Question

Using the spreadsheet on Page 7, extend the savings in our COGS by 1% and replicate this five (5) times, showing how it would impact Prices (CIF & FOB), and Gross Profit in each case. Recommend using a spreadsheet, but I will accept handwritten on this one.

What if....... CIF $ 1.363 $ 1.350 $ 1.336 $ 1.322 $ 1.309 $ 1.295 Given COGS-1% COGS-2% COGS-3% COGS-4% COGS-5% FOB $ 1.260 $ 1.247 $ 1.235 $ 1.222 $ 1.210 $ 1.197 COGS $ 0.882 $ 0.873 $ 0.864 $ 0.856 $ 0.847 $ 0.838 Gross Profit $ 0.378 $ 0.374 $ 0.370 $ 0.367 $ 0.363 $ 0.359

Answer 1

Given
CIF	1.363	1.35	1.336	1.322	1.309	1.295
Given
COGS		1%	2%	3%	4%	5%
FOB	1.260	1.247	1.235	1.222	1.210	1.197
COGS	0.882	0.873	0.864	0.856	0.847	0.838
Gross Profit	0.378	0.374	0.371	0.366	0.363	0.359
Saving of 1% in COGS
CIF	1.363	1.335	1.321	1.307	1.297	1.281
COGS		2%	3%	4%	5%	6%
IF		0.088	0.086	0.085	0.087	0.084
FOB	1.260	1.247	1.235	1.222	1.210	1.197
COGS	0.882	0.864	0.856	0.847	0.838	0.829
Gross Profit	0.378	0.383	0.379	0.375	0.372	0.368