Transcript Cause and Effect Diagram

DREAM BEAUTY
Current Assignment of Costs
(000')
Segment
Retail
C-Stores
Mass
Merchants
Total
Sales
COGS
Gross Margin
$65,000
$26,000
$39,000
$39,000
$15,600
$23,400
$26,000
$10,400
$15,600
$130,000
$52,000
$78,000
Ordering Costs
Packaging Costs
Labeling Costs
Delivery Costs
Total Logistics Cost
$5,000
$4,000
$1,000
$15,000
$25,000
$3,000
$2,400
$600
$9,000
$15,000
$2,000
$1,600
$400
$6,000
$10,000
$10,000
$8,000
$2,000
$30,000
$50,000
Segment Profit
% Contribution
$14,000
22%
$8,400
22%
$5,600
22%
$28,000
22%
Dream Beauty-Activity Based
Analysis
(000')
Segment
Retail
Sales
COGS
Gross Margin
C-Stores
Mass
Merchants
$65,000
$26,000
$39,000
$39,000
$15,600
$23,400
$26,000
$10,400
$15,600
$130,000
$52,000
$78,000
Ordering Costs
Packaging Costs
Labeling Costs
Delivery Costs
Total Logistics Cost
$2,777
$3,200
$0
$8,333
$14,311
$6,944
$4,400
$0
$20,833
$32,177
$277
$400
$2,000
$833
$3,511
$10,000
$8,000
$2,000
$30,000
$50,000
Segment Profit
% Contribution
$24,688
38%
($8,777)
-23%
$12,089
46%
$28,000
22%
Total
Customer Analysis
C-Stores
(000')
Store Name
Sales
Cosmo Naturelle
La Belle Femme
Beautyss Bliss
Looking Good
Love Your Style
Nuttin Homely
Make-up Galore
Wild by Nature
Beautee Fatale
Fruity Beauty
L'Air Du Jour
Tuti Fruity
Le Beau Monsieur
$3,500
$5,000
$10,000
$1,500
$5,000
$1,000
$2,000
$3,000
$1,000
$1,500
$1,000
$2,000
$2,500
$1,400
$2,000
$4,000
$600
$2,000
$400
$800
$1,200
$400
$600
$400
$800
$1,000
$2,100
$3,000
$6,000
$900
$3,000
$600
$1,200
$1,800
$600
$900
$600
$1,200
$1,500
Totals
$39,000
$15,600
$23,400
COGS
G. Margin
T. Cost
Profit/Store
Customer Analysis
C-Stores
Order Cost:
Packaging Cost:
Delivery Cost:
Store Name
Love Your Style
Looking Good
Wild by Nature
Beautyss Bliss
Cosmo Naturelle
Beautee Fatale
La Belle Femme
Le Beau Monsieur
Fruity Beauty
Tuti Fruity
L'Air Du Jour
Make-up Galore
Nuttin Homely
Totals
$6,944
$4,400
$20,833
Orders
Pcking
(000')
Dlvry
Orders $ Pcking $
Dlvry $
T. Cost
300
75
200
450
60
100
200
320
120
250
150
175
100
50
10
100
150
30
100
20
200
120
200
75
10
35
300
75
200
450
60
100
200
320
120
250
150
175
100
$833
$208
$555
$1,249
$166
$277
$555
$888
$333
$694
$416
$486
$277
$200
$40
$400
$600
$120
$400
$80
$800
$480
$800
$300
$40
$140
$2,499
$624
$1,666
$3,749
$499
$833
$1,666
$2,666
$999
$2,083
$1,249
$1,458
$833
$3,533
$873
$2,622
$5,599
$786
$1,511
$2,302
$4,355
$1,813
$3,577
$1,966
$1,984
$1,251
2,500
1,100
2,500
$6,944
$4,400
$20,833
$32,177
Customer Analysis
C-Stores
(000')
Store Name
Sales
Cosmo Naturelle
La Belle Femme
Beautyss Bliss
Looking Good
Love Your Style
Nuttin Homely
Make-up Galore
Wild by Nature
Beautee Fatale
Fruity Beauty
L'Air Du Jour
Tuti Fruity
Le Beau Monsieur
$3,500
$5,000
$10,000
$1,500
$5,000
$1,000
$2,000
$3,000
$1,000
$1,500
$1,000
$2,000
$2,500
$1,400
$2,000
$4,000
$600
$2,000
$400
$800
$1,200
$400
$600
$400
$800
$1,000
$2,100
$3,000
$6,000
$900
$3,000
$600
$1,200
$1,800
$600
$900
$600
$1,200
$1,500
$786
$2,302
$5,599
$873
$3,533
$1,251
$1,984
$2,622
$1,511
$1,813
$1,966
$3,577
$4,355
$1,313
$697
$400
$26
($533)
($651)
($784)
($822)
($911)
($913)
($1,366)
($2,377)
($2,855)
Totals
$39,000
$15,600
$23,400
$32,172
($8,776)
COGS
G. Margin
T. Cost
Profit/Store
Pareto Results
• Keep as Customers:
–
–
–
–
Looking Good
Beautyss Bliss
Cosmo Naturelle
La Belle Femme
• Get rid of the rest, or increase Ordering,
Packaging, and Delivery charges.
Profitability Analysis -- Retail
Gross
Margin
Net
36.48%
Cost of Goods Sold
23,713,889
Margin
65,000,000
39,000,000
Prof it
Net Prof it
Sales
26,000,000
Total
/
Expenses
Variable Expenses
15,286,111
Sales
Return on
65,000,000
Net Sales)
3,200,000
Order Processing
2,777,778
Income
Fixed Expenes
Taxes
Assets
8,333,333
Packaging
15,286,111
(Net Prof it/
Transportation
-
-
Other
Inventory Carrying
975,000
203.61%
*
Inventory
(Net Prof it/
Total Assets)
Sales
Asset
65,000,000
Turnover
5.58
/
6,500,000
Current
Assets
Accounts
11,646,666
Receivable
Total
5,146,666
(Net Sales/
Assets
Fixed
Total Assets)
11,646,666
Assets
-
Other Current
Assets
-
Profitability Analysis -- C-Stores
Gross
Margin
Net
-23.51%
Cost of Goods Sold
(9,167,778)
Margin
39,000,000
23,400,000
Profit
Net Profit
Sales
15,600,000
Total
/
Expenses
32,567,778
Return on
39,000,000
Net Sales)
Assets
20,833,333
Packaging
Variable Expenses
32,567,778
Sales
(Net Profit/
Transportation
4,400,000
Order Processing
6,944,444
Income
Fixed Expenes
Taxes
-
-
Other
Inventory Carrying
390,000
-122.65%
*
Inventory
(Net Profit/
Total Assets)
Sales
Asset
39,000,000
Turnover
5.22
2,600,000
Current
Assets
/
7,475,000
Total
(Net Sales/
Total Assets)
Assets
7,475,000
Accounts
Receivable
4,875,000
Fixed
Assets
-
Other Current
Assets
-
Profitability Analysis -- Mass M.
Gross
Margin
Net
45.83%
Cost of Goods Sold
11,915,556
Margin
26,000,000
15,600,000
Prof it
Net Prof it
Sales
10,400,000
Total
/
Expenses
3,684,444
Return on
26,000,000
Net Sales)
Assets
833,333
Packaging
Variable Expenses
3,684,444
Sales
(Net Prof it/
Transportation
400,000
Order Processing
277,778
Income
Fixed Expenes
Taxes
-
-
Labeling
2,000,000
Inventory Carrying
173,333
97.36%
*
Inventory
(Net Prof it/
Total Assets)
Sales
Asset
26,000,000
Turnover
2.12
1,155,555
Current
Assets
/
2,238,888
Total
Accounts
Receivable
1,083,333
(Net Sales/
Assets
Fixed
Total Assets)
12,238,888
Assets
Other Current
10,000,000
Assets
-