|Case Title||Cafes Monte Bianco: Building a Profit Plan||Price||$75|
Profit and Loss Statement
Non production expenses are showing a huge decrease compared to the financial results of year 2000 (see P&L sheet). There are no marketing costs as an advertisement to sale ratio is 0% at the given sales volume of private brand coffee. Selling, administrative and research expenses also show a significant decline. Profits yet are at the lower side showing a decrease of around 520 million Liras compared to year 2000. This is because of the lesser gross profit margins in the private brand coffee sold to retailers. Gross profit margins of premium coffee are 14,000 to 22,000 liras per KG compared to 2,200 liras per KG of private brand coffee. That is why; despite high volume of sales and utilization of full production capacity, expected profits are less than year 2000.
|No of Words||1262|
|Keywords||Performance measurement ,Planning systems, Profit planning, Profitability analysis, Return on investment|
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