Cookie Managerial Project PDF

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Summary

Calculate total variable costs for one batch of cookies with detailed analysis...

Description

Total&Variable&Costs&for&One&Batch&of&Cookies Total&DM&Cost Ingredient 0.75&c.&flour 0.5&tsp.&baking&powder 0.5&sticks&butter 0.25&c.&sugar 1&egg&yolk 0.5&tsp.&vanilla 0.125&tsp.&almond&extract* *Indicates&IDM Total&cost&per&batch Total&cookies&made& Cost&per&cookie Cost&per&dozen

Cost $&&&&&&&&&&0.06 $&&&&&&&&&&0.01 $&&&&&&&&&&0.31 $&&&&&&&&&&0.05 $&&&&&&&&&&0.11 $&&&&&&&&&&0.01

$&&&&&&&&&&0.55 12 $&&&&&&&&&&0.05 $&&&&&&&&&&0.55

Sales&Price Total&VC Markup Sales&price Contribution&Margin& Sales Less:&VC CM CM&(%) Breakeven&Point&($) Fixed&Cost CM&Percentage Breakeven&Point&($)

Total&DL&Cost Hourly&wage&for&labor Hours&of&labor&per&batch Total&labor&cost&

$&&&&&&&&12.63 0.15 $&&&&&&&&&&1.89

Breakeven&Point&(unit&per& dozen) Fixed&cost CM&per&unit Breakeven&Point&(units)

Total&VMOH&Cost

Utilities $&&&&&&&&&&0.10 Other&indirect&materials&and&labor $&&&&&&&&&&0.15 Total&VMOH&cost $&&&&&&&&&&0.25 Total&VOpEx&Cost Sales&commission Shipping&costs Total&VOpEx&cost

$&&&&&&&&&&0.25 $&&&&&&&&&&0.10 $&&&&&&&&&&0.35

Total&Variable&costs

$&&&&&&&&&&3.04

Total&Fixed&Costs&for&One&Batch&of&Cookies Total&MOH&Cost&(per&month) Maintenance $&&&&&&&&50.00 Depreciation&-&Cooking&equipment $&&&&&&250.00

Target&Units&Needed&to& Achieve&Operating& Income&of&$10,000/mo Target&Profit Fixed&costs CM&per&unit Target&units&needed

Supervision Total&MOH&costs

$&&2,500.00 $&&2,800.00

Total&MOpEx&Cost&(per&month) Salaries

$&&2,000.00

Depreciation&-&Sales&and&marketing equipment $&&&&&&200.00 Other $&&&&&&800.00 Total&MOpEx&cost $&&3,000.00 Total&Fixed&costs

$&&5,800.00

$&&&&&&&&&&&&3.04 200% $&&&&&&&&&&&&6.09

$&&&&&&&&&&&&6.09 $&&&&&&&&&&&&3.04 $&&&&&&&&&&&&3.04 50%

$&&&&5,800.00 50% $&&11,600.00

$&&&&5,800.00 $&&&&&&&&&&&&3.04 1905.07

10,000 $&&&&5,800.00 $&&&&&&&&&&&&3.04 5189.69

Contribution&Margin&Income&Statement&

Sales&in&units Sales&revenue Less:&Variable expenses& Utilities Other&indirect materials&and&labor Sales&commission Shipping&cost Contribution&margin Less:&Fixed& expenses& Maintenance& Depreciation&-& Cooking&equipment Supervision Salaries Depreciation&-& Sales& marketing& equipment Other Operating&Income

January& February& March 2,127.00 7,176.00 1,021.00 $&12,951.30 $&43,694.66 $&&6,216.87

$&&&&&&&212.70 $&&&&&&&717.60 $&&&&&&102.10

$&&&&&&&319.05 $&&&&&&&531.75 $&&&&&&&212.70 $&11,675.10

$&& &1,076.40 $&& &1,794.00 $&&&&&&&717.60 $&39,389.06

$&&&&& &153.15 $&&&&& &255.25 $&&&&&&102.10 $&&5,604.27

$&&&&&&&&&50.00 $&&&&&&&&&50.00 $&&&&&&&&50.00

$&&&&&&&250.00 $&&&&&&&250.00 $&&&&&&250.00 $&& &2,500.00 $&& &2,500.00 $&&2,500.00 $&& &2,000.00 $&& &2,000.00 $&&2,000.00

$&&&&&&&200.00 $&&&&&&&200.00 $&&&&&&200.00 $&&&&&&&800.00 $&&&&&&&800.00 $&&&&&&800.00 $&&&5,875.10 $&33,589.06 $&&&&(195.73)

Quarter 10,324.00 $&62,862.84

$&&&1,032.40

$&&&1,548.60 $&&&2,581.00 $&&&1,032.40 $&56,668.44

$&&&&&&&150.00

$&&&&&&&750.00 $&&&7,500.00 $&&&6,000.00

$&&&&&&&600.00 $&&&2,400.00 $&39,268.44

Were&you&profitable?&i.&What&were&the&key&drivers&in&your&profitability,&or&lack&thereof start&a&new&cookie&company? For&my&company’s&performance&during&the&first&quarter&of&2020,&we&ended&with&a&net& exceeding&supply.&I&opened&my&second&store&in&the&town&next&to&mine&and&marked&up& cookies,&my&contribution&margin&ratio&was&up&50%.&When&I&opened&by&second&location baking&industry. In&February,&our&cookie&sales&spiked&by&a&5%&increase.&With&a&sales&revenue&of&$43,694 slightly&over&1,000&cookies&sold.&The&company&originally&predicted&a&steady&rise&in&reve quarters’&projection,&our&company&is&planning&to&reopen&for&take-out&in&late&May. Our&key&indicators&for&staying&competitive&in&the&industry&were&our&low&salary&expense beginning&of&the&quarter,&we&quickly&reached&our&desired&target&market&and&saw&a&retu overcome&this&obstacle&is&to&increase&our&shipping&fees&to&customers&or&ship&in&bulkier& goods.&The&company&hopes&that&by&also&heightening&our&marketing&efforts&to&promote If&I&were&to&add&any&additional&components&to&start&my&new&cookie&company,&I&would&i incorporate&a&set&of&standards&for&which&management&and&employees&may&follow&to&e company&has&been&profitable&for&the&economic&crisis&it&has&endured&and&there&is&hope&

f?&ii.&What&things&could&you&change&to make&your&company&(more?)&profitable?&b.&What&other&factors,&if

income&of&$39,268.44.&I&decided&to&expand&my&sugar&cookie&business&because&sales&were&booming&in&m my&variable&costs&by&200%&to&make&double&earnings&of&what&my&expenses&were&costing&the&company.&W &in&January,&sales&were&low&as&the&company&end ured&difficulty&in&promotional&efforts&to&give&ourselves& 4.66,&the&company&only&expensed&about&one&quarter&of&these&sales.&However,&in&March&our&sales&hit&an& enue&after&our&February&sales&boomed,&but once&COVID-19&hit,&we&were&forced&to&close&our&business&m es&for&the&few&employees&we&needed&to&hire&and&inexpensive&marketing&efforts&to&promote&our&product urn&on&the&investments&we&made.&However,&shipping&costs&were&very&costly&to&our&business&and&expens orders.&We&plan&to&expand&our&product line&to&appeal&to&a&larger&niche&of&customers&by&offering&an&ass e&these&new&products,&these&expenses&will&return&a&higher&rate&of&revenue. include&financial&projections&to&form&a&stable&foundation&for&my&company’s&performance&in&both&shortnsure&inventory&levels&are&consistent,&performance&levels&are&developing,&and&sales&are&exceeding&a&br &for&a&better&projection&in&the&coming&quarterly&reports.

f&any,&should&you&have&also&included&in&your&analysis&to&

my&small&town&of&Beverly,&MA&and&demand&was&quickly& With&a&selling&price&of&$6.09&per&batch&of&one&dozen& a&competitive&advantage&over&similar&competitors&in&the& &all-time&low&and&we&saw&a&negative&profit&with&only& id-month.&Although&these&sales&hurt&our&sales&for&first& t.&Although&this&may&have&hurt&the&company&in&the& sed&us&considerably&in&the&long-term.&One&way&to& sortment&of&cookies,&merchandise,&and&other&baked& -term&and&long-term&forecasts.&I&would&also&like&to& eakeven&point&with&our&total&costs.&Overall,&the&...