Page 348 - Aida Hovsepian Onboarding

Confidential and Privileged
For the Audit and Finance Committee's Review
Work-paper #3-6:
Pancake Market Basket vs. Modified Producer Price Index:
2016 Performance by Category
Category: Oils
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 2015 2016 fav/(unfav) Volume 2016 2015 2016 fav/(unfav) Referenced PPI Sub-Indices PPI Code 2015 2016 fav/(unfav) 2016 2016 fav/(unfav)
[1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] [14] [15] [16]
Butter Alternative, Liquid GFGB $0.61 $0.58 4.6% 13,201,200 $8,020,717 $7,652,480 4.6% Margarine, butter blends, and butter substitutes WPU02780109 316 324 -2.7% $0.62 $8,234,340 -2.7%
Oil, Soybean $0.53 $0.50 4.9% 1,930,560 $1,020,731 $970,807 4.9% Cooking oils WPU02780115 78 77 1.0% $0.52 $1,010,937 1.0%
Shortening, Creamy GFGB $0.53 $0.51 5.1% 9,500,004 $5,080,632 $4,823,223 5.1% Cooking oils WPU02780115 78 77 1.0% $0.53 $5,031,879 1.0%
Overall Performance $14,122,080 $13,446,510 4.8% Overall Performance $14,277,156 -1.1%
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 2015 2016 fav/(unfav) Volume 2016 2015 2016 fav/(unfav) Referenced PPI Sub-Indices PPI Code 2015 2016 fav/(unfav) 2016 2016 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 $2.17 $2.11 3.1% 415,593 $903,836 $875,541 3.1% Multiweb film/film combination specialty bags, pouches WPU091502163 121 117 3.0% $2.11 $876,583 3.0%
Can Liner, 36x57, Natural HDPE, 13 mic $1.14 $1.07 6.2% 1,054,056 $1,197,522 $1,123,776 6.2% Other Polyethylene Bags, Pouches, and Liners WPU0915021625 105 102 2.7% $1.10 $1,164,693 2.7%
Container, 9" Sq, Blk, PP, IHOP $1.72 $1.53 11.0% 1,678,146 $2,882,900 $2,566,105 11.0% Other plastic packaging products, exc film, sheet WPU072A01012 106 104 1.9% $1.68 $2,827,586 1.9%
Container, Hinged, Black, Embossed IHOP, 8x8 $2.68 $2.69 -0.6% 595,584 $1,593,356 $1,602,399 -0.6% Polystyrene Foam Food Containers WPU072A01015 111 111 0.0% $2.67 $1,593,116 0.0%
Cup, 12 oz, IHOP $2.10 $2.05 2.3% 643,170 $1,347,924 $1,316,471 2.3% Other plastic packaging products, exc film, sheet WPU072A01012 106 104 1.9% $2.06 $1,322,061 1.9%
Lid for large tray $2.58 $2.39 7.3% 1,109,297 $2,863,807 $2,654,971 7.3% Other plastic packaging products, exc film, sheet WPU072A01012 106 104 1.9% $2.53 $2,808,859 1.9%
Napkins, Dinner, White (15x16.25) $0.86 $0.86 0.1% 5,097,054 $4,365,287 $4,358,889 0.1% Sanitary tissue paper products, made from purchased WPU091501235 114 113 0.8% $0.85 $4,332,324 0.8%
Paper, Register Receipt, Stock Thermal, 80mmx273 $1.25 $1.25 -0.1% 844,758 $1,058,418 $1,059,430 -0.1% Paper Supplies for Business Machines and Other WPU09150655 178 182 -2.3% $1.28 $1,082,969 -2.3%
Overall Performance $16,213,050 $15,557,581 4.0% Overall Performance $16,008,192 1.3%
Sources & Notes:
[1]: Products are based on Pancake Price Index.
[2]: Average actual store cost for 2015 is calculated by taking the average of prices from January 2015 through December 2015.
[3]: Average actual store cost for 2016 is calculated by taking the average of prices from January 2016 through December 2016.
[4]: Change in average actual store cost= -{[3] - [2]}/[2].
[5]: Budgeted volumes for 2016 are based on Pancake Price Index. UOM is pound.
[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.