BUS 400 Module Six Assignment Dwight Booker 04

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Southern New Hampshire University *

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400

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Business

Date

May 10, 2024

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docx

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3

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BUS 400 Module Six Assignment 24-Month Pro Forma Previous Fiscal Year (in millions) 24-Month Projections (in millions) Sales $ 152,669 $ 198,470 Cost of goods sold $ 101,709 $ 116,964 Gross profit $ 50,960 $ 81,506 Selling expenses $ 101,709 $ 116,965.35 Administrative expenses $ included in total below $ included in total below Total operating expense $ 29,271 $ 33,661.65 Income from operations $ 21,689 $ 24,942 Other income $ 0 $ 0 Income before tax and interest $ (178) $ (151) Other expense (interest) $ 1,765 $ 2,030 Income before income tax $ 19,924 $ 22,912 Income tax expense $ (5,205) $ (4424) Net income $ 15,143 $ 19,686 Explanation of Assumptions Reading through numbers of some companies and looking at the impact of a subscription service through my various services, about 80% of consumers are more likely to be retained if offered a rewards or subscription service. Those customers will spend more on new purchases and more likely to return. Sources predicted about a 10%-20% increase in sales based off a reward system alone so I split the difference at 15% for some of the 24 month projections with a 30% projected increase in sales due to the increased customer engagement and detailed recommendations based on customer data. References CCW Digital. (2023, August 29). The rise of the subscription economy – how it will change your business, and life . https://www.customercontactweekdigital.com/customer-experience/articles/the-rise-of- the-subscription-economy-how-it-will-change-your-business-and-life Rizvi, J. (2023, September 12). The growth of subscription commerce. Forbes . https://www.forbes.com/sites/jiawertz/2022/07/15/the-growth-of-subscription- commerce/?sh=71d88272b572 Subscription eCommerce Statistics (By Revenue Drivers) . (n.d.). https://smartrr.com/blog/subscription-ecommerce-statistics
The Home Depot. (2024, January). 2023 Annual Report. The Home Depot . Retrieved April 12, 2024, from https://ir.homedepot.com/~/media/Files/H/HomeDepot-IR/2024/2023%20Annual %20Report%20-%20Combined.pdf
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