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RTE QA A+ Due Mar 28 by 10pm Points 10 Submitting a file upload Start Assignment 1. Compare and contrast the cost structures between
RTE QA A+ Due Mar 28 by 10pm Points 10 Submitting a file upload Start Assignment 1. Compare and contrast the cost structures between the branded cereal manufacturers and the private label cereal makers. You can compare the industry value chains of both types of cereal makers by using the cost structure information provided in Exhibit 2 and in the case text. [Assume that marketing costs are zero for the private label cereal makers. Some cost information for the private label cereal makers may not be directly available. So you need to estimate certain costs based on the information provided by the case.] Pay special attention to determining how the industry value chains are different for each type of breakfast cereal manufacturers. I am including a template below for your reference. Cost Structure Comparison Text Big Three Average Private Label private label calculations Raw materials $ 0.42 $ Packaging $ 0.19 $ manufacuting 0.52 $ Distribution $ 0.14 $ Advertising and sales 0.75 $ Depreciation, overhead $ 0.40 $ EBIT 0.40 $ Wholesale price 2.82 $ Retailer margin $ 0.38 $ Retail Price $ 3.20 $ 2. Explain how the private label cereal manufacturers have been able to lower their cost structure relative to the branded cereal manufacturers. Will the private label cereal makers be able to withstand a price war with the branded cereal manufacturers? Note: This is a Quantitative Assignment (QA) that requires numerical analysis of data from the case. You may attach a separate Excel file or include a table showing the cost differences in your submission. The written portion of QA assignments must be no longer than two double-spaced pages.
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