Maru Case - ExcelPage2

Little Leaguers
Contact Cost
Elite
Ballplayers
(Print Ad)
Summer
Sluggers
Elite
Ballplayers
(Party)
1,000
1,500
300
12,500
8.0%
15.0%
0.5%
25.0%
Acquisition Cost
10,000
10,000
60,000
50,000
Workers Needed
Worker Labor Cost
1,500
1,500
1,500
1,500
Instructors Needed
Instructor Hourly Labor Cos
3,000
N/A
4,500
4,500
Total Cost Per Hour
6,000
1,500
6,000
6,000
Hourly Price Charged
6,500
3,000
7,500
7,500
Hourly Margin
500
1,500
1,500
1,500
Hourly Margin %
8.33
100.00
25.00
25.00
10.0
4.0
20.0
20.0
Annual Margin
5,000
6,000
30,000
30,000
Retention Rate
75.0%
50.0%
60.0%
60.0%
Interest Rate
10.0%
Response Rate
Annual Hours
Entertainment
Seekers
50
2.5%
2,000
Year 1
Year 2
Little Leaguers
Hourly Revenues
6,500
4,875
Hourly Costs
6,000
4,500
500
325
10
10
5,000
3,250
100.0%
65.0%
7,500
Annual Profit
-2,500.00
3,250.00
4,000
NPV of Annual Profit
-2,500.00
2,954.55
1,000
Cumulative Profit to Date
-2,500.00
750.00
33.33
NPV of Cumulative Profit to Date
-2,500.00
454.55
2
1,500
0
N/A
3,000
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Customer Acquisition Cost
1.5
1,500
Year 1
Year 2
Summer Sluggers
35.0%
Hourly Revenues
3,000.00
1,500.00
Hourly Costs
1,500.00
750.00
Hourly Margin
1,500.00
750.00
6,000.00
3,000.00
Survival Rate
100.0%
50.0%
10,000
Annual Profit
-4,000.00
3,000.00
-4,000.00
2,727.27
-4,000.00
-1,000.00
-4,000.00
-1,272.73
# of Annual Hours
Annual Margin
Year 1
Year 2
Elite Ballplayers(Party)
Hourly Revenues
7,500
5,250
Hourly Costs
6,000
4,500
Hourly Margin
1,500
750
20
20
Annual Margin
30,000
15,000
Survival Rate
100.0%
60.0%
50,000
Annual Profit
-20,000.00
15,000.00
-20,000.00
13,636.36
-20,000.00
-5,000.00
-20,000.00
-6,363.64
# of Annual Hours
Year 1
Year 2
Elite Ballplayers (Print Ad)

Hourly Revenues
7,500.00
4,500.00
Hourly Costs
6,000.00
3,600.00
Hourly Margin
1,500.00
900.00
20.00
20.00
30,000.00
18,000.00
1.00
0.60
60,000.00
0.00
Annual Profit
-30,000.00
18,000.00
-30,000.00
16,363.64
-30,000.00
-12,000.00
-30,000.00
-13,636.36
# of Annual Hours
Annual Margin
Survival Rate
Year 1
Year 2
Entertainment Seekers
Hourly Revenues
4,000
1,400
Hourly Costs
3,000
1,050
Hourly Margin
1,000
350
1.5
1.5
1,500
525
100.0%
35.0%
2,000
Annual Profit
-500.00
525.00
-500.00
477.27
-500.00
25.00
-500.00
-22.73
# of Annual Hours
Annual Margin
Survival Rate
Year 3
Year 4
Year 5
Year 6
Year 7
3,656.25
2,742.19
2,056.64
1,542.48
1,156.86
3,375.00
2,531.25
1,898.44
1,423.83
1,067.87
211
137
89
58
38
10
10
10
10
10
2,112.50
1,373.13
892.53
580.15
377.09
65.0%
65.0%
65.0%
65.0%
65.0%
2,112.50
1,373.13
892.53
580.15
377.09
1,745.87
1,031.65
609.61
360.22
212.86
2,862.50
4,235.63
5,128.16
5,708.30
6,085.40
2,200.41
3,232.06
3,841.67
4,201.90
4,414.76
Year 3
Year 4
Year 5
Year 6
Year 7
750.00
375.00
187.50
93.75
46.88
375.00
187.50
93.75
46.88
23.44
375.00
187.50
93.75
46.88
23.44
1,500.00
750.00
375.00
187.50
93.75
50.0%
50.0%
50.0%
50.0%
50.0%
1,500.00
750.00
375.00
187.50
93.75
1,239.67
563.49
256.13
116.42
52.92
500.00
1,250.00
1,625.00
1,812.50
1,906.25
-33.06
530.43
786.56
902.98
955.90
Year 3
Year 4
Year 5
Year 6
Year 7
3,938
2,953
2,215
1,661
1,246
3,375
2,531
1,898
1,424
1,068
563
422
316
237
178
20
20
20
20
20
11,250
8,438
6,328
4,746
3,560
60.0%
60.0%
60.0%
60.0%
60.0%
11,250.00
8,437.50
6,328.13
4,746.09
3,559.57
9,297.52
6,339.22
4,322.19
2,946.95
2,009.28
6,250.00
14,687.50
21,015.63
25,761.72
29,321.29
2,933.88
9,273.10
13,595.30
16,542.25
18,551.53
Year 3
Year 4
Year 5
Year 6
Year 7
2,700.00
1,620.00
972.00
583.20
349.92
2,160.00
1,296.00
777.60
466.56
279.94
540.00
324.00
194.40
116.64
69.98
20.00
20.00
20.00
20.00
20.00
10,800.00
6,480.00
3,888.00
2,332.80
1,399.68
0.60
0.60
0.60
0.60
0.60
0.00
0.00
0.00
0.00
0.00
10,800.00
6,480.00
3,888.00
2,332.80
1,399.68
8,925.62
4,868.52
2,655.56
1,448.49
790.08
-1,200.00
5,280.00
9,168.00
11,500.80
12,900.48
-4,710.74
157.78
2,813.33
4,261.82
5,051.90
Year 3
Year 4
Year 5
490
172
368
129
123
43
1.5
1.5
184
64
35.0%
35.0%
183.75
64.31
151.86
48.32
208.75
273.06
129.13
177.45
Year 6
Year 7
10
11
10
11
12
Year 8
Year 9
Year 10
Year 11
Year 12
867.65
650.73
488.05
366.04
274.53
800.90
600.68
450.51
337.88
253.41
25
16
10
10
10
10
10
10
245.11
159.32
103.56
67.31
43.75
65.0%
65.0%
65.0%
65.0%
65.0%
245.11
159.32
103.56
67.31
43.75
125.78
74.33
43.92
25.95
15.34
6,330.51
6,489.83
6,593.39
6,660.70
6,704.46
4,540.54
4,614.86
4,658.78
4,684.74
4,700.07
Year 10
Year 11
Year 12
Year 8
Year 9
23.44
11.72
11.72
5.86
11.72
5.86
46.88
23.44
50.0%
50.0%
46.88
23.44
24.05
10.93
1,953.13
1,976.56
979.95
990.89
Year 8
Year 9
Year 10
Year 11
Year 12
934
701
526
394
296
801
601
451
338
253
133
100
75
56
42
20
20
20
20
20
2,670
2,002
1,502
1,126
845
60.0%
60.0%
60.0%
60.0%
60.0%
2,669.68
2,002.26
1,501.69
1,126.27
844.70
1,369.97
934.07
636.86
434.23
296.06
31,990.97
33,993.23
35,494.92
36,621.19
37,465.89
19,921.50
20,855.57
21,492.43
21,926.66
22,222.72
Year 8
Year 9
Year 10
Year 11
Year 12
209.95
125.97
75.58
45.35
27.21
167.96
100.78
60.47
36.28
21.77
41.99
25.19
15.12
9.07
5.44
20.00
20.00
20.00
20.00
20.00
839.81
503.88
302.33
181.40
108.84
0.60
0.60
0.60
0.60
0.60
0.00
0.00
0.00
0.00
0.00
839.81
503.88
302.33
181.40
108.84
430.95
235.07
128.22
69.94
38.15
13,740.29
14,244.17
14,546.50
14,727.90
14,836.74
5,482.85
5,717.92
5,846.14
5,916.08
5,954.22
Year 8
Year 9
Year
Year
Year
12
13
14
15
16
13
14
15
16
17
Year 13
Year 14
Year 15
Year 16
205.90
154.42
115.82
190.06
142.54
106.91
3.28
2.46
1.85
10
10
10
32.82
24.61
18.46
75.0%
75.0%
75.0%
32.82
24.61
18.46
10.46
7.13
4.86
6,737.27
6,761.88
6,780.34
4,710.53
4,717.66
4,722.52
Year 13
Year 14
Year 15
Year 16
Year 17
Year 17
Year 13
Year 14
Year 15
Year 16
Year 17
Year
Year
Year
Year
Year
17
18
19
20
21
18
19
20
21
22
Year 18
Year 18
Year 19
Year 19
Year 20
Year 20
Year 21
Year 21
Year 22
Year 22
Year 18
Year 19
Year 20
Year 21
Year 22
Year
Year
Year
Year
Year
22
23
Year 23
Year 23
Year 23
Year
Contact Cost
Response Rate %
Acquisition Cost
1,000
10.0%
10,000
1,500
15.0%
10,000
Elite Ballplayers
(Print Ad)
300
0.5%
60,000
Workers Needed
Worker Labor Cost
Instructors Needed
Instructor Hourly Labor Cost
Total Cost Per Hour
2
1,500
1
3,000
6,000
1
1,500
0
N/A
1,500
1
1,500
1
4,500
6,000

Hourly Margin
Hourly Margin %
Annual Hours
Annual Margin
6,500
500
8.3%
10.0
5,000
3,000
1,500
100.0%
4.0
6,000
7,500
1,500
25.0%
20.0
30,000
Retention Rate
Interest Rate
75.0%
10.0%
50.0%
60.0%
Little Leaguers Summer Sluggers
Elite Ballplayers
(Party)
12,500
50
25.0%
2.5%
50,000
2,000
1
1,500
1
4,500
6,000
2
1,500
0
N/A
3,000
7,500
1,500
25.0%
20.0
30,000
4,000
1,000
33.3%
1.5
1,500
60.0%
35.0%
Little Leaguers
Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
Cumulative Profit
NPV of Cumulative Profit
Year 1
6500
6000
500
10
5000
1
10000
-5000
-5000
-5000
-5000
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
4875
3656.25 2742.188 2056.641 1542.48 1156.86 867.6453 650.7339
4500
3375
2531.25 1898.438 1423.828 1067.871 800.9033 600.6775
375
281.25 210.9375 158.2031 118.6523 88.98926 66.74194 50.05646
10
10
10
10
10
10
10
10
3750
2812.5 2109.375 1582.031 1186.523 889.8926 667.4194 500.5646
0.75
0.75
0.75
0.75
0.75
0.75
0.75
0.75
0
0
0
0
0
0
0
0
3750
2812.5 2109.375 1582.031 1186.523 889.8926 667.4194 500.5646
3409.091 2324.38 1584.805 1080.549 736.7377 502.3212 342.4917 233.5171
-1250
1562.5 3671.875 5253.906 6440.43 7330.322 7997.742 8498.306
-1590.909 733.4711 2318.276 3398.824 4135.562 4637.883 4980.375 5213.892
Year 1
3000
1500
1500
4
6000
1
10000
-4000
-4000
-4000
-4000
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
1500
750
375
187.5
93.75
46.875
750
375
187.5
93.75
46.875 23.4375
750
375
187.5
93.75
46.875 23.4375
4
4
4
4
4
4
3000
1500
750
375
187.5
93.75
0.5
0.5
0.5
0.5
0.5
0.5
0
0
0
0
0
0
3000
1500
750
375
187.5
93.75
2727.273 1239.669 563.4861 256.13 116.4227 52.91943
-1000
500
1250
1625
1812.5 1906.25
-1272.727 -33.05785 530.4282 786.5583 902.981 955.9005
Year 10
488.0505
450.5081
37.54234
10
375.4234
0.75
0
375.4234
159.2162
8873.73
5373.108
Year 11
366.0378
337.8811
28.15676
10
281.5676
0.75
0
281.5676
108.5565
9155.297
5481.665
Summer Sluggers
Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit

Year 1
Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
7500
6000
1500
20
30000
1
60000
-30000
-30000
Year 2
Year 3
4500
2700
3600
2160
900
540
20
20
18000
10800
0.6
0.6
0
0
18000
10800
16363.64 8925.62
Year 4
Year 5
Year 6
1620
972
583.2
1296
777.6
466.56
324
194.4
116.64
20
20
20
6480
3888
2332.8
0.6
0.6
0.6
0
0
0
6480
3888
2332.8
4868.52 2655.556 1448.485
Year 7
Year 8
Year 9
Year 10
Year 11
349.92
279.936
69.984
20
1399.68
0.6
0
1399.68
790.0829
209.952
167.9616
41.9904
20
839.808
0.6
0
839.808
430.9543
125.9712
100.777
25.19424
20
503.8848
0.6
0
503.8848
235.066
75.58272
60.46618
15.11654
20
302.3309
0.6
0
302.3309
128.2178
45.34963
36.27971
9.069926
20
181.3985
0.6
0
181.3985
69.93699
Year 12
274.5284
253.4108
21.11757
10
211.1757
0.75
0
211.1757
74.01579
9366.473
5555.68

-30000
-12000
-1200
5280
9168
11500.8 12900.48 13740.29 14244.17 14546.5 14727.9
-30000 -13636.36 -4710.744 157.7761 2813.332 4261.818 5051.901 5482.855 5717.921 5846.139 5916.076
Elite Ballplayers (Party)

Year 1
Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
Year 2
Year 3
Year 4
Year 6
7500
4500
2700
1620
972
583.2
6000
3600
2160
1296
777.6
466.56
1500
900
540
324
194.4
116.64
20
20
20
20
20
20
30000
18000
10800
6480
3888
2332.8
1
0.6
0.6
0.6
0.6
0.6
50000
0
0
0
0
0
-20000
18000
10800
6480
3888
2332.8
-20000 16363.64 8925.62 4868.52 2655.556 1448.485
-20000
-2000
8800
15280
19168
21500.8
-20000 -3636.364 5289.256 10157.78 12813.33 14261.82
Year 1
Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
Year 5
4000
3000
1000
1.5
1500
1
2000
-500
-500
-500
-500
Year 2
Year 3
Year 4
1400
490
171.5
1050
367.5
128.625
350
122.5
42.875
1.5
1.5
1.5
525
183.75 64.3125
0.35
0.35
0.35
0
0
0
525
183.75 64.3125
477.2727 151.8595 48.31893
25
208.75 273.0625
-22.72727 129.1322 177.4512
Year 7
Year 8
Year 9
Year 10
Year 11
349.92
279.936
69.984
20
1399.68
0.6
0
1399.68
790.0829
22900.48
15051.9
209.952
167.9616
41.9904
20
839.808
0.6
0
839.808
430.9543
23740.29
15482.85
125.9712
100.777
25.19424
20
503.8848
0.6
0
503.8848
235.066
24244.17
15717.92
75.58272
60.46618
15.11654
20
302.3309
0.6
0
302.3309
128.2178
24546.5
15846.14
45.34963
36.27971
9.069926
20
181.3985
0.6
0
181.3985
69.93699
24727.9
15916.08
Elite Ballplayers Elite Ballplayers Entertainment

(Print Ad)
(Party)
Seekers
300
12,500
50
0.5%
25.0%
2.5%
60,000
50,000
2,000
Contact Cost
Response Rate %
Acquisition Cost
1,000
10.0%
10,000
1,500
15.0%
10,000
Workers Needed
Worker Labor Cost
Instructors Needed
Total Cost Per Hour
2
1,500
1
3,000
6,000
1
1,500
0
N/A
1,500
1
1,500
1
4,500
6,000
1
1,500
1
4,500
6,000
2
1,500
0
N/A
3,000

Hourly Margin
Hourly Margin %
Annual Hours
Annual Margin
6,500
500
8.3%
10.0
5,000
3,000
1,500
100.0%
4.0
6,000
7,500
1,500
25.0%
20.0
30,000
7,500
1,500
25.0%
20.0
30,000
4,000
1,000
33.3%
1.5
1,500
Retention Rate
Interest Rate
75.0%
10.0%
50.0%
60.0%
60.0%
35.0%
Question 1
Contact Cost
Response Rate %
Acquisition Cost
1,000
10.0%
10,000
1,500
15.0%
10,000

(Print Ad)
(Party)
Seekers
300
12,500
50
0.5%
25.0%
2.5%
60,000
50,000
2,000
Question 2 & 3
Break Even
Break Even NPV
3rd
3rd
3rd
4th

(Print Ad)
(Party)
Seekers
4th
3rd
2nd
4th
3rd
3rd
Lifetime Value of Customer
5555.68
955.90
5916.08
15916.08
177.45
Yes, MBC should throw Gala Event

When MBC throws the gala event it achieves Break Even in the 3rd year itself. Hence NPC should throw Gala Event
Question 4
Break Even NPV
Lifetime Value of Customer
3rd
5555.68
4th
955.90

(Print Ad)
(Party)
Seekers
4th
3rd
3rd
5916.08
15916.08
177.45
Elite Ballplayers through the Gala Event(Party) is the most attractive customer segment
Break Even is achieved in the 3rd year itself plus it has the highest customer lifetime value
Question 5
Contact Cost
Response Rate %
Acquisition Cost
Little Leaguers
Minato ward
1,000
10.0%
10,000
Little Leaguers
Chiyoda ward
600
8.0%
7,500
Workers Needed
Worker Labor Cost
Instructors Needed
Total Cost Per Hour
2
1,500
1
3,000
6,000
2
1,500
1
3,000
6,000

Hourly Margin
Hourly Margin %
Annual Hours
Annual Margin
6,500
500
8.3%
10.0
5,000
6,500
500
8.3%
10.0
5,000
Retention Rate
Interest Rate
75.0%
10.0%
65.0%
10.0%
Year 1
6500
6000
500
10
5000
1
10000
-5000
-5000
-5000
-5000
Year 2
4875
4500
375
10
3750
0.75
0
3750
3409.0909090909
-1250
-1590.9090909091
Year 3
3656.25
3375
281.25
10
2812.5
0.75
0
2812.5
2324.38017
1562.5
733.471074
Year 1
6500
6000
500
Year 2
4875
4500
325
Year 3
3656.25
3375
211.25
Little Leaguers(Minato)
Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
Cumulative Profit
NPV of Cumulative Profit
Year 4
2742.1875
2531.25
210.9375
10
2109.375
0.75
0
2109.375
1584.8047
3671.875
2318.2757
Year 5
2056.641
1898.438
158.2031
10
1582.031
0.75
0
1582.031
1080.549
5253.906
3398.824
Year 6
1542.48
1423.828
118.6523
10
1186.523
0.75
0
1186.523
736.7377
6440.43
4135.562
Year 7
1156.86
1067.871
88.98926
10
889.8926
0.75
0
889.8926
502.3212
7330.322
4637.883
Year 8
867.6453
800.9033
66.74194
10
667.4194
0.75
0
667.4194
342.4917
7997.742
4980.375
Year 9
650.7339
600.6775
50.05646
10
500.5646
0.75
0
500.5646
233.5171
8498.306
5213.892
Little Leaguers(Chiyoda)
Hourly Revenues
Hourly Costs
Hourly Margin
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
2742.1875 2056.641 1542.48 1156.86 867.6453 650.7339
2531.25 1898.438 1423.828 1067.871 800.9033 600.6775
137.3125 89.25313 58.01453 37.70945 24.51114 15.93224
Year 10
488.0505
450.5081
37.54234
10
375.4234
0.75
0
375.4234
159.2162
8873.73
5373.108
Year 11
366.0378
337.8811
28.15676
10
281.5676
0.75
0
281.5676
108.5565
9155.297
5481.665
Year 12
274.5284
253.4108
21.11757
10
211.1757
0.75
0
211.1757
74.01579
9366.473
5555.68
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
Minato
Chiyoda
10
5000
1
7500
-2500
-2500
-2500
-2500
10
3250
0.65
0
3250
2954.5454545455
750
454.55
10
2112.5
0.65
0
2112.5
1745.86777
2862.5
2200.41
10
1373.125
0.65
0
1373.125
1031.6491
4235.625
3232.06
Customer
Lifetime
Retention
Acquisition cost Break Even Yr(NPV) Value
Rate
5555.68
(12th yr)
10,000.00 3rd
75%
4614.86
(9th yr)
7,500.00 2nd
65%
10
892.5313
0.65
0
892.5313
609.6109
5128.156
3841.67
10
580.1453
0.65
0
580.1453
360.2246
5708.302
4201.90
10
377.0945
0.65
0
377.0945
212.86
6085.396
4414.76
10
245.1114
0.65
0
245.1114
125.7809
6330.507
4540.54
10
159.3224
0.65
0
159.3224
74.32508
6489.83
4614.86
Hence Chiyoda Option is better
Question 6
Contact Cost
Response Rate
Acquisition Cost
Elite Ballplayers Elite Ballplayers

(Print Ad)
(Party)
300
12,500
0.5%
25.0%
60,000
50,000
Workers Needed
Worker Labor Cost
Instructors Needed
Total Cost Per Hour
Hourly Margin
Hourly Margin %
Annual Hours
Annual Margin
Retention Rate
Interest Rate
1
1,500
1
4,500
6,000
1
1,500
1
4,500
6,000
7,000
1,000
16.67
20.0
20,000
7,000
1,000
16.67
20.0
20,000
75.0%
10%
75.0%
Elite Ballplayers (Party) before using brother's advice

Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Annual Margin
Survival Rate
Annual Profit
Year 1
7500
6000
1500
20
30000
1
50000
-20000
-20000
-20000
-20000
Year 2
Year 3
Year 4
Year 5
4500
2700
1620
972
3600
2160
1296
777.6
900
540
324
194.4
20
20
20
20
18000
10800
6480
3888
0.6
0.6
0.6
0.6
0
0
0
0
18000
10800
6480
3888
16363.636363636 8925.62 4868.52 2655.556
-2000
8800
15280
19168
-3636.363636364 5289.256 10157.78 12813.33
Elite Ballplayers (Party) after using brother's advice

Hourly Revenues
Hourly Costs
Hourly Margin
# of Annual Hours
Year 1
7500
6000
1500
20
Year 2
5250
4500
750
20
Year 3
3937.5
3375
562.5
20
Year 4
Year 5
2953.125 2214.844
2531.25 1898.438
421.875 316.4063
20
20
Annual Margin
Survival Rate
Annual Profit
30000
1
50000
-20000
-20000
-20000
-20000
15000
11250
8437.5
0.6
0.6
0.6
0
0
0
15000
11250
8437.5
13636.363636364 9297.521 6339.219
-5000
6250
14687.5
-6363.636363636 2933.884 9273.103
6328.125
0.6
0
6328.125
4322.195
21015.63
13595.3
Before using
After using
brother's advice brother's advice
Break Even Yr (NPV)
Customer Lifetime Value
3rd
3rd
Hence Clearly MBC should im
Year 6
583.2
466.56
116.64
20
2332.8
0.6
0
2332.8
1448.485
21500.8
14261.82
Year 7
349.92
279.936
69.984
20
1399.68
0.6
0
1399.68
790.0829
22900.48
15051.9
Year 8
209.952
167.9616
41.9904
20
839.808
0.6
0
839.808
430.9543
23740.29
15482.85
Year 9
125.9712
100.777
25.19424
20
503.8848
0.6
0
503.8848
235.066
24244.17
15717.92
Year 10
75.58272
60.46618
15.11654
20
302.3309
0.6
0
302.3309
128.2178
24546.5
15846.14
Year 11
45.34963
36.27971
9.069926
20
181.3985
0.6
0
181.3985
69.93699
24727.9
15916.08
Year 6
Year 7
Year 8
Year 9
1661.133 1245.85 934.3872 700.7904
1423.828 1067.871 800.9033 600.6775
237.3047 177.9785 133.4839 100.1129
20
20
20
20
Year 10
525.5928
450.5081
75.08469
20
Year 11
394.1946
337.8811
56.31351
20
4746.094
0.6
0
4746.094
2946.951
25761.72
16542.25
3559.57
0.6
0
3559.57
2009.285
29321.29
18551.53
2669.678
0.6
0
2669.678
1369.967
31990.97
19921.5
2002.258
0.6
0
2002.258
934.0683
33993.23
20855.57
1501.694
0.6
0
1501.694
636.8647
35494.92
21492.43
early MBC should implement Maru's brother's Advice
1126.27
0.6
0
1126.27
434.226
36621.19
21926.66
Question 7
lite Ballplayers (Party)
Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Hourly Revenues7500
4500
2700
1620
972
583.2
Hourly Costs 6000
3600
2160
1296
777.6
466.56
Hourly Margin 1500
900
540
324
194.4
116.64
# of Annual Hours20
20
20
20
20
20
Annual Margin 30000
18000
10800
6480
3888
2332.8
Survival Rate 1
0.6
0.6
0.6
0.6
0.6
Customer Acquisition
50000
Cost
0
0
0
0
0
Annual Profit -20000
18000
10800
6480
3888
2332.8
-20000 16363.64 8925.62 4868.52 2655.556 1448.485
Cumulative Profit to-20000
Date
-2000
8800
15280
19168
21500.8
PV of Cumulative Profit
-20000
to Date-3636.364 5289.256 10157.78 12813.33 14261.82
Year 7
Year 8
349.92
279.936
69.984
20
1399.68
0.6
0
1399.68
790.0829
22900.48
15051.9
209.952
167.9616
41.9904
20
839.808
0.6
0
839.808
430.9543
23740.29
15482.85
Elite Ballplayers (Party) after implementing the changes

Year 1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Hourly Re
7500
5550
4107 3039.18 2248.993 1664.255 1231.549 911.346
Hourly Co
6000
3600
2160
1296
777.6
466.56 279.936 167.9616
Hourly Mar
1500
1950
1947 1743.18 1471.393 1197.695 951.6127 743.3844
# of Annua
20
20
20
20
20
20
20
20
Annual Ma
30000
39000
38940 34863.6 29427.86 23953.9 19032.25 14867.69
Survival R
1
0.6
0.6
0.6
0.6
0.6
0.6
0.6
Customer 77586.21
0
0
0
0
0
0
0
Annual Pro-47586.21
39000
38940 34863.6 29427.86 23953.9 19032.25 14867.69
NPV of Ann
-47586.21 35454.55 32181.82 26193.54 20099.63 14873.49 10743.21 7629.475
Cumulative-47586.21 -8586.207 30353.79 65217.39 94645.26 118599.2 137631.4 152499.1
NPV of Cum
-47586.21 -12131.66 20050.16 46243.7 66343.32 81216.81 91960.02 99589.5
Before
After
impleme impleme
nting
nting
changes changes
Break Even Yr (NPV)
3rd
3rd
116575.8 15916.07
Customer Lifetime9Value
(20th
(11th
Year)
Year)
In both the cases Break Even is achieved in the 3rd year
But the Customer Lifetime Value is higher when the changes are implemented
Hence, from long term perspective the changes SHOULD be implemented
Year 9
Year 10
Year 11
125.9712
100.777
25.19424
20
503.8848
0.6
0
503.8848
235.066
24244.17
15717.92
75.58272
60.46618
15.11654
20
302.3309
0.6
0
302.3309
128.2178
24546.5
15846.14
45.34963
36.27971
9.069926
20
181.3985
0.6
0
181.3985
69.93699
24727.9
15916.08
Year 9
Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17
674.3961 499.0531 369.2993 273.2815 202.2283 149.6489 110.7402 81.94775 60.64134
100.777 60.46618 36.27971 21.76782 13.06069 7.836416 4.70185 2.82111 1.692666
573.6191 438.5869 333.0196 251.5136 189.1676 141.8125 106.0384 79.12664 58.94867
20
20
20
20
20
20
20
20
20
11472.38 8771.738 6660.391 5030.273 3783.352 2836.25 2120.767 1582.533 1178.973
0.6
0.6
0.6
0.6
1.6
2.6
3.6
4.6
5.6
0
0
0
0
1
2
3
4
5
11472.38 8771.738 6660.391 5030.273 3782.352 2834.25 2117.767 1578.533 1173.973
5351.951 3720.073 2567.869 1763.08 1205.174 820.9814 557.6743 377.8882 255.4908
163971.5 172743.2 179403.6 184433.9 188216.2 191050.5 193168.3 194746.8 195920.8
104941.4 108661.5 111229.4 112992.5 114197.6 115018.6 115576.3 115954.2 116209.7
e implemented
plemented
Year 18 Year 19 Year 20

44.87459 33.2072 24.57333
1.0156 0.60936 0.365616
43.85899 32.59784 24.20771
20
20
20
877.1798 651.9567 484.1542
6.6
7.6
8.6
6
7
8
871.1798 644.9567 476.1542
172.3583 116.0011 77.85502
196791.9 197436.9 197913
116382
116498 116575.9

Maru Case - ExcelPage2

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Little Leaguers

Worker Labor Cost

Instructor Hourly Labor Cos

Total Cost Per Hour

Hourly Price Charged

NPV of Annual Profit

Cumulative Profit to Date

NPV of Cumulative Profit to Date

Customer Acquisition Cost

NPV of Annual Profit

Cumulative Profit to Date

NPV of Cumulative Profit to Date

Customer Acquisition Cost

NPV of Annual Profit

Cumulative Profit to Date

NPV of Cumulative Profit to Date

Elite Ballplayers (Print Ad)

NPV of Annual Profit

Cumulative Profit to Date

NPV of Cumulative Profit to Date

NPV of Annual Profit

Cumulative Profit to Date

NPV of Cumulative Profit to Date

Hourly Price Charged

Little Leaguers Summer Sluggers

Elite Ballplayers (Print Ad)

Cumulative Profit to Date

Elite Ballplayers (Party)

Little Leaguers Summer Sluggers

Elite Ballplayers Elite Ballplayers Entertainment

Hourly Price Charged

Elite Ballplayers Elite Ballplayers Entertainment

Elite Ballplayers Elite Ballplayers Entertainment

Lifetime Value of Customer

Yes, MBC should throw Gala Event

Elite Ballplayers Elite Ballplayers Entertainment

Hourly Price Charged

Hence Chiyoda Option is better

Elite Ballplayers Elite Ballplayers

Elite Ballplayers (Party) before using brother's advice

Elite Ballplayers (Party) after using brother's advice

Hence Clearly MBC should im

early MBC should implement Maru's brother's Advice

lite Ballplayers (Party)

Elite Ballplayers (Party) after implementing the changes

In both the cases Break Even is achieved in the 3rd year

Year 18 Year 19 Year 20

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