can you try this again please? thank you
Mini-Case 5-42 USING ABC TOR ACTIVITY-BASED MANAGEMENT (ABM). Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vice president of product development Mark has asked Jenny with analyzing the different channels used to market its Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/ABM approach to analyzing the operations at General Milla. Currently, General Mills charged the prices and provided the same promotion--33 per case-toite customers, whether the customer was in the grocery channel food purchased for later.com pinnot preparation at himmel or the food service outside of home, immediate consumption channel. Jey quickly noticed there were two regnests within food service destination yogurt shops or restaurant and impulse locations, located in business Cafeteria and on wchool campuses and military bases. She also noticed that tale dollars for frozen yogurt products were relatively constant, but profits were declining Jenny wed that destination your shops might be more profitable than impulse location, but the company didn't have the information about profit differences to make changes. The case sades data and income statements for last year, by segment looked lie this Galgory impuse Loohon Total Sales in cases 1.200.000 300,000 1.500,000 Sales revenue $23.800.000 55.870.000 129.900.000 Les Promotions 3.600.00 Net 20.200.000 6,070.000 21.350.000 Cost of goods sold 13.300.000 Gross margin 40,000 1,620.000 2.100.000 Lesserchandising 1.300.000 345,000 1.725.000 Les Selbing general and admin.penses MILO 227.000 1.100 000 Nel con S057.009 1.038.000 S. Additional cost data: Cost of goods sold includes $14.250.000 for ingredients, pedaging, and songs, and $3,000,000 for picking, packing and shipping. The product is the same acros segments no cout to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Tuli pailets cost $75 to pick and shop, where individual orders cost $2.25 per case. There are 75 cases in a pellet, with pallet andre unge by segment shown here Segment Impulse Location Yogurt Shops Total Cases in full pallets 60,000 240,000 300,000 Individual cases 1.140.000 60.000 1.200.000 Total cases 1,200,000 300,000 1 500.000 Sales and merchandising kits sell for $500 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general, and administration, costs were allocated to products based on gross sales dollars. Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products. Jenny found when selling general, and administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185,000 to $3,900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other? 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case net income? 3. Based on your analysis in requirement 2. what changes should General Mills make? Mini-Case 5-42 USING ABC TOR ACTIVITY-BASED MANAGEMENT (ABM). Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vice president of product development Mark has asked Jenny with analyzing the different channels used to market its Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/ABM approach to analyzing the operations at General Milla. Currently, General Mills charged the prices and provided the same promotion--33 per case-toite customers, whether the customer was in the grocery channel food purchased for later.com pinnot preparation at himmel or the food service outside of home, immediate consumption channel. Jey quickly noticed there were two regnests within food service destination yogurt shops or restaurant and impulse locations, located in business Cafeteria and on wchool campuses and military bases. She also noticed that tale dollars for frozen yogurt products were relatively constant, but profits were declining Jenny wed that destination your shops might be more profitable than impulse location, but the company didn't have the information about profit differences to make changes. The case sades data and income statements for last year, by segment looked lie this Galgory impuse Loohon Total Sales in cases 1.200.000 300,000 1.500,000 Sales revenue $23.800.000 55.870.000 129.900.000 Les Promotions 3.600.00 Net 20.200.000 6,070.000 21.350.000 Cost of goods sold 13.300.000 Gross margin 40,000 1,620.000 2.100.000 Lesserchandising 1.300.000 345,000 1.725.000 Les Selbing general and admin.penses MILO 227.000 1.100 000 Nel con S057.009 1.038.000 S. Additional cost data: Cost of goods sold includes $14.250.000 for ingredients, pedaging, and songs, and $3,000,000 for picking, packing and shipping. The product is the same acros segments no cout to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Tuli pailets cost $75 to pick and shop, where individual orders cost $2.25 per case. There are 75 cases in a pellet, with pallet andre unge by segment shown here Segment Impulse Location Yogurt Shops Total Cases in full pallets 60,000 240,000 300,000 Individual cases 1.140.000 60.000 1.200.000 Total cases 1,200,000 300,000 1 500.000 Sales and merchandising kits sell for $500 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general, and administration, costs were allocated to products based on gross sales dollars. Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products. Jenny found when selling general, and administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185,000 to $3,900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other? 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case net income? 3. Based on your analysis in requirement 2. what changes should General Mills make
