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

Forecasted Sales Volume $($Cases$)$:

Cases Sold Annual Sales Cases

First month sales volume $$65,000$ Initial sales forecast for the first month

Monthly sales growth $-$ Year $1$ $$15,000$ Sales growth per month for the first year

Months per year in Year $112$ Number of months in a year

Sales forecast error percentage $25\%$ Percent possible sales forecast error

December sales volume $$230,000$

First year sales volume $$1,770,000$

Annual sales volume after Year $1$ $$2,760,000$

Sales Price$/$Coupon Costs$/$Commission:

Bags$/$Case Per Case

Sales price to retailers $($price per bag$)$ $$3\mathrm{.}0012$ $$36\mathrm{.}00$ Based on sales price per bag and number of bags per case

Coupon costs $($price per bag$)$ $$0\mathrm{.}2012$ $$2\mathrm{.}40$ Based on coupon per bag and number of bags per case

Commission $($percentage$)6\%$ $$2\mathrm{.}16$ Percentage of sales price paid to brokers

Slotting$/$Package Design$/$Sales Salaries:

Total Cost $($$$)$ Useful Life Annual

Slotting costs $$6,000,0001$ $$6,000,000$ Expected slotting costs to be expensed over n years

Package design costs $$2,000,0001$ $$2,000,000$ Expected packaging design costs paid in the first year

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 lb$)$:

Percent Cost$/$LB Per Case $($$$)$

Chicken $20\%$ $$2\mathrm{.}00$ Expected cost of chicken per pound

Vegetables $65\%$ $$0\mathrm{.}50$ Expected cost of vegetables per pound

Spaetzels $15\%$ $$0\mathrm{.}15$ Expected cost of spaetzels per pound

Total $($Must be $100\%)100\%$ Total must be $100\%$

Weighted average raw material cost$/$lb$.$ Weighted average cost per pound

Pounds per case

Total Raw Material Cost per Case Chicken Sensations cost per case $(15$ pounds per case$)$

Packaging Costs:

Cost per Bag$/$Box Qty$/$Case Per Case

Bags $$0\mathrm{.}20$ Based on price per bag and number of bags per case

Box $$0\mathrm{.}301$ Expected price per box with one box per case

Total Packaging Cost per Case Total packaging costs of bags and boxes per case

Total Direct Material Costs per Case Total of Chicken Sensations and packaging costs

Conversion Costs:

Cost Per Lb $($$$)$ Lbs$/$Case Per Case $($$$)$

Direct labor $$0\mathrm{.}30$ Based on labor costs per pound and number of pounds per case

Variable manufacturing overhead $$0\mathrm{.}40$ Based on var. mfg$.$ overhead per pound and number of pounds per case

Total Coversion Cost per Case Total conversion costs per case

Total Variable Product Cost per Case Total direct material and conversion costs per case

Retrofit Costs:

Total Cost $($$$)$ Useful Life Annual Depreciation

Retrofit costs $$2,000,0005$ Expected retrofit costs and depreciable life

Chicken Sensations Year of Projected Perfomance Analyzed

Selected Year of Analysis: Year $1\backslash$table$[[$Total $($Must be $100\%),100\%,,$Total must be $100\%],[],[$Weighted average raw material cost$/$lb$.,,,$Weighted average cost per pound$],[$Pounds per case$],[$tal Raw Material Cost per Case,,,,Chicken Sensations cost per case $(15$ pounds per case$)],[$Packaging Costs:$],[,$Cost per Bag$/$Box$,$Qty$/$Case$,$Per Case,$],[$Bags$,$$$0\mathrm{.}20,,,$Based on price per bag and number of bags per case$],[$Box$,$$$0\mathrm{.}30,1,,$Expected price per box with one box per case$],[$tal Packaging Cost per Case,,,,Total packaging costs of bags and boxes per case$],[$tal Direct Material Costs per Case,Total of Chicken Sensations and packaging costs$],[$Conversion Costs:$],[,$Cost Per Lb $($$$),$Lbs$/$Case$,$Per Case $($$$),],[$Direct labor,$$0\mathrm{.}30,,,$Based on labor costs per pound and number of pounds per case$],[$Variable manufacturing overhead,$$0\mathrm{.}40,,,$Based on var. mfg$.$ overhead per pound and number of pounds per case$],[$tal Coversion Cost per Case,,,,Total conversion costs per case$],[$tal Variable Product Cost per Case,Total direct material and conversion costs per case$]]$