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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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