Revised Lifetime Learning Gross Profits for hypothetical year 7/1/99-6/30/00.
This projection is being updated due to new information coming to light. Expectation is that 10,000 schools are going to participate. I will assume that half of the schools participate on a school-wide basis and half on a large organization basis.
The 5,000 schools participating on a school-wide basis will average 1,000 students, or 5,000,000 kids. Only half of the kids participate, and these kids sell 2 cards each (2,500,000 kids x 2 cards/kid = 5,000,000 cards). Card revenue to TSIG is $4.00 x 5,000,000 cards = $20,000,000. Thirty percent of the 5,000,000 cards will be used to sell 3 CD?s at $1.00 profit each (30% x 5,000,000 x 3 x $1.00 = $4,500,000).
Total revenue for the 5,000 schools participating on a school-wide basis is $20,000,000 + $4,500,000 = $24,500,000.
The other 5,000 schools participate on a large organization basis (i.e. the band or athletic groups). Assume the large organization is 125 people (5,000 schools x 125 people = 625,000 people). Each kid sells 3 cards each (higher sell per kid due to smaller organization results in greater perceived benefit from sales effort) which is 3 cards/kid x 625,000 kids = 1,875,000 cards. At $4.00 (4.00 x 1,875,000), that is $7,500,000 in card revenue. Thirty percent of the 1,875,000 cards will be used to sell 3 CD?s at $1.00 profit each (30% x 1,875,000 cards x 3 CD?s x $1.00 = $1,687,500.
Total revenue for the 5,000 schools participating on a large organization basis is $7,500,000 + 1,687,500 = $9,187,500.
Grand total gross profit for Lifetime Learning is $24,500,000 + $9,187,500 = $33,687,500 or $33.7 million.
Regards, Suzanne |
