Mountain Man Brewing Company

1. What was the total beer consumption in the East Central Region in
2005? *

37191077
This is a required question
2. What is the Total Revenue from Mountain Man Lager in 2005? *

$50 mm
3. What is the % Gross Contribution Margin from Mountain Man Lager
in 2005? *

30.07 %
4. What is the Revenue per barrel of Mountain Man Lager in 2005,
assuming a production of 520,000 barrels? *

$50 mm
5. What is the contribution per barrel of Mountain Man Lager? *

$25.38

6. Chris looked at some revenue and net profit projections he had

developed to 2010 assuming that Mountain Man Lager lost 2% of its
revenue base annually Given this assumption, what is the projected
revenue from Mountain Man Lager in 2006 and 2010? *
2006-4431200 , 2010 -46524250

7. What is the projected Gross Contribution from Mountain Man

Lager in 2006? *
$30.07

8. Suppose Mountain Man Light is launched in 2006 and as suggested

in the case, suppose it causes a 5% loss of contribution from
Mountain Man Lager sales. Estimate this projected 2006 loss of
contribution. *
$7,66,184

9. Suppose Mountain Man Light is launched in 2006. What is its

expected contribution per barrel
$25.38

10. Suppose Mountain Man Light is launched in 2006. How many

barrels of Mountain Man Light need to be sold in order to recover the
loss of contribution from Mountain Man Lager?
100473
11. Suppose Mountain Man Light is launched in 2006. What is the
minimum anticipated cost of advertising Mountain Man Light. What
are the anticipated incremental SG&A costs that
will be incurred?

$9,00,000

12. Suppose Mountain Man Light is launched in 2006. How many

barrels of Mountain Man Light need to be sold in order to recover the
anticipated Advertising and incremental SG&A expenses? *
65,012

13. Suppose Mountain Man Light is launched in 2006. How many total
barrels of Mountain Man Light need to be sold in order to break-even
in the first year? *
95,200

14. What is the size of the East Central Light Beer Market in 2005,
measured in number of barrels consumed? *
18744303
15. What is the projected size of the East Central Light Beer Market
in 2006, measured in number of barrels consumed? *
19494075
16. What is the projected number of barrels of Mountain Man Light
that will be sold in 2006? *
48375

17. Based on the previous calculations, what is the probability of

Mountain Man Brewing Company breaking even in 2006, if it
launches Mountain Man Light. *