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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 581 |
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Even a rough guess would put the number at $11-14 million annually. All MDF looks pretty good if that’s all we consider.
But even though plastic wrap is currently a drag on profits, it offers a much higher gross profit per pound as noted in the table below. Bottom line here is that the payout on this system-wide execution gamble is no more than the predicted 5% loss from dropping the off-invoice discounts currently in place as noted below...
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Profit 11718 2806 1351
Current Operating Profit 38562 -1103 9013
Operating Profit at 5% Loss 26844 -3909 7662
Albrecht’s position that discounts to retailers do “absolutely no good at all†fails to recognize that RMC’s products are not complex to produce and require no secret recipe; that the discounts drive the majority of sales for a product line that commands top dollar among peers and 44% of the combined total dollar market for plastic bags, wrap, foil, and wax paper...
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