7+Budgets

Regular Ice Cap Prices Large$ 3.09 Medium $2.49 Small $1.89 New Ice Cap Prices Large $2.49 Medium $1.99 Small $1.79
 * || Q3 2008 (C $ millions) || Q3 2009 (C $ millions) || Q3 2010 (C $ millions) ||
 * Sales || $333.60 || $373.00 || $429.00 ||
 * Franchise revenues ||  ||   ||   ||
 * Rents and Royalties || 155.2 || 166.9 || 181.1 ||
 * Franchise fees || 20.2 || 23.6 || 28.1 ||
 * || 175.4 || 205.9 || 209.2 ||
 * Total Revenue || 509 || 563.6 || 638.2 ||
 * Cost of Sales || 293.1 || 327.9 || 363.6 ||
 * Operating Expenses || 56.3 || 59.1 || 65.6 ||
 * Franchise fee costs || 19.8 || 21.8 || 24.9 ||
 * General & Administrative Expenses || 30 || 35.4 || 42.3 ||
 * Equity (income) || -9.4 || -9.4 || -9.4 ||
 * Other (income), net || -0.4 || -0.7 || -1 ||
 * Total Expenses || 386.4 || 434.3 || 486 ||
 * Profit || 122.6 || 129.3 || 152.2 ||
 * Profit || 122.6 || 129.3 || 152.2 ||
 * Profit || 122.6 || 129.3 || 152.2 ||

the cost of production (after the change of production process): 65 cents **
 * the cost of production (before the change of production process): 97 cents

Profit (before the change of production process): 3.09 - 0.97 = 2.12 Profit (after the change of production process): 2.49-0.65 = 1.84

Based on our market research, the increased volume is 1.778

So the new profit is: 1.84 × 1.778 = 3.27

Profit increased by: (3.27 - 2.12) / 2.12 = 54.2%