Now It's Your Turn. Show Us What You Know Shannon's Brewery is a newly opened micro-brewery of craft beers located about a mile from Samantha Springs in Keller, Texas. According to Shannon Carter, (owner, founder, and brew master) Samantha Springs "is an exceptional water source." "It's surrounded by a very unique rock formation that has very,very hard compressed rocks that have been hollowed out with this very fine sand. The water travels for miles, and the end product is this filtered water that is just phenomenal." Shannon Carter crafts what the brew master calls "wholesome beers" made with the highest quality, non-GMO grains and malts available and brewed using techniques garnered from his Irish heritage. Shannon's mission statement closely reflects this philosophy. According to Shannon Carter: Our award-winning beer is brewed with the best stuff on earth: pure spring water, whole grain, whole flower hops and a whole lotta love! For us, "brewed with the best stuff on earth," is much more than a saying...it's a guiding principle. Paramount to this commitment is our multi- step fire-brewed process."12] What makes Shannon's beer great?[3] Pure Samantha Springs Water - We start the brewing process with pure Samantha Springs water - straight from the spring, through our filtering system, right into our brewing tanks - no chlorine, fluoride or any other treatments...just pure spring water. Fire Brewed Process- Our beer is brewed using an old-world fire-brewed process handed down by the founder's great grandfather. This process enables us to preciselyy control enzyme activity, produce superior malty flavors and delicately caramelize our sugars creating truly wonderful and unique beers All-Natural & Wholesome Ingredients- We use pure spring water, quality malted barley and whole flower hops in all of our brews. This provides our beer a complexity, flavor profile and aroma that is wholesome, natural and truly enjoyable Patience - Great beer takes time - it requires patience in brewing, fermenting and especially aging. Our beers are allowed to age properly, ensuring a wholesome and great tasting beer Consider the following revenue and cost data for Shannon's Brewery in Keller, Texas Shannon's sells 35% of its craft beer production through its own on-premise taproom The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on-premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon's craft beer sales (60%) occurs in kegs (31 gallons per keg) Variable Costs: Beer sold in kegs. Includes the direct costs of ingredients and packaging Beer sold in bottles and cans. Includes the direct costs of ingredients and packaging. Shrinkage and WIP loss. Losses from theft, damage, deterioration. Direct Labor. Hourly labor costs for production and brew house operations. Contract Labor. Hourly costs of contract labor hired during periods of peak demand. Shipping. Shipping and handling costs to the wholesaler. . Fixed Costs: Consumer Advertising. Advertising in local cable TV and print media. Digital Media Promotion. Costs of promotion in social media and website maintenance Sales Promotion. Brochures, give-away items (specialty items), gifts not considered to be volume sensitive. Salaries and Benefits. Cost of management salaries, retirement, and healthcare benefits. Question 1 10 pts Consider the following revenue and cost data for Shannon's Brewery in Keller, Texas. Shannon's sells 35% of its craft beer production through its own on-premise taproom. The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on-premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon's craft beer sales (60%) occurs in kegs (31 gallons per keg) Assume that overall sales for FY 2018 are expected to be S1163340. Given the proportions of beer sold in kegs, bottles, and cans, what will be the predicted dollar sales of beer sold in kegs? Round your answer to the nearest one dollar Question 2 10 pts Assume the following costs in each of the categories identified in question one are Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $126985 $74409 $42,000 $9,000 $240,000 $18,000 $30,000 $30,000 $18,000 $180,000 What is Shannon's cost of goods sold? Question 3 10 pts Assume that projected revenue for 2018 is 1193024. Also assume the following projected 2018 costs in each of the cost categories from question one Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $149582 $61850 $42,000 $9,000 $240,000 $18,000 $30,000 $30,000 $18,000 $180,000 Given these costs, compute Shannon's projected contribution margin in dollars. Question 4 10 pts Assume that total sales revenue for 2018 is projected to be $1306582. Assume also the following costs for Shannon's Brewery: Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $150,000 $80,000 $42,000 $9,000 $240,000 $18,000 $32535 $31413 $18,000 $180,000 Compute Shannon's %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER. Now It's Your Turn. Show Us What You Know Shannon's Brewery is a newly opened micro-brewery of craft beers located about a mile from Samantha Springs in Keller, Texas. According to Shannon Carter, (owner, founder, and brew master) Samantha Springs "is an exceptional water source." "It's surrounded by a very unique rock formation that has very,very hard compressed rocks that have been hollowed out with this very fine sand. The water travels for miles, and the end product is this filtered water that is just phenomenal." Shannon Carter crafts what the brew master calls "wholesome beers" made with the highest quality, non-GMO grains and malts available and brewed using techniques garnered from his Irish heritage. Shannon's mission statement closely reflects this philosophy. According to Shannon Carter: Our award-winning beer is brewed with the best stuff on earth: pure spring water, whole grain, whole flower hops and a whole lotta love! For us, "brewed with the best stuff on earth," is much more than a saying...it's a guiding principle. Paramount to this commitment is our multi- step fire-brewed process."12] What makes Shannon's beer great?[3] Pure Samantha Springs Water - We start the brewing process with pure Samantha Springs water - straight from the spring, through our filtering system, right into our brewing tanks - no chlorine, fluoride or any other treatments...just pure spring water. Fire Brewed Process- Our beer is brewed using an old-world fire-brewed process handed down by the founder's great grandfather. This process enables us to preciselyy control enzyme activity, produce superior malty flavors and delicately caramelize our sugars creating truly wonderful and unique beers All-Natural & Wholesome Ingredients- We use pure spring water, quality malted barley and whole flower hops in all of our brews. This provides our beer a complexity, flavor profile and aroma that is wholesome, natural and truly enjoyable Patience - Great beer takes time - it requires patience in brewing, fermenting and especially aging. Our beers are allowed to age properly, ensuring a wholesome and great tasting beer Consider the following revenue and cost data for Shannon's Brewery in Keller, Texas Shannon's sells 35% of its craft beer production through its own on-premise taproom The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on-premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon's craft beer sales (60%) occurs in kegs (31 gallons per keg) Variable Costs: Beer sold in kegs. Includes the direct costs of ingredients and packaging Beer sold in bottles and cans. Includes the direct costs of ingredients and packaging. Shrinkage and WIP loss. Losses from theft, damage, deterioration. Direct Labor. Hourly labor costs for production and brew house operations. Contract Labor. Hourly costs of contract labor hired during periods of peak demand. Shipping. Shipping and handling costs to the wholesaler. . Fixed Costs: Consumer Advertising. Advertising in local cable TV and print media. Digital Media Promotion. Costs of promotion in social media and website maintenance Sales Promotion. Brochures, give-away items (specialty items), gifts not considered to be volume sensitive. Salaries and Benefits. Cost of management salaries, retirement, and healthcare benefits. Question 1 10 pts Consider the following revenue and cost data for Shannon's Brewery in Keller, Texas. Shannon's sells 35% of its craft beer production through its own on-premise taproom. The bulk of its sales (65%) are made off-premise via various retail outlets including supermarkets, bars, and restaurants. 40% of its of sales (on-premise and off-premise) consists of package sales (bottles and cans). Of this 40%, beer sold in cans accounts for 80% with sales of bottled beer accounting for the remaining 20%. Finally, the bulk of Shannon's craft beer sales (60%) occurs in kegs (31 gallons per keg) Assume that overall sales for FY 2018 are expected to be S1163340. Given the proportions of beer sold in kegs, bottles, and cans, what will be the predicted dollar sales of beer sold in kegs? Round your answer to the nearest one dollar Question 2 10 pts Assume the following costs in each of the categories identified in question one are Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $126985 $74409 $42,000 $9,000 $240,000 $18,000 $30,000 $30,000 $18,000 $180,000 What is Shannon's cost of goods sold? Question 3 10 pts Assume that projected revenue for 2018 is 1193024. Also assume the following projected 2018 costs in each of the cost categories from question one Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $149582 $61850 $42,000 $9,000 $240,000 $18,000 $30,000 $30,000 $18,000 $180,000 Given these costs, compute Shannon's projected contribution margin in dollars. Question 4 10 pts Assume that total sales revenue for 2018 is projected to be $1306582. Assume also the following costs for Shannon's Brewery: Packaged (Cans & Bottles) Kegs Shrinkage/WIP Loss Contract Labor Direct Labor Freight Consumer Advertising Trade Promotion Sales Promotion Salaries & Benefits $150,000 $80,000 $42,000 $9,000 $240,000 $18,000 $32535 $31413 $18,000 $180,000 Compute Shannon's %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%. DO NOT INCLUDE THE % SIGN IN YOUR