BPS

% %age %age Market Share

Units Revenues Margins (%)
Video 35% 23% 20% 8%
Data 53% 54% 51% 23%
%age of BD 600 in Data 79% 67%
Graphics 12% 23% 55%
%age of BG 400 in Graphics 85% 80% 29%
Total 100% 100% 100%

Price of Street Revenue % Revenue

Street
Units BD 600 / of from Own
Revenues
BG 400 BD 600 / BG 400 Dist.

Video 1540 7000 10780000 60%

Data 2332 32996060 60%
%age of BD 600 in Data 1842 12000 22107360
Graphics 528 13464000 60%
%age of BG 400 in Graphics 449 24000 10771200
Total 4400
 Annual
Growth Rate

1% Step 01 Key in the data table which gives the %age units, %age revenues and % margins @ BARCO
12% Step 02 Using above table, find number of units sold (segment and model wise) [Total units known]
Step 03 Take unit prices of the most moving items for the case
25% Step 04 Next find total revenue for BD600 and BG400. From that extrapolate Total Street Revenues
Step 05 Look at percentage revenue and margins from own distributers vs. other distributers
Step 06 From this data, find out the actual revenue of BARCO [Not the Street revenues]
Step 07 BARCO's cost data is given in terms of percetages. From these data points, estimate the cost
Step 08 Revenues less cost gives gross margins product segment wise. The ratios match those given
Step 09 Add to this table the data on Market Share and Market Growth from the case

% Revenue BPS
Mark down Mark down for BARCO Actual BARCO Cost Gross %age
from Other Market
for own Dist Other Channel Revenues Base Margins Margin
Channels Share (%)

70% 40% 50% 6683600 2695000 3988600 17 8%

70% 40% 50% 20457557 6996000 13461557 58 23%

70% 40% 50% 8347680 2534400 5813280 25 55%

35488837 12225400 23263437 100

ins @ BARCO
al units known]

treet Revenues
tributers
es]
stimate the cost
tch those given
e

Annual
Growth
Rate

1%
12%

25%
 Price of BARCO Unit
BD 600 / Actual transfer BARCO
Units BG 400 Revenues price Cost Base Unit cost
Video 1540 7000 6683600 4340 2695000 1750
Data 2332 20457557 8773 6996000 3000
%age of BD 600 in Data 1842 12000
Graphics 528 8347680 15810 2534400 4800
%age of BG 400 in Graphics 449 24000
Total 4400 35488837 12225400
35.49 12.23
Revenue Cost
(Million $) (Million $)

5813280 24000 20000 19000 18000 17000 16000

100 449
90 404
80 359
70 314
60 269
50 224
 BPS Annual Annual
Gross Unit %age Market revenues Growth
Margins Margins Margin Share (%) Segment-wise Rate
3988600 2590 17 0.08 134750000 0.014
13461557 5773 58 0.23 121669565.217 0.12

5813280 11010 25 0.55 23040000 0.25

23263437 100 279459565.217

23.26 279.46
Margins Global Sales
(Million $) (Million $)

15000 24000 20000 19000 18000 17000 16000 15000

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1270 @ 20000

1270 @ 18000

1270@16000