Mojo Music is a CD store specializing in used CD and DVD rentals, as well as blank CD/DVD recording media. Our target customers are the 23,000 students of State University and the 40,000 non-student residents in the university area.

Located one half block from the university campus on Taylor Street, Mojo Music benefits from heavy student foot traffic. Taylor Street is the major retail/commercial section of the university area and is home to the university bookstore, as well as various coffee houses, restaurants, and shops that cater to the student population.

While the location is perfect for our target customers, it is crucial to understand their preferences when it comes to a CD store.

In the past, young adults used to create mix cassette tapes of their favorite music for personal use and as gifts for friends. However, with the availability of CD recording equipment, internet technology, and new recording formats like MP3, young adults now have the option to create personalized presentations of their favorite music. This has led to an increase in the market for used CDs, as young listeners can easily duplicate CDs for a fraction of the price. With new CDs typically priced at $16-$18, young adults prefer to buy used CDs for around half the cost ($8-$11). It is even more appealing if they can receive in-store credit by selling their own CDs to the store.

Mojo Music will offer popular new releases and used CDs, as well as an attractive CD buying program that rewards customers for their purchases. Additionally, customers will have the option to order any CD currently available, which will be in the store within three days.

Affordable blank CD/DVD recording media is another key offering that will attract our target customers. The largest group purchasing CD and DVD recorders are young adults between 17-25 years old. However, there is currently no store selling recording media within a 10-mile radius of the university.

Similarly, there is no video/DVD rental store near campus, with the closest rental store being four miles away. As DVD players have become more affordable, many students now own DVD/CD players, making DVD the preferred format for movies. However, the larger community still prefers video cassettes.

In response to this, Mojo Music will sell blank recording media and rent movies in DVD format.

Music Retail Business Plan Example

1.1 Objectives:

– Become the first choice for selling and buying CDs.

– Establish a strong DVD rental business.

– Increase blank media sales by 20% annually.

1.2 Mission:

Mojo Music’s mission is to offer:

– High-quality, affordable used CDs.

– Popular new CDs at the lowest prices.

– Affordable recording media.

– A wide selection of DVD rentals.

1.3 Keys to Success:

– Keep revenue from used CDs within the store.

– Provide a quality selection of used CDs.

– Offer discounted prices on popular new CDs.

– Provide popular DVDs for rental.

– Offer discounted prices on recording media.

Company Summary:

Mojo Music offers new CDs, used CDs, DVD rentals, and CD/DVD recording media. The store targets the 23,000 students of the State University and is conveniently located near the main entrance. This unique customer group is not currently served by existing CD stores or video rental outlets.

2.1 Start-up Summary:

Mojo Music’s start-up costs mainly involve inventory and display equipment. Karl Payne will invest $50,000 and has secured a $100,000 SBA loan, along with a $100,000 investment from a silent partner.

Music Retail Business Plan Example

Start-up Requirements:

– Legal: $1,000

– Stationery etc.: $0

– Brochures: $0

– Consultants: $0

– Insurance: $0

– Rent: $4,000

– Inventory: $120,000

– Expensed Equipment: $20,000

– Display Equipment: $6,000

– Other: $0

– Total Start-up Expenses: $151,000

Start-up Assets:

– Cash Required: $49,000

– Start-up Inventory: $0

– Other Current Assets: $0

– Long-term Assets: $50,000

– Total Assets: $99,000

Total Requirements: $250,000

Start-up Funding:

– Start-up Expenses to Fund: $151,000

– Start-up Assets to Fund: $99,000

– Total Funding Required: $250,000

Assets:

– Non-cash Assets from Start-up: $50,000

– Cash Requirements from Start-up: $49,000

– Additional Cash Raised: $0

– Cash Balance on Starting Date: $49,000

– Total Assets: $99,000

Liabilities and Capital:

– Liabilities:

– Current Borrowing: $0

– Long-term Liabilities: $100,000

– Accounts Payable (Outstanding Bills): $0

– Other Current Liabilities (interest-free): $0

– Total Liabilities: $100,000

Capital:

– Planned Investment:

– Karl Payne: $50,000

– Investor 2: $100,000

– Other: $0

– Additional Investment Requirement: $0

– Total Planned Investment: $150,000

– Loss at Start-up (Start-up Expenses): ($151,000)

– Total Capital: ($1,000)

Total Capital and Liabilities: $99,000

Total Funding: $250,000

Company Ownership:

The store owner is Karl Payne who has worked in CD stores for over ten years. Most recently, he was the store manager for CD Warehouse for seven years supervising a staff of 10.

Products:

Mojo Music offers popular new CDs, used CDs, DVD rentals, and CD/DVD recording media. The primary focus will be to satisfy the music/DVD needs of the target customers.

– New CDs: CDs that are popular with our target group.

– Used CDs: CDs that are in good condition and have a reasonable chance of being purchased.

– DVD rentals: Movies that are popular with our target customers.

– CD/DVD recording media: Provide the best quality for the best price.

Market Analysis Summary:

It is estimated that the university student community spends over $75 million with local businesses each year. Approximately 50% of these sales are for entertainment, including music and movies. The university’s commercial/retail area borders the east side of the campus, which is the main entrance onto campus. Each day, thousands of students shop and eat on Taylor Street before, after, and between classes.

Currently, if a student wanted to purchase a used CD, he/she would have to take a ten-minute drive to reach the only used CD store in town. Similarly, he/she would have to drive to reach the closest video rental store to the campus community.

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Mojo Music offers the student the ability to buy a CD or rent a DVD during the day while on campus.

Market Segmentation:

Mojo Music will focus on three significant customer groups:

– Used CD buyer/seller: The shelf life for music is very short with young adults. What was popular three months ago can quickly become boring. Mojo Music will be uniquely designed to attract and retain this important customer group.

– CD/DVD recording media buyer: This customer group is very significant. They have already embraced the technology that gives them the freedom to create their own CDs and DVDs. Mojo music will set up an in-house credit system to bring this customer group into the store.

– DVD renters: The student population represents a unique group of DVD users. Mojo Music’s location is perfect to capture the walk-in business for DVD rentals.

Music Retail Business Plan Example

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Used CD Buyer/Seller 15% 10,000 11,500 13,225 15,209 17,490 15.00%

CD/DVD Recording Media Buyer 10% 4,000 4,400 4,840 5,324 5,856 10.00%

DVD Renters 15% 10,000 11,500 13,225 15,209 17,490 15.00%

Other 0% 0 0 0 0 0 0.00%

Total 14.21% 24,000 27,400 31,290 35,742 40,836 14.21%

4.2 Target Market Segment Strategy

The advancement of CD recording equipment, Internet technology, and new recording formats like MP3 has turned young adults into a new type of music and movie consumer. This trend has depressed CD sales nationwide, and many CD stores have gone out of business in the past five years.

To be successful, a store must respond to the market opportunity the target consumer is providing. Though the game has changed, there is still tremendous opportunity if a CD store can read the market needs and trends correctly.

The student population that Mojo Music is targeting is very comfortable with the newest technology and has easy access to CD/DVD recording equipment. This creates a new expectation in the consumer’s mind concerning an affordable price for music. Most college-aged adults have reported that the price of new CDs should be lower. This search for a lower price led to the explosion of MP3 on the Internet. Consequently, CD recording media sales have increased.

Quality used CDs fill the niche created by this concern by offering a lower price for popular music.

Another area where the college-age consumers are leading the market is in the use of DVDs. At most video rental shops, DVDs are a small subsection of available rentals. Currently, these shops primarily serve consumers who prefer video cassettes. Though this trend is changing, DVD owners find the selection limited.

Strategy and Implementation Summary

Mojo Music will heavily promote the store. We will use the student daily paper to advertise a $2 off per CD coupon. In addition, we will have a drawing for five CD/DVD players each week. We will continue the drawings for the first eight weeks of the store’s operation.

5.1 Competitive Edge

Mojo Music’s competitive edge is:

– Location: Mojo Music is on Taylor Street, one half block from the entrance to the university. The student foot traffic on Taylor Street is strong. The closest used CD store to the university area is a ten-minute drive.

– Quality used CDs: With the average price for a new CD at $16-$18, young adults would rather buy a used CD for a little over half that price ($8-$11). It is even more attractive if they can get in-store purchasing credit by selling their own CDs to the store.

– CD/DVD recording media: Young adults between 17-25 years of age are the largest group purchasing CD and DVD recorders. There is no store that sells recording media within a 10-mile radius of the university.

– DVD rentals: The closest rental store is four miles off-campus. Due to the drop in price for DVD players, many students own DVD/CD players, so DVD is a reasonable format for movies.

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5.2 Sales Strategy

The key to Mojo Music’s sales strategy is to get the sellers of used CDs to spend their money in the store. To accomplish this goal, we will offer the seller two options for their CDs: cash and in-store credit. In-store credit will be 20% more than cash. This can be used to buy CDs or CD/DVD recording media. In-store credit can also be used to rent DVDs.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Music Retail Business Plan Example

Music Retail Business Plan Example

Sales Forecast

Sales Forecast
Year 1 Year 2 Year 3
Unit Sales
New CDs 18,400 20,000 23,000
Used CDs 33,500 38,000 41,000
CD/DVD Recording Media 15,100 18,000 21,000
DVD Rentals 28,100 30,000 33,000
Other 0 0 0
Total Unit Sales 95,100 106,000 118,000
Unit Prices Year 1 Year 2 Year 3
New CDs $16.00 $16.00 $16.00
Used CDs $10.00 $10.00 $10.00
CD/DVD Recording Media $10.00 $10.00 $10.00
DVD Rentals $3.00 $3.00 $3.00
Other $0.00 $0.00 $0.00
Sales
New CDs $294,400 $320,000 $368,000
Used CDs $335,000 $380,000 $410,000
CD/DVD Recording Media $151,000 $180,000 $210,000
DVD Rentals $84,300 $90,000 $99,000
Other $0 $0 $0
Total Sales $864,700 $970,000 $1,087,000
Direct Unit Costs Year 1 Year 2 Year 3
New CDs $11.00 $11.00 $11.00
Used CDs $5.00 $5.00 $5.00
CD/DVD Recording Media $4.00 $4.00 $4.00
DVD Rentals $1.00 $1.00 $1.00
Other $0.00 $0.00 $0.00
Direct Cost of Sales
New CDs $202,400 $220,000 $253,000
Used CDs $167,500 $190,000 $205,000
CD/DVD Recording Media $60,400 $72,000 $84,000
DVD Rentals $28,100 $30,000 $33,000
Other $0 $0 $0
Subtotal Direct Cost of Sales $458,400 $512,000 $575,000
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Management Summary

Karl Payne, owner/manager of Mojo Music, has over 15 years of experience in record/CD stores. As a student at State University, Karl worked at The Record Factory, a successful downtown record store, in the late 80’s. After graduating in 1989 with a BA in English, Karl went on to manage two record/CD stores: the Palace (89-93) and the CD Warehouse. Karl is an excellent staff supervisor and will excel in managing the staff of Mojo Music.

6.1 Personnel Plan

Mojo Music will have the following staff members:

  • Manager
  • Assistant manager
  • Four customer assistants
Personnel Plan
Year 1 Year 2 Year 3
Manager $36,000 $40,000 $45,000
Assistant Manager $30,000 $33,000 $37,000
Customer Assistants $72,000 $75,000 $80,000
Other $0 $0 $0
Total People 6 6 6
Total Payroll $138,000 $148,000 $162,000

Financial Plan

The following is the financial plan for Mojo Music.

7.1 Break-even Analysis

The monthly sales break-even point is approximately 6,200 units.

Music Retail Business Plan Example

Break-even Analysis

Monthly Units Break-even: 6,215

Monthly Revenue Break-even: $56,512

Assumptions:

– Average Per-Unit Revenue: $9.09

– Average Per-Unit Variable Cost: $4.82

– Estimated Monthly Fixed Cost: $26,553

Projected Profit and Loss

The table and charts below show the projected profit and loss for three years.

Music Retail Business Plan Example

Music Retail Business Plan Example

Music Retail Business Plan Example

Music Retail Business Plan Example

Pro Forma Profit and Loss:

Year 1 Year 2 Year 3

Sales $864,700 $970,000 $1,087,000

Direct Cost of Sales $458,400 $512,000 $575,000

Other Production Expenses $0 $0 $0

Total Cost of Sales $458,400 $512,000 $575,000

Gross Margin $406,300 $458,000 $512,000

Gross Margin % 46.99% 47.22% 47.10%

Expenses:

Payroll $138,000 $148,000 $162,000

Sales and Marketing and Other Expenses $100,000 $110,000 $130,000

Depreciation $7,140 $7,143 $7,143

Leased Equipment $0 $0 $0

Utilities $4,800 $4,800 $4,800

Insurance $0 $0 $0

Rent $48,000 $48,000 $48,000

Payroll Taxes $20,700 $22,200 $24,300

Other $0 $0 $0

Total Operating Expenses $318,640 $340,143 $376,243

Profit Before Interest and Taxes $87,660 $117,857 $135,757

EBITDA $94,800 $125,000 $142,900

Interest Expense $8,917 $7,001 $5,002

Taxes Incurred $23,623 $33,257 $39,227

Net Profit $55,120 $77,599 $91,529

Net Profit/Sales 6.37% 8.00% 8.42%

Projected Cash Flow:

The following is the projected cash flow for three years.

Music Retail Business Plan Example

Pro Forma Cash Flow

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $216,175 $242,500 $271,750
Cash from Receivables $506,165 $710,164 $795,988
Subtotal Cash from Operations $722,340 $952,664 $1,067,738
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $68,000 $0 $0
Subtotal Cash Received $790,340 $952,664 $1,067,738
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $138,000 $148,000 $162,000
Bill Payments $644,695 $762,547 $827,116
Subtotal Spent on Operations $782,695 $910,547 $989,116
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $19,992 $19,992 $19,992
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $802,687 $930,539 $1,009,108
Net Cash Flow ($12,347) $22,125 $58,630
Cash Balance $36,653 $58,778 $117,408

Projected Balance Sheet

7.4 Projected Balance Sheet

The projected balance sheet for three years is as follows:

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Cash $36,653 $58,778 $117,408
Accounts Receivable $142,360 $159,696 $178,958
Inventory $59,730 $66,714 $74,923
Other Current Assets $0 $0 $0
Total Current Assets $238,743 $285,189 $371,290
Long-term Assets
Long-term Assets $50,000 $50,000 $50,000
Accumulated Depreciation $7,140 $14,283 $21,426
Total Long-term Assets $42,860 $35,717 $28,574
Total Assets $281,603 $320,906 $399,864
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $79,475 $61,171 $68,592
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $79,475 $61,171 $68,592
Long-term Liabilities $80,008 $60,016 $40,024
Total Liabilities $159,483 $121,187 $108,616
Paid-in Capital $218,000 $218,000 $218,000
Retained Earnings ($151,000) ($95,880) ($18,281)
Earnings $55,120 $77,599 $91,529
Total Capital $122,120 $199,719 $291,248
Total Liabilities and Capital $281,603 $320,906 $399,864
Net Worth $122,120 $199,719 $291,248

Business Ratios

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 5735, Record and Prerecorded Tape Stores, are shown for comparison.

Pro Forma Profit and Loss

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Sales $52,000 $54,600 $59,700 $68,800 $80,400 $85,400 $65,000 $55,200 $72,000 $78,800 $89,600 $103,200

Direct Cost of Sales $27,000 $28,700 $32,100 $36,400 $43,000 $46,000 $35,000 $29,200 $38,400 $41,200 $47,100 $54,300

Other Production Expenses $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Cost of Sales $27,000 $28,700 $32,100 $36,400 $43,000 $46,000 $35,000 $29,200 $38,400 $41,200 $47,100 $54,300

Gross Margin $25,000 $25,900 $27,600 $32,400 $37,400 $39,400 $30,000 $26,000 $33,600 $37,600 $42,500 $48,900

Gross Margin % 48.08% 47.44% 46.23% 47.09% 46.52% 46.14% 46.15% 47.10% 46.67% 47.72% 47.43% 47.38%

Expenses

Payroll $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500 $11,500

Sales and Marketing and Other Expenses $20,000 $20,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Depreciation $595 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595 $595

Leased Equipment $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Utilities $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400 $400

Insurance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Rent $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000 $4,000

Payroll Taxes 15% $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725 $1,725

Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Total Operating Expenses $38,220 $38,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220 $24,220

Profit Before Interest and Taxes ($13,220) ($12,320) $3,380 $8,180 $13,180 $15,180 $5,780 $1,780 $9,380 $13,380 $18,280 $24,680

EBITDA ($12,625) ($11,725) $3,975 $8,775 $13,775 $15,775 $6,375 $2,375 $9,975 $13,975 $18,875 $25,275

Interest Expense $819 $806 $792 $778 $764 $750 $736 $722 $708 $695 $681 $667

Taxes Incurred ($4,212) ($3,938) $776 $2,221 $3,725 $4,329 $1,513 $317 $2,601 $3,806 $5,280 $7,204

Net Profit ($9,828) ($9,188) $1,812 $5,182 $8,691 $10,101 $3,531 $740 $6,070 $8,880 $12,320 $16,809

Net Profit/Sales -18.90% -16.83% 3.03% 7.53% 10.81% 11.83% 5.43% 1.34% 8.43% 11.27% 13.75% 16.29%

Pro Forma Cash Flow

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Cash Received

Cash from Operations

Cash Sales $13,000 $13,650 $14,925 $17,200 $20,100 $21,350 $16,250 $13,800 $18,000 $19,700 $22,400 $25,800

Cash from Receivables $0 $1,300 $39,065 $41,078 $45,003 $51,890 $60,425 $63,540 $48,505 $41,820 $54,170 $59,370

Subtotal Cash from Operations $13,000 $14,950 $53,990 $58,278 $65,103 $73,240 $76,675 $77,340 $66,505 $61,520 $76,570 $85,170

Additional Cash Received

Sales Tax, VAT, HST/GST Received 0.00% $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Current Borrowing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Other Liabilities (interest-free) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

New Long-term Liabilities $0 $0 $0 $0 $0 $0 $0

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 12.18% 12.06% 2.40%
Percent of Total Assets
Accounts Receivable 50.55% 49.76% 44.75% 18.30%
Inventory 21.21% 20.79% 18.74% 38.60%
Other Current Assets 0.00% 0.00% 0.00% 21.70%
Total Current Assets 84.78% 88.87% 92.85% 78.60%
Long-term Assets
Long-term Assets 15.22% 11.13% 7.15% 21.40%
Total Assets 100.00% 100.00% 100.00% 100.00%
Liabilities and Capital
Current Liabilities
Accounts Payable 28.22% 19.06% 17.15% 40.30%
Long-term Liabilities 28.41% 18.70% 10.01% 14.70%
Total Liabilities 56.63% 37.76% 27.16% 55.00%
Net Worth 43.37% 62.24% 72.84% 45.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 46.99% 47.22% 47.10% 33.50%
Selling, General & Administrative Expenses 40.61% 39.22% 38.68% 18.50%
Advertising Expenses 5.78% 5.15% 4.60% 3.60%
Profit Before Interest and Taxes 10.14% 12.15% 12.49% 1.60%
Main Ratios
Current 3.00 4.66 5.41 1.99
Quick 2.25 3.57 4.32 0.78
Total Debt to Total Assets 56.63% 37.76% 27.16% 55.00%
Pre-tax Return on Net Worth 64.48% 55.51% 44.89% 4.10%
Sales Forecast
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
New CDs 1,000 1,000 1,300 1,400 1,800 2,000 1,500 1,200 1,600 1,600 1,900 2,100
Used CDs 2,000 2,500 2,500 2,800 3,000 3,200 2,500 2,000 2,800 3,000 3,200 4,000
CD/DVD Recording Media 1,000 1,000 1,000 1,300 1,500 1,300 1,000 1,000 1,000 1,300 1,700 2,000
DVD Rentals 2,000 1,200 1,300 1,800 2,200 2,800 2,000 2,000 2,800 3,400 3,400 3,200
Other 0 0 0 0 0 0 0 0 0 0 0 0
Total Unit Sales 6,000 5,700 6,100 7,300 8,500 9,300 7,000 6,200 8,200 9,300 10,200 11,300
Unit Prices Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
New CDs $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00 $16.00
Used CDs $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
CD/DVD Recording Media $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00 $10.00
DVD Rentals $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Sales
New CDs $16,000 $16,000 $20,800 $22,400 $28,800 $32,000 $24,000 $19,200 $25,600 $25,600 $30,400 $33,600
Used CDs $20,000 $25,000 $25,000 $28,000 $30,000 $32,000 $25,000 $20,000 $28,000 $30,000 $32,000 $40,000
CD/DVD Recording Media $10,000 $10,000 $10,000 $13,000 $15,000 $13,000 $10,000 $10,000 $10,000 $13,000 $17,000 $20,000
DVD Rentals $6,000 $3,600 $3,900 $5,400 $6,600 $8,400 $6,000 $6,000 $8,400 $10,200 $10,200 $9,600
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total Sales
Direct Unit Costs Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12
New CDs $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00 $11.00
Used CDs $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00 $5.00
CD/DVD Recording Media $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00
DVD Rentals $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
Other $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00
Direct Cost of Sales
New CDs $11,000 $11,000 $14,300 $15,400 $19,800 $22,000 $16,500 $13,200 $17,600 $17,600 $20,900 $23,100
Used CDs $10,000 $12,500 $12,500 $14,000 $15,000 $16,000 $12,500 $10,000 $14,000 $15,000 $16,000 $20,000
CD/DVD Recording Media $4,000 $4,000 $4,000 $5,200 $6,000 $5,200 $4,000 $4,000 $4,000 $5,200 $6,800 $8,000
DVD Rentals $2,000 $1,200 $1,300 $1,800 $2,200 $2,800 $2,000 $2,000 $2,800 $3,400 $3,400 $3,200
Other $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

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