Answered step by step
Verified Expert Solution
Question
1 Approved Answer
McCain Ltd. is a privately-owned company located in Fredericton, New Brunswick. One of their newest products is Smiles a bag of French fries that are
McCain Ltd. is a privately-owned company located in Fredericton, New Brunswick. One of their newest products is "Smiles" a bag of French fries that are in the shape of a smile. As this is a new product and there is no historical data, the manager of the Smiles department would like you to determine the most profitable allocation of shipments. . . . The operations manager gave a few notes around shipp to each respective province: Nova Scotia sales = $7.25 per bag / cost of goods sold = $3.50 per bag / Demand = 24,000 bags Alberta sales = $6.50 per bag / cost of goods sold = $3.20 per bag / Demand = 18,000 bags Ontario sales = $6.75 per bag / cost of goods sold = $4.00 per bag / Demand = 65,000 bags New Brunswick sales = $6.00 per bag / cost of goods sold = $2.50 per bag / Demand = 21,000 bags Quebec sales = $7.75 per bag / cost of goods sold = $3.95 per bag / Demand = 32,000 bags British Columbia sales = $7.50 per bag / cost of goods sold = $4.05 per bag / Demand = 19,000 bags By 2021, McCain will be able to produce 100,000 bags of Smiles. The province of Quebec charges a $0.25 environmental tax for every bag of fries sold within the province. The province of New Brunswick gives a $0.10 shop local refund for every bag of fries sold within the province. The province of British Columbia charges an $0.08 freight charge for every bag of fries sold within the province. The province of Ontario has offered to give a $7,000 (one-time) refund if their entire demand of Smile Fries is fulfilled. You can allocate as much or as little as you want to any given province. . . Required Prepare a CVP analysis detailing what is the most profitable distribution schedule for McCain Smiles. Do not submit as an excel file, but submit as a professional PDF document
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started