Page 363 - Onboarding May 2017

Confidential and Privileged
For The Audit and Finance Committee's Review
Work-paper #3-6:
Apple Market Basket vs. Modified Producer Price Index:
2016 Performance by Category
Category: Oils
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 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 4.4% 3,152,904 $1,919,673 $1,834,586 4.4% Margarine, butter blends, and butter substitutes WPU02780109 316 324 -2.7% $0.63 $1,970,801 -2.7%
Shortening, Creamy GFGB $0.53 $0.51 4.9% 18,524,436 $9,883,519 $9,397,757 4.9% Cooking oils WPU02780115 78 77 1.0% $0.53 $9,788,678 1.0%
Overall Performance $11,803,192 $11,232,342 4.8% Overall Performance $11,759,479 0.4%
Category: Chemicals
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 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]
Machine Detergent, Solid Power XL $2.34 $2.40 -2.7% 1,714,248 $4,014,574 $4,121,876 -2.7% Commercial, industrial, and institutional dishwashing detergent WPU0671040103 108 110 -1.8% $2.38 $4,085,981 -1.8%
Overall Performance $4,014,574 $4,121,876 -2.7% Overall Performance $4,085,981 -1.8%
Sources & Notes:
[1]: Products are based on Apple 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 Apple 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 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.