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Henhcy's chocolate factory is introducing new goarnet cbocolate and has hired you to coeduct a finascial analysis to figure bow well the ehoeolate will do.
Henhcy's chocolate factory is introducing new goarnet cbocolate and has hired you to coeduct a finascial analysis to figure bow well the ehoeolate will do. They provided yos with the information below is help you conduet your analyvis. Assistant manager's salary: 55,000 cocos buner per bar of chocolate: \$2 utilities 51000 milk per bar of checolate: 50,40 Reot: $4,000 Manager's salary: $5,000 Segar per bar of chocolate: 51.60 secret ingerdient for each bar of chocolate: 53.00 Factery worker wages per bar of chocolate: $3.00 Henbry has decided to use Connecticut as a teat market and the average price of a large gournet bar of chocolate in Connecticut is 520 . There are also 1 mittion ban of chocolane sold in burs of cbocolate sold in Conecticus. Une the numben provided above to anwer questions below. Make sure that you show all formulas and also show all your calculatione since there will be points awarded for the formula and calculations. Formulas are attached to the back of this teat. 1. The company wants you to caleulate (20 points): a. How many chocolate bars they need to kell to break ever. c. What proportice of market ihare will they be captiring if all they do is sell cnought shocolate io break ewem? 3. A sale penon from Hervbcy approached Walgreens and acked them to sell the Clocolate in their retail stores. Henbey offered to sell a bar of checolate to Walgreens for 515 dollars and Walgreens will sell the chorolste in theif stores foe $20. If Whalgroent agrees to Henhey's terms: (20 points) a. What will Henhcy's trade margin be? b. What will Henhcy' trade margin % be? c. What will Walgreen'r trode margin be? d. What will Waleren's trode margin % be? 4. Henhicy decided that they wanted to change their margin persens to 40%. How mach sboald they sell their chocolate to Walgeesa? (10 points) 5. If Herkhcy receives 40% margin for each bar of ebocolase, and Walgroes still sells the chocolate for $20, what will Walgroen') new tride margin % be? (10 points) Foraulas Brakever: Fixed cost (unit selling price - unit variable coits) Number of units you need to sell to achieve a profit turget: Fued coits + Proft Target (imit selling price - unit variable coess) Profit: Total Revethue - Total Cost (Unit selling proce X Qaantity Sold) - ((Total fixed cost) + (Unit variable cost X Quantity sold)) Calculating a new selling price if you are given a new profit urget: New aclline price = Profit Target + Total cost Quatity Sold Trede margin = Unit selling price - Unit cont of poods sold (weit seling price - unit variabie costs) Number of units you need to sell to schieve a profit taget: Fixed cests + Profit Tirges (unit selling price - unit variable costs) Profit: Total Reveoue 1. Total Cost (Unit selling price X Quantity Sold) - [(Total fixed cost) + (Unit variable cost X Quantity sold)] Calculating a new sclling price if you are given a new profit target: New setling price - Profit Target + Total cost Quantity Sold Trade inaggin = Unit selting price - Unit cost of goods sold Trade margin %=. Trade margin 100 unit selling price Calculating the selling price if you know the new target market peroentage: Vhit Cost of goods sold (1 - [Target margin % in decimals])
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