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Chicken Sensations Panel A: Sales and Marketing Data Case Configuration: Pounds per case 1 5 Expected pounds per case Bags per case 1 2 Expected

Chicken Sensations
Panel A: Sales and Marketing Data
Case Configuration:
Pounds per case 15 Expected pounds per case
Bags per case 12 Expected number of bags per case
Forecasted Sales Volume (Cases):
Cases Sold Annual Sales Cases
First month sales volume $65,000 Initial sales forecast for the first month
Monthly sales growth - Year 1 $15,000 Sales growth per month for the first year
Months per year in Year 112 Number of months in a year
Sales forecast error percentage 25% Percent possible sales forecast error
December sales volume $230,000
First year sales volume $1,770,000
Annual sales volume after Year 1 $2,760,000
Sales Price/Coupon Costs/Commission:
Bags/Case Per Case
Sales price to retailers (price per bag) $3.0012 $36.00 Based on sales price per bag and number of bags per case
Coupon costs (price per bag) $0.2012 $2.40 Based on coupon per bag and number of bags per case
Commission (percentage)6% $2.16 Percentage of sales price paid to brokers
Slotting/Package Design/Sales Salaries:
Total Cost ($) Useful Life Annual
Slotting costs $6,000,0001 $6,000,000 Expected slotting costs to be expensed over n years
Package design costs $2,000,0001 $2,000,000 Expected packaging design costs paid in the first year
Sales salaries $400,000 $400,000 Expected annual additional sales and marketing salaries to be paid
Panel B: Production and Cost Data
Raw Material Percents/Costs (per lb):
Percent Cost/LB Per Case ($)
Chicken 20% $2.00 Expected cost of chicken per pound
Vegetables 65% $0.50 Expected cost of vegetables per pound
Spaetzels 15% $0.15 Expected cost of spaetzels per pound
Total (Must be 100%)100% Total must be 100%
Weighted average raw material cost/lb. Weighted average cost per pound
Pounds per case
Total Raw Material Cost per Case Chicken Sensations cost per case (15 pounds per case)
Packaging Costs:
Cost per Bag/Box Qty/Case Per Case
Bags $0.20 Based on price per bag and number of bags per case
Box $0.301 Expected price per box with one box per case
Total Packaging Cost per Case Total packaging costs of bags and boxes per case
Total Direct Material Costs per Case Total of Chicken Sensations and packaging costs
Conversion Costs:
Cost Per Lb ($) Lbs/Case Per Case ($)
Direct labor $0.30 Based on labor costs per pound and number of pounds per case
Variable manufacturing overhead $0.40 Based on var. mfg. overhead per pound and number of pounds per case
Total Coversion Cost per Case Total conversion costs per case
Total Variable Product Cost per Case Total direct material and conversion costs per case
Retrofit Costs:
Total Cost ($) Useful Life Annual Depreciation
Retrofit costs $2,000,0005 Expected retrofit costs and depreciable life
Chicken Sensations Year of Projected Perfomance Analyzed
Selected Year of Analysis: Year 1

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