
Container, 9" Sq, Blk, PP, IHOP $21.44 $20.90 2.5% 137,895 $2,956,226 $2,882,646 2.5% Other plastic packaging products, exc film, sheet WPU072A01012 111 106 4.1% $20.55 $2,834,322 4.1%
Cup, 12 oz, IHOP $62.39 $57.62 7.7% 21,801 $1,360,191 $1,256,062 7.7% Other plastic packaging products, exc film, sheet WPU072A01012 111 106 4.1% $59.82 $1,304,102 4.1%
Lid for large tray $22.65 $22.20 2.0% 144,255 $3,267,612 $3,202,813 2.0% Other plastic packaging products, exc film, sheet WPU072A01012 111 106 4.1% $21.72 $3,132,868 4.1%
Napkin, Dinner, 2-Ply, 16x164F2.8M $28.89 $28.14 2.6% 120,324 $3,476,126 $3,385,476 2.6% Sanitary tissue paper products, made from purchased WPU091501235 114 114 0.1% $28.86 $3,472,054 0.1%
Overall Performance $11,803,744 $11,476,380 2.8% Overall Performance $11,475,551 2.8%
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.