Question
Schweizer Distribution specializes in distributing fresh produce to local restaurants in the Chicago area. The company currently sells 12 products through the efforts of three
Schweizer Distribution specializes in distributing fresh produce to local restaurants in the Chicago area. The company currently sells 12 products through the efforts of three sales representatives to 10 restaurants. The company, like all small businesses, is always interested in finding ways to increase revenues and decrease expenses
(B) Bob plans to stop selling the three worst-selling products (by total profit) to the best customer. However, if he does so it is expected that the best customer's profit with the remaining products will fall by 20%. (Consider that future profits will be similar to past profits.) This is because that customer may start buying from competitors. Should Bob do that?
(C) The company needs cash to purchase produce for future sales. (Assume past and future sales/costs are similar.) Bob plans to take a $305,000 loan.
C1. Is the loan enough to cover total costs?
C2. Bob obtained loan quotations from several banks as follows:
- Bank I offered a loan at 5.8% APR (annual percentage rate) to be paid back in 12 fixed monthly payments.
- Bank II offered a loan to be paid back in 12 fixed monthly payments of $26 thousand each.
- Bank III offered a loan at 5% APR to be paid back in fixed monthly payments of $26,110.
- What is the best offer for Bob? Why?
Table B and C
| (B) Question | Total | Total (after reduction) | |||
| Best customer's total profit without three worst selling products (by total profit) | |||||
| Should Bob stop selling the three worst-selling products (by total profit) to the best customer? Why? | |||||
| (C) Question | Total | ||||
| Total Cost | |||||
| (C) Loan Quotations | Loan | APR | Num. months | payment/month | FV |
| Bank I | |||||
| Bank II | |||||
| Bank II | |||||
| What is the best loan offer for Bob? Why? |
just do this sample of the table
| OrderDate | ProductID | ProductName | Quantity | Unit Price | Total Sales | Unit Cost | Total Cost | Profit | CustomerID | Customer | SalesRep |
| 04-Jan-18 | 22 | Mozzarella cheese | 41 | $ 24.00 | $ 984.00 | $ 18.00 | $ 738.00 | $ 246.00 | 315 | The Station | PJ Helgoth |
| 04-Jan-18 | 16 | Romaine lettuce | 90 | $ 15.00 | $ 1,350.00 | $ 14.00 | $ 1,260.00 | $ 90.00 | 315 | The Station | Roberta Cross |
| 05-Jan-18 | 30 | Red onions | 27 | $ 12.00 | $ 324.00 | $ 8.00 | $ 216.00 | $ 108.00 | 233 | Bert's Bistro | Loraine Schultz |
| 06-Jan-18 | 16 | Romaine lettuce | 67 | $ 15.00 | $ 1,005.00 | $ 14.00 | $ 938.00 | $ 67.00 | 14 | Smoke House | Roberta Cross |
| 07-Jan-18 | 2 | Black olives | 79 | $ 12.00 | $ 948.00 | $ 6.00 | $ 474.00 | $ 474.00 | 572 | Flagstaff House | Loraine Schultz |
| 07-Jan-18 | 16 | Romaine lettuce | 46 | $ 15.00 | $ 690.00 | $ 14.00 | $ 644.00 | $ 46.00 | 23 | Two Bitts | Loraine Schultz |
| 07-Jan-18 | 16 | Romaine lettuce | 52 | $ 14.00 | $ 728.00 | $ 15.00 | $ 780.00 | $ (52.00) | 6 | Pierce Arrow | Roberta Cross |
| 08-Jan-18 | 30 | Red onions | 39 | $ 12.00 | $ 468.00 | $ 8.00 | $ 312.00 | $ 156.00 | 95 | Mamm'a Pasta Palace | Loraine Schultz |
| 09-Jan-18 | 16 | Romaine lettuce | 66 | $ 15.00 | $ 990.00 | $ 14.00 | $ 924.00 | $ 66.00 | 846 | The Dandelion | Loraine Schultz |
| 10-Jan-18 | 16 | Romaine lettuce | 58 | $ 15.00 | $ 870.00 | $ 14.00 | $ 812.00 | $ 58.00 | 557 | Carmens | Loraine Schultz |
| 10-Jan-18 | 39 | Pineapple | 40 | $ 33.00 | $ 1,320.00 | $ 28.00 | $ 1,120.00 | $ 200.00 | 315 | The Station | Loraine Schultz |
| 11-Jan-18 | 39 | Pineapple | 71 | $ 33.00 | $ 2,343.00 | $ 28.00 | $ 1,988.00 | $ 355.00 | 846 | The Dandelion | Loraine Schultz |
| 14-Jan-18 | 16 | Romaine lettuce | 18 | $ 15.00 | $ 270.00 | $ 14.00 | $ 252.00 | $ 18.00 | 557 | Carmens | Loraine Schultz |
| 14-Jan-18 | 16 | Romaine lettuce | 28 | $ 15.00 | $ 420.00 | $ 14.00 | $ 392.00 | $ 28.00 | 572 | Flagstaff House | PJ Helgoth |
| 15-Jan-18 | 85 | Pepperoni | 33 | $ 53.00 | $ 1,749.00 | $ 35.00 | $ 1,155.00 | $ 594.00 | 14 | Smoke House | Roberta Cross |
| 15-Jan-18 | 100 | Parmesan cheese | 14 | $ 8.00 | $ 112.00 | $ 4.00 | $ 56.00 | $ 56.00 | 14 | Smoke House | Loraine Schultz |
| 16-Jan-18 | 100 | Parmesan cheese | 72 | $ 8.00 | $ 576.00 | $ 4.00 | $ 288.00 | $ 288.00 | 95 | Mamm'a Pasta Palace | Roberta Cross |
| 18-Jan-18 | 100 | Parmesan cheese | 10 | $ 8.00 | $ 80.00 | $ 4.00 | $ 40.00 | $ 40.00 | 95 | Mamm'a Pasta Palace | Loraine Schultz |
| 18-Jan-18 | 16 | Romaine lettuce | 42 | $ 15.00 | $ 630.00 | $ 14.00 | $ 588.00 | $ 42.00 | 14 | Smoke House | Roberta Cross |
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