how do the two segments identified by Jenny for Colomco frozen yogurt sales differ from each other?
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Mini-Case w 12 USING A CHUR ACTIVITY EASED MAN Clarke ating the direct pretty tutte LOS 2. COGS Jenny has decided to take ACAS charted proxide case was heted service one of habae food ser destaque holandia cal but profiter dengan impulse location, but the comporte dat die statements forts Category mouse Location Sin 06 Sales moon . 20 30 2500 2009 CE bed Les in 000 ICD 12 Anal cost de Costa de su 1.000.000 fori pading and step The terte He puding les cotorid www.deden 2.25. The wholy Impulse Location vogurte tota Cases in polets 0.000 240.000 300.000 indicanes 1.100.000 1.200.000 Totalco 1.200.000 300,000 100.00 Sales and merchandisingkit sell for each. A total of 3.6 lots were delivered in the period of the to yogurt shops for wing general and administration, costs were allocated to production gros sales dollar Jenny investigated and found when a nudom sample of the salesforce was to keep diaries for days, the resulting data revealed they spent much more time per deltat on yogurt than other General products. Jenny found when welling and administration costs were allocated based on the total allocation to yogurt products med 51.185.000 10 58.000.000. Of the total penting Colombo frozen yogurt, only 15 of that time was spent in shops Required 1. How do the two megmente dentified by Jenny for Colombo tranen yopitale de from each other 2. Using ABC analysis state the income tests above to show he income talento supping What percent income 3. Besed on your walysis in tequest 2 what there should conrad Mill maket I o Mini-Case 5-42 USING ARCTOR ACTIVITY-BASED MANAGEMENT (ABM). Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vicepresident of product development Mark has asked Jenny with analyzing the different channels used to market its Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/ARM approach to analyzing the operations at General Milla. Currently, General Mills charged the prices and provided the same promotion-53 per case-toite customers, whether the customer was in the grocery channel food purchased for later consum innot preparation at home or the food service outside of home, immediate consumption channel. Jenny quickly noticed there were two menests within food service destination yogurt shops or restaurants and impulse locations, located in business cafeteria and on school campuses and military bases. She also noticed that tale dollars for freten yogurt products were relatively constant, but profits were declining Jenny wed that destination your shops might be more profitable than impulse location, but the company didn't have the information about prodit differences to make changes. The case sales data and income statements for last year, by spent looked like this Category me LOGOR Total Sales in cases 1.200.000 300.000 1.500,000 Bolos $2,000,000 55.970,000 52.60.000 Les Promotion 1.500.000 Net 5,070.000 25.300.000 Cost of goods sold 13.300.000 Gross margin SOCO 1,620.000 2.100.000 Lens: Merchandising 1.300.000 345,000 1.125.000 Les Sebing, general, and admin pense 11 DOO Neringone 7.009 1.038.000 1.Dog Additional cost data: Cost of goods sold includes $14.250.000 for ingredients, packaging and songs, and $3,000,000 for picking, packing and shipping. The product is the same acros segments, no cout to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Tell pullets cost $75 to pick and shop, where individual orders cout $2.25 per case. There are 75 cases in a pallet, with pallet and care unge by segment shown here: Segment Impulse Location Yogurt Shops Total Cases in full pallets 60,000 240,000 300,000 Individual cases 1.140.000 60.000 Total cases 1.200.000 300.000 1.500.000 Sales and merchandising kits sell for $300 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general and administration, costs were allocated to products based on grow les dollar Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products, Jenny found when selling generaland administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185,000 to $3,900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other? 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case" net income? 3. Based on your analysis in requirement 2. what changes should General Mills maker Mini-Case w 12 USING A CHUR ACTIVITY EASED MAN Clarke ating the direct pretty tutte LOS 2. COGS Jenny has decided to take ACAS charted proxide case was heted service one of habae food ser destaque holandia cal but profiter dengan impulse location, but the comporte dat die statements forts Category mouse Location Sin 06 Sales moon . 20 30 2500 2009 CE bed Les in 000 ICD 12 Anal cost de Costa de su 1.000.000 fori pading and step The terte He puding les cotorid www.deden 2.25. The wholy Impulse Location vogurte tota Cases in polets 0.000 240.000 300.000 indicanes 1.100.000 1.200.000 Totalco 1.200.000 300,000 100.00 Sales and merchandisingkit sell for each. A total of 3.6 lots were delivered in the period of the to yogurt shops for wing general and administration, costs were allocated to production gros sales dollar Jenny investigated and found when a nudom sample of the salesforce was to keep diaries for days, the resulting data revealed they spent much more time per deltat on yogurt than other General products. Jenny found when welling and administration costs were allocated based on the total allocation to yogurt products med 51.185.000 10 58.000.000. Of the total penting Colombo frozen yogurt, only 15 of that time was spent in shops Required 1. How do the two megmente dentified by Jenny for Colombo tranen yopitale de from each other 2. Using ABC analysis state the income tests above to show he income talento supping What percent income 3. Besed on your walysis in tequest 2 what there should conrad Mill maket I o Mini-Case 5-42 USING ARCTOR ACTIVITY-BASED MANAGEMENT (ABM). Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vicepresident of product development Mark has asked Jenny with analyzing the different channels used to market its Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/ARM approach to analyzing the operations at General Milla. Currently, General Mills charged the prices and provided the same promotion-53 per case-toite customers, whether the customer was in the grocery channel food purchased for later consum innot preparation at home or the food service outside of home, immediate consumption channel. Jenny quickly noticed there were two menests within food service destination yogurt shops or restaurants and impulse locations, located in business cafeteria and on school campuses and military bases. She also noticed that tale dollars for freten yogurt products were relatively constant, but profits were declining Jenny wed that destination your shops might be more profitable than impulse location, but the company didn't have the information about prodit differences to make changes. The case sales data and income statements for last year, by spent looked like this Category me LOGOR Total Sales in cases 1.200.000 300.000 1.500,000 Bolos $2,000,000 55.970,000 52.60.000 Les Promotion 1.500.000 Net 5,070.000 25.300.000 Cost of goods sold 13.300.000 Gross margin SOCO 1,620.000 2.100.000 Lens: Merchandising 1.300.000 345,000 1.125.000 Les Sebing, general, and admin pense 11 DOO Neringone 7.009 1.038.000 1.Dog Additional cost data: Cost of goods sold includes $14.250.000 for ingredients, packaging and songs, and $3,000,000 for picking, packing and shipping. The product is the same acros segments, no cout to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Tell pullets cost $75 to pick and shop, where individual orders cout $2.25 per case. There are 75 cases in a pallet, with pallet and care unge by segment shown here: Segment Impulse Location Yogurt Shops Total Cases in full pallets 60,000 240,000 300,000 Individual cases 1.140.000 60.000 Total cases 1.200.000 300.000 1.500.000 Sales and merchandising kits sell for $300 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general and administration, costs were allocated to products based on grow les dollar Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products, Jenny found when selling generaland administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185,000 to $3,900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other? 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case" net income? 3. Based on your analysis in requirement 2. what changes should General Mills maker