Apply for the South Delaware Coors distributorship. Obtaining a distribution license for Coors beer will become profitable. The business problem facing this decision is whether or not becoming a Coors distributor is a feasible business plan. There are several aspects to a feasible business. To answer the business problem following research questions must be answered: what is our market’s demand for beer, how much revenue can we expect, what price should we charge, and what will the total costs be? The Manson and Associates studies chosen to answer the research questions and solve this business problem facing us are following: Table C – Coors market share estimates for 2000-2005, Table E – Beer taxes paid by wholesales in the market area for 1997-1998, Table F – Financial statements for 510 wholesalers of wine, liquor, and beer in fiscal year 1999, and Table I – Retail and wholesale prices for selected beers in the market area. The total cost for purchasing these four studies is $4,429.50.

Applying for the South Delaware Coors distributorship will be a profitable decision. In order to determine this, the studies that are purchased will be analyzed and transformed to help answer our research questions. Table E was projected to 2000 by applying the same percent change of taxes paid between 1997 and 1998 to 1999 and 2000. Taking the total number of taxes paid by all manufacturers and dividing by Delaware’s 6% beer tax projects that 5,758,222 gallons of beer will be sold in 2000. Taking this projection and multiplying it by Coors projected market share of 8.9% estimates that the demand for Coors beer in the South Delaware market area is 512,482 gallons.

To determine revenue, an analysis of Table I and Table F is necessary. From Table I we can determine that variable costs are 77% and the contribution margin per unit is 23%. Changing table I’s measurement scale, we