Robert,
You bet your boots I would. Lets take the numbers from the bottom end and see where it leads.
Assumptions:
Card profit after all expenses---------$2.00
CD profit------------------------------$1.00
Kodak profit/card use(unknown assume)--$0.75
50,000,000 students at 75% MusicCard or 37,500,000 cards
average one CD/card/mo
50,000,000 students at 15% PhotoCard or 7,500,000 cards
average use---one half/mo
Assume 8 months even sales/mo--The drive will probably be impacted earlier in the year
4,687,500 MC/mo sold and one CD--$9,375,000 + $4,687,500
4,687,500 $9,375,000 + $9,375,000
4,687,000 $9,375,000 + $14,062,000
4,687,000 $9,375,000 + $18,749,000
4,687,000 $9,375,000 + $23,436,000
4,687,000 $9,375,000 + $28,123,000
4,687,000 $9,375,000 + $32,810,000
4,687,000 $9,375,000 + $37,497,000
$37,497,000
$37,497,000
$37,497,000
$37,497,000
TOTAL $75,000,000 +$318,727,000
937,500 PC/mo and 1/2 use $1,875,000 + $ 703,125
937,500 $1,875,000 + $ 1,406,250
937,500 $1,875,000 + $ 2,109,375
937,500 $1,875,000 + $ 2,812,500
937,500 $1,875,000 + $ 3,515,625
937,500 $1,875,000 + $ 4,218,750
937,500 $1,875,000 + $ 4,921,875
937,500 $1,875,000 + $ 5,625,000
$ 5,625,000
$ 5,625,000
$ 5,625,000
$ 5,625,000
TOTAL $15,000,000 + $47,812,500
GRAND TOTAL----$456,539,500 profit for one year
Take the assumptions and reduce them by even 50% and the numbers still boggle the mind. This deal has the potential to set the marketplace on it's ear once it ramps up. |
