CoursHeroTranscribedText: TUTORIAL 4 [16 April 2013 20 April 2013} (so MARKS} BE Biltohg [hereafter 'the company' and 'EE Biltong') is a Johannesburg based biltong manufacturer and retailer. The company is famous for its tasty biltong snack packets which are sold at lower prices than that of competitors. BE Etiltong oversees the entire process of the manufacture of the biltong; they buy the meat from a reputable local company. The meat is then cut into long strips and salted with a secret recipe which gives the biltong its special and unique avour. The spice mixture is rubbed into the meat by hand and the salted strips are then transferred to a suitable container for further curing. Thereafter the meat is dried in a solar dryer for a few hours. Once dry. the biltong is sliced by hand and packed into individual lot] gram packets. This is the only size of this product that they sell. The biltong is then sold to retailers. Salt and pepper are the principal ingredients used in 33's secret spice recipe, although other ingredients such as sugar. coriander. vinegar and Worcestershire sauce also give their biltong its famous taste. The nancial manager of BB Biltong has told you that the company is very pleased with the current state of affairs at the company. He informed you that actual sales for April 2017 were 2 DUO packets more than the 20 ODD packets that were expected to be sold. However. he cannot understand why actual results for April 201? differed so much from the budget as he has maintained the same labour force and the same suppliers for the month of April with the same strategic outlook as in prior months. He approached you. as a management consultant to look into this. and presented you with the following facts and figures: .l-TLEEF'FL 1) One third of the meat weight entered into the biltong manufacturing process is lost due to the drying process (Le. 3 kilograms of raw meat will make 2 kilograms of biltong). Raw meat is purchased from Flash lvleat distributors for R55 per kilogram 2) One kilogram of biltong meat (after drying} should use 5D grams of the special spice mix. EB Biltong purchases the spices from Patel Spices in orepackaged containers which cost R140 per kilogram. 3) The branded packaging is manufactured and imported from a supplier in Botswana who has proved to be more reliable and less expensive than local Eouth African competitors. The packets cost I15 Botswana Pula each