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questions 1) a,b,c,d, and e Quesrions 2) a,b, and c 1) What revenues, profits, and profit by selling HVCC cheddar, and how will these three

questions 1) a,b,c,d, and e
Quesrions 2) a,b, and c image text in transcribed
image text in transcribed
1) What revenues, profits, and profit by selling HVCC cheddar, and how will these three revenue earned when a consumer buys a pound of Forit margins will HVCC, CM, and the cheese stores earn these three partners firms divide up the sales "a pound of HVCC cheddar? HVCC needs to understand the promit cach pound of HVCC cheddar that consumers buy (consume pound at a time, but, for this analysis, assu following information, and has important information on profits and margins that it still needs the profits and margins that it CM. and cheese stores will earn on sumers buy (consumers can buy more, or less than a for this analysis. assume they buy found). It has provided you with the tion, and has asked you to use this information as a basis to compute other HVCC expects that CM will charge cheese stores S15 for a pound of S15 for a pound of HVCC cheddar, cheese stores will cam a 25% gross margin on their selling price to final consumers: CM will earn a 23% gross margin on its selling price; HVCC will earn a 60% gross margin on its cost. UVCC has asked you to profits, and profit m e that som Using this information, HVCC has asked you to prepare a report, containing cach of the following five key indicators of costs revenues profits and profit margins for each of the three levels of the distribution chain (HVCC, CM, and the cheese stores). Note that some of this information is already contained above, so you do not need to calculate it. Also, please keep mind that you can assume that the selling price for one partner is the cost of goods sold for the next partner in the distribution chain. Thus, you can assume that HVCC's selling price is the same as CM's COGS, and that CM's selling price is the cheese stores' COGS. HVCC has asked you to give it a report which contains the following five pieces of information for each pound of HVCC Cheddar that is sold, for each of HVCC, CM, and the cheese stores: a) Cost of Goods Sold for that level of the distribution chain b) Selling Price c) Gross Margin in Dollars d) Gross Margin on Cost e) Gross Margin on Selling Price You may find it convenient to put your answers in a table, if you wish, but be sure to show all calculations. Please show your calculations to the nearest tenth of a penny or tenth of a percent. Please note that this will require 15 pieces of information, and you are given four of these above, and can get two more of these because one firm's selling price is the COGS for the firm it sells to. Thus, you will need to calculate nine additional pieces of information for HVCC 2) How much additional cheddar cheese would HVCC need to sell to break even on creating an improved web site and social media presence? Presently, HVCC's web site and social media presence are pretty minimal. It is considering investing S50,000 per year to improve these elements of its communication with consumers. The new web site would have more information and photographs describing how HVCC cheeses are produced, and stories about the dairy farms, farmers, and cows that provide milk. HVCC would also pay a writer/photographer to create a weekly blog, with many photos, on its web site and on several social media platforms. This blog would report on recent events at HVCC, including recipes that use its cheese, based on seasonal ingredients and holidays, new cheeses it introduces and other cheese-related events. HVCC does not want to raise its prices to pay for the improved online presence, but rather hopes that these activities will increase sales of its cheese. Here, let's focus on sales of HVCC Cheddar. a) How many additional pour many additional pounds of cheddar cheese must HVCC sell per year this additional $50,000 annual cost? b) How much would this additional cheese sell to consumers for, in tota c) How much would HVCC sell this additional cheese for when its HVCC sell per year to break even on consumers for, in total, at cheese stores? tional cheese for when it sells cheese to CM? 3)

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