4H Gross Profit projection. Many of the numbers used here were found on the 4H web site (http://www.4h-usa.org/4h/4h_stats.htm). The participation numbers are from 1997 when total participation was 6.0 million kids. Since the PR used 6.5 million kids, we can assume the 4H organization is growing. Since we want to be conservative, we will use the '97 numbers where total participation in 4H is 6.0 million.
From the web site, we learn that 3.7 million kids are in grades 4-12. We are going to disregard the little kids and the very few (.3%) people who are beyond high school. We will assume that half of the 3.7 million kids participate in the 4H Music Card fundraiser or 1,850,000 kids. We assume each kid sells 2 cards apiece for 3,700,000 cards. At $5 per card, card revenue will be $18,500,000.
Of the 3,700,000 cards, 30% or 1,100,000 are used to buy 4 CD's each. CD sales are 4,400,000 CD's producing $4,400,000 in CD gross profits.
Thus total gross profit is $22,900,000.
*****4H Gross Profit Projection Summary*****
Total participation in 4H is 6.5 million
Use '97 stats of 6.0 million
3.7 million kids participating in 4H are in grades 4-12
Assume half of this age-group sell cards (1,850,000 kids)
Assume each kid sells 2 cards or 3,700,000 cards
At $5 per card, card revenue is $18,500,000
Of the 3,700,000 cards sold, 30% (or 1,100,00) are used
Each card used buys 4 CD's
A total of 4,400,000 CD's is sold
At $1 gross profit each, CD gross profit is $4,400,000
Total gross profit is $22,900,000
Regards, Suzanne |
