Part 1 You work as the management accountant in Pizza4U Ltd., a snack food manufacturing company that produces a successful range of snacks and finger foods. However, one of the pizzas in the range, the pineapple veggic, seemed not to be selling well and drastic measures are needed to improve the sale. Your manager had asked the marketing department to conduct a marketing survey cleven months ago. In the survey which involves 2000 customers, cach customer was asked about their preferred Navour, packaging and price. Based on the responses, alterations to the ingredients, packaging and prices were deemed necessary and the sales forecast for each month was made. A business plan was presented to management and it is anticipated that this will help increase profitability this year, allowing the promised dividends to be paid to the shareholders The plan consists of two phases. The first phase involves making changes to the pizza top mixture. By increasing the veggie option from three to four types of veggies and at the same time reduce the quantity of cheese, will make it lighter but the size remains the same. Besides the extra veggie option, customers will have the option to decide on the mix of the four types of veggies to suit their tastebuds. The second phase involves changing the shape of the pizza from circle to rectangle to fit the new packaging These changes will mainly affect the variable cost. Required: Your manager, Mrs Dassen, presented you with the following information regarding the forecasted price quantity behaviour of the new product for one month and asked you to prepare a report that: () shows graphically the cost, price and quantity on customer's demand behaviour and to comment on the results, and (i) indicates which cost strategy would provide the best value for money and justify your Teason's). (in) Mrs Dassen thinks making 900 pizza a month is the best strategy because it yields the highest profit. Do you agree with her? Justify your answer. Total Forecasted Prices Quantity (riyals) Fived cent SAR600) Variable cost per riyals) 00) riyals 49 40 4000 5000 100 150 200 250 300 350 100 500 800 35 55 70 79 1000 1000 1000 1000 1000 1000 2000 2000 20 20 20 20 20 20 15 15 15 12 9500 14000 20300 1000 1000 1000 1000 1000 1200 5000 SCOO SOLO SOCO 5000 S000 17 17 17 17 17 32000 22000 22000 22000 (Marks: 20%) Continue Part 1 You work as the management accountant in Pizza4U Ltd., a snack food manufacturing company that produces a successful range of snacks and finger foods. However, one of the pizzas in the range, the pineapple veggic, seemed not to be selling well and drastic measures are needed to improve the sale. Your manager had asked the marketing department to conduct a marketing survey cleven months ago. In the survey which involves 2000 customers, cach customer was asked about their preferred Navour, packaging and price. Based on the responses, alterations to the ingredients, packaging and prices were deemed necessary and the sales forecast for each month was made. A business plan was presented to management and it is anticipated that this will help increase profitability this year, allowing the promised dividends to be paid to the shareholders The plan consists of two phases. The first phase involves making changes to the pizza top mixture. By increasing the veggie option from three to four types of veggies and at the same time reduce the quantity of cheese, will make it lighter but the size remains the same. Besides the extra veggie option, customers will have the option to decide on the mix of the four types of veggies to suit their tastebuds. The second phase involves changing the shape of the pizza from circle to rectangle to fit the new packaging These changes will mainly affect the variable cost. Required: Your manager, Mrs Dassen, presented you with the following information regarding the forecasted price quantity behaviour of the new product for one month and asked you to prepare a report that: () shows graphically the cost, price and quantity on customer's demand behaviour and to comment on the results, and (i) indicates which cost strategy would provide the best value for money and justify your Teason's). (in) Mrs Dassen thinks making 900 pizza a month is the best strategy because it yields the highest profit. Do you agree with her? Justify your answer. Total Forecasted Prices Quantity (riyals) Fived cent SAR600) Variable cost per riyals) 00) riyals 49 40 4000 5000 100 150 200 250 300 350 100 500 800 35 55 70 79 1000 1000 1000 1000 1000 1000 2000 2000 20 20 20 20 20 20 15 15 15 12 9500 14000 20300 1000 1000 1000 1000 1000 1200 5000 SCOO SOLO SOCO 5000 S000 17 17 17 17 17 32000 22000 22000 22000 (Marks: 20%) Continue