Hi, could you please help with Questions 1 b, c, and d of this Case Study homework? I've managed to answer 1a.I need guidance on how to calculate for b, c, and d.
For reference, I've included the template that the professor gave us.As you can see, I've completed 1a. I've also made notes on the right side. I can't seem to attach anything to here other than an "image" file and, therefore, was not able to attach this Excel worksheet in Excel format.
Grateful for your help.
1. Economic feasibility analysis:
How do I calculate for an economic cost-benefit analysis of whether PFVC should launch Chicken Sensations? To aid my analysis, I know I need to perform the following tasks:
a. Quantity, revenue, and cost conversions:
I've done this already. Could you please check if I did my calculations correctly?
b. Forecasted contribution margin income statement:
How do I make a forecasted Chicken Sensations contribution margin format income statement for year 1 based on the projected data gathered by Vicki?
c. Breakeven analysis:
How do I calculate the breakeven point analysis (in cases and sales dollars) for the year 1 forecasts of Chicken Sensations?
d. Margin of safety:
How do I calculate for the margin of safety analysis (in cases and sales dollars) for the year 1 forecasts of Chicken Sensations?
Student Template 2021-03-08 WEEK 2 SUBMISSION 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 36.00 $3.00 Forecasted Sales Volume (Cases): Month YR 1 Cases Sold $ SALE YR 1 POST $ SALE Cases Sold Cases 65,000 2,340,000 230,000 8,280,000 First Month Sales Volume 65, 000 Initial sales forecast for the first month 30,000 ,880,000 230,000 3,280,000 Monthly Sales Growth Year 15,000 Sales growth per month for the first year 95,000 3,420,000 230,000 280 000 +280,000 Months per year in Year 1 Number of months in a year 110,000 3,960,000 230,000 8,280,000 Sales Forecast Error Percentage 25% Percent possible sales forecast error 25,000 4,500,000 230,000 3,280,000 December Sales Volume $8,280,000.00 230,000 140.000 5,040,000 230,000 8,280,000 First Year Sales Volume $55, 648,800.00 1, 770,000 55,000 5,580,000 230,000 8,280,000 Annual Sales Volume After Year 1 $93, 398,400.00 2, 760,000 170,000 6,120,000 230,000 3,280,000 Sades Price/Coupon Costs/Commissions: 85,000 6,660,000 230,000 8,280,000 Bags/Case Per Case 200,000 7,200,000 230,000 8,280,000 Sales Price to Retailers ($ per bag) $3.00 12 36.00 Based on sales price per bag and number of bags per case 215,000 7,740,000 230,000 8,280,000 Coupon Costs ($ per bag) $0.20 12 2.40 Based on coupon per bag and number of bags per case 230,000 8,280,000 230,000 8,280,000 Commission (percentage) 600% 2.16 Percentage of sales price paid to brokers 1,770,000 $ 63,720,000.00 2,760,000 99,360,000.00 Slotting/ Package Design/Sales Salaries: Total Cost (S) Useful Life Annual 6% COMMISSION S (3,823,200.00) $ (5,961,600.00) Slotting Costs $6,000,00 6,000,000 Expected slotting costs to be expensed over n years $0.20 COUPON/BAG $ (4,248,000.00) Package Design Costs $2,000,000 2,000,000 Expected packaging design costs paid in the first year SALES AFTER COMMISSION/COUPON $ 55,648,800.00 $ 93,398,400.00 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 1b): Percent Cost/Pound Dollars/Case Chicken 20% $ 2.0000 $ 6.00000 Expected cost of chicken per Chicken Sensations pound Vegetables 65% 0.5000 $ 4.87500 Expected cost of vegetables Chicken Sensations per poun Spaetzels 15% $ 0.1500 $ 0.33750 Expected cost of spaetzels per Chicken Sensations pound Total (Must be 100%) 100% Total must be 100% Weighted Average Raw Material Cost 0.74750 Weighted average cost per pound of Chicken Sensations Pounds per Case Total Raw Material Cost per Case $ 11.2125 Chicken Sensations cost per case (15 pounds per case) Packaging Costs: Cost per Bag/Box ($) Qty/Case Dollars/Case Bags $0.20 2.40 Based on price per bag and number of bags per case Box $0.30 1.30 Expected price per box with one box per case Total Packaging Cost per Case 2.70 Total packaging costs of bags and boxes per cas Total Direct Material Costs per Case 13.9125 Total Chicken Sensations materials and packaging costs Conversion Costs: Cost/Pound Pounds/Case Dollars/Case Direct Labor $0.30 4.5000 Based on labor costs per pound and number of pounds per case Variable Manufacturing Overhead $0 40 6.0000 Based on var. mfg. overhead per pound and number of pounds per case Total Coversion Cost per Case 10.5000 Total conversion costs per case Total Variable Product Cost per Case 24.4125 Total direct material and conversion cost Retrofit Costs: Total Cost (S) Useful Life Depreciation Retrofit Costs $2,000,000 5 $ 400,000 Expected retrofit costs and depreciable li fe Chicken Sensations Year of Projected Performance Analyzed Selected Year of Analysis Year = N/A KEY: ell Reference Information Provided in Problem Data to be provided by Student
