Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer #4. please show work 12 + BIU GD E DE illi Hershey's chocolate factory is introducing a new chocolate and has hired you to

Answer #4. please show work image text in transcribed
12 + BIU GD E DE illi Hershey's chocolate factory is introducing a new chocolate and has hired you to conduct a financial analysis to figure how well the chocolate will do. They provided you with the information below to help you conduct your analysis. Assistant manager's salary: $2,500 cocoa butter per bar of chocolate: $1 monthly utilities: $500 milk per bar of chocolate: $0.20 Rent: $4,000 Manager's salary: $3,000 Sugar per bar of chocolate: 0.80 secret ingredient for each bar of chocolate: $1.50 Factory worker wages per bar of chocolate: $1.50 Hershey has decided to use Connecticut as a test market and the average price of a large bar of chocolate in Connecticut is $12.50. There are also 1 million bars of chocolate sold in Connecticut every month. Hershey plans to use penetration pricing and as such decides to sell this new chocolate bar for 80% of the average price of a chocolate bar sold in Connecticut They also project that they will be able to sell the equivalent of 1% of the bars of chocolate sold in Connecticut Use the numbers provided above to answer questions below. Make sure that you show all formulas and also show all your calculations since there will be points awarded for the formula and calculations. 4. A sales person from Hershey approached Walgreens and asked them to sell the Chocolate in their retail stores. Hershey offered to sell a bar of chocolate to Walgreens for $8 dollars and Walgreens will sell the chocolate in their stores for $10. If Walgreens agrees to Hershey's terms; (20 points) . What will Hershey's trade margin be? What will Hershey's trade margin % be? What will Walgreen's trade margin be? What will Walgreen's trade margin % be

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Futures Markets

Authors: Robert Kolb, James Overdahl

6th Edition

1405134038, 9781405134033

More Books

Students also viewed these Finance questions

Question

In Exercises, find the indefinite integral. Jo (2x - 9 sin x) dx

Answered: 1 week ago