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Frost Bakery Inc. has recently built a store in the metro where they can serve pet - friendly baked goods such as bread and cakes
Frost Bakery Inc. has recently built a store in the metro where they can serve petfriendly baked goods such as bread and cakes that can be consumed by the customers pets. They spent a total of pesos building the store, and they were very happy with the outcome. They began with one product called a pupcake for their store opening. The pupcake is a single cupcake meant to be served to pet dogs. Each piece is sold for pesos. In preparation for their store opening, Frost Bakery Inc. bought an oven for pesos. They also bought ingredients such as flour, bananas, peanut butter, potatoes and many more! They spent about pesos for the ingredients in preparation for the store opening. For every piece of pupcake, it would cost a total of pesos of ingredients each. The owners thought about buying baking equipment, however all the bowls, mixers, and other equipment needed were gifted to them by angel investors. Assuming these are all the costs to open the new store and serve the first customers of Frost bakery Inc., answer the questions that follow below.
What is the contribution margin?
How many pupcakes do they need to sell to reach breakeven?
Frost Bakery Inc. desires a profit of from the pupcakes. What must be his volume of sales to achieve this profit?
Frost Bakery Inc. has decided to expand its product line by introducing a new item on the menu called pupshakes They hired you to help them identify their potential demand for this new product. There was an estimate of pet owners in the barangay where the store was opened. After surveying pet owners in the area, pet owners responded that they are interested to purchase the pupshakes. Among those respondents, half of them would like to purchase pupshakes, while the rest would settle for just pupshake. However, when the same respondents learned that each pupshake would be sold for pesos, only was willing to pay the price. The others thought it was priced too high. Assuming a conservative rate of from these responses, answer the questions that follow below.
What is the net market acceptability rate?
What is the number of potential buyers?
What is the annual consumption rate?
What is the annual potential demand?
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