As a purchasing agent you are preparing for negotiations. Your average volume of crackers is 4200 cases per month. December volume peaks at 7000 cases. Your store offers 3 types of crackers. 40%of crackers that your organization sells contains sesame seeds.

The high-volume production line operates as a cycle of 3 cases per minute. The initial quote you given for the estimated volume of $34.50/case. The price is slightly higher than the past price,you need to develop a should cost price estimate for the crakers. The primary ingredients for crakers are: flour sells for $18.95 for a 50 pound bag. Due to hight volume, you believe that better price will be if you order flour by truck load, which hold 48000 pounds of flour. Sunflower oil is currently $1512.60 per metric ton. The best estimates suggest that one metric ton is 280.90 gallons of sunflower or canola oil. White cane sugar is trading for $0.1821/pound. A 50 pounds bag is $43.61., which represents about 70 per cent of price. Salt price$3.79 for a 50 pounds bag. Sesame seeds $39.95 for 30 pounds. There are 48 teaspoons in a cup. One pound is equivalent to 2 cups of water, 2 cups of oil, 2 cups of sugar, 2 cups of salt, 4 cups of flour. Each box of crakers containes 4.4 ounces of crackers. On the internet similar recipe for crackers which containes 3 cups of flour, 1/4 cups of sugar, 3/4 teaspoon of salt, 1/3 cups of oil, 1 cup oof water. The ingredients for sesame seed crackers are the same with 1/2 teaspoon of sesame seeds. The recipe makes 1.55 pounds of crackers. In addition, it takes 1.0341 pounds of ingredients to make one pound of crackers. You estimate that the corrugated carton used to pack 48 paper box containers would cost $433/1000 cases. Paper box cost $206.40/1000 boxes. The crackers in each box are wrapped in 8" plastic film, which is cut at 6" wide then heat sealed in the production line. The plastic film costs $18.75 for 8" by 2000' roll. Calculate direct material, direct labor, factory overhead, cost of goods sold, operating expenses, operating profit, should cost price.