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1) The case mentions a project that Barrell conducted with a Canadian Winery in 2017, which was not successful. Financial data for the project is
1) The case mentions a project that Barrell conducted with a Canadian Winery in 2017, which was not successful. Financial data for the project is below (in USD$000's). This data only contains costs that are directly attributable to the project, from the perspective of Barrell. Sales COGS Gross Profit Selling & Admin Costs Income from Segment 500 100 400 350 50 Please answer the following questions: a) Why would this project have been considered a flop if the Income from Segment was positive? (4 marks) b) Suggest one financial-related change that the company should make if they pursue the VeloVelo project, in partnership with a French winery. Support your answer with course concepts and calculations, such as contribution margin and BEP. (6 marks)
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