| Sample Children's Book Production Quote 2 Financial Analysis (CDN$)
Children's Book 2: softcover, full color, 32 pages
Let's say that you are interested in producing a children's book with specifications exactly like the one in our example. Based on the analysis below, we can make the following conclusions:
- For sales of 1,500 books, your total potential profit is $14,037.
- For sales of 1,000 books, your total potential profit is $6,858.
| Quantity |
|
1,000 |
1,500 |
|
% direct to consumer |
65% |
650 |
975 |
|
% to retail stores |
25% |
250 |
375 |
|
% to wholesalers |
10% |
100 |
150 |
|
|
|
|
|
| Unit cost |
|
$8.31 |
$5.81 |
|
|
|
|
|
| Suggested selling price |
|
|
|
|
Full retail (direct to consumer) |
17.95 |
17.95 |
|
% discount to retailers |
40% |
10.77 |
10.77 |
|
% discount to wholesalers |
55% |
8.08 |
8.08 |
|
|
|
|
|
| Total gross revenues |
|
15,168 |
22,752 |
|
|
|
|
|
| Total investment |
|
8,310 |
8,715 |
|
|
|
|
|
| Total profit potential |
|
6,858 |
14,037 |
|
|
|
|
|
| Return on investment |
|
83% |
161% |
|
|
|
|
|
| Breakeven quantity |
|
548 |
575 |
This analysis is for illustrative purposes only. The exact sales mix will depend on your distribution and marketing approach. Actual required discounts and terms may vary among retailers and distributors.
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