Biovail Case Study

Q1.

|CALCULATION FOR NO DRUMS REQUIRED |
|ONE GALLON= |3785.4CC |
|ONE DRUM CAPACITY =64 GALON IN CC |242265.6 |
|SALE PRICE OF ONE TABLET= |2.83 $ |
|TABLET PRICE LESS DISTRIBUTO MARGIN= |1.84$ |
|TABLET PRICE MINUS WHOLSALER MARK UP |0.368 |
|NO OF TABLETS THAT CAN BE PUT IN ONE DRUM= |161510 |
|NO OF TABLETS FOR 10M US$ |261096601 |
|TRUCK CAPACITY IN CC= |191250000 |
|NO OF DRUM REQUIRED= |161.659715 |
|NO OF DRUMS THAT CAN BE PUT IN TRUCK |789 |
|NO OF TRUCKS REQUIRED FOR TABLETS WORTH 10 MUSD |1 |
| | |

Q2.
Response:
Two Possible FOB Contracts 1. FOB Factory or shipping point. The revenue will be