Total 20,000 100% Input Values Number of Customer Meals Sales mix of customer meals) Number of Servings per Meal Number of Servings Number of Customer Orders Number of Donated Meals Number of Donated Deliveries Single Serving Dual Serving Family Size 3.000 5.000 12.000 15% 25% 60% 1 2 4 3,000 10.000 48,000 750 1.250 3,000 3,000 5,000 12.000 6 10 24 61,000 5,000 20,000 AD 5.00 per customer serving 5.00 $ 10.00 $ 20.00 Price Per Serving $ Price Per Meal $ Variable costs: : Customer Meals Direct Materials ($1 per serving) s Direct Labor (S0.75 per customer meal) $ Variable Manufacturing Overhead 60% of DL Variable delivery expenses (customer meals) 5 Donated Meals: : 1.00 per customer serving 0.75 per customer meal 60% of direct labor cost 2.00 per customer order 1.25 per donated meal 125.00 per delivery Variable Manufacturing cost of donated meals $ Variable delivery expenses (donated meals) S Fixed costs Fred manufacturing costs s Fixed selling expenses $ Fixed administrative expenses $ Total Fixed costs $ 75,000 29,000 40,000 144,000 Single Serving $ 15.000 Dual Serving Family Sue 50,000 $ 240,000 Total 305.000 IS $ 2.000 2.250 1350 1.500 2.70 10,000 $ 48,000 S 3.750 9,000 2,250 5.400 2.300 6000 5 3.70 $ 5.7015 61.000 15.000 9.000 10.000 12.10 $ 3750 250 1.50 6250 1250 1.505 15000 $ 21.000 1.5015 25,000 5.000 4.50 $ Total Sales Revenue 155 per serving) Less: Variable costs Customer Meals Direct Materials ($1 per customer serving Duet Labor (50.25 per customer meal) Variable Manufacturing Overhead (60% of Direct labor Customer Delivery Expenses ($2 per customer order) Total Variable Cost Per Customer Meal Donated Meals Variable Manufacturing Cost ($1.25 per donated meal) Donation Delivery Experts $125 per delivery) Total Variable Cost per Donated Meat Total Variable costs per med total Total Contribution Margin per meal total Less Foed Costs Allocated Based on Sales Revenue Fixed Manufacturing Expenses Feed Seling Expenses Fred Administrative Expenses Total Fed Expenses Net Operating Profit $ $ 4.203 12.600 5.20 5 7.205 5.25 26,000 $ 86,400 $ 60.230.00 4.80 $ 12.80 $ $ 9.00 24,000 s 153,500 $ 180,000.00 $ S 0.805 2.4001s $ $ $ 369 1426 1.9675 2002 (4.682 s 12.295 $ 59,016 S 4.754 $ 22,820 6.557 S 1,475 S 23,802112131 299 $ 40,299 75.000 29.000 40.000 144.000 36.000 S Bene Petit currently offers three meal sizes: single-serve, dual-serve, and family-sized. Single-serve meals make up about 5% of total sales revenue and have the lowest contribution margin of the three products. Taylor is trying to decide whether to eliminate single-serve meal kits but is unsure how it would affect profit and the number of meals donated to homeless families. The following additional details are available: The variable costs of the single serve meals (as well as the donated meals) could be avoided. About 10% of the fixed costs that are currently allocated to the single serve meals could be avoided. Taylor believes that about 25% of single serve customers would switch to dual-serving meals, but would reduce their order size to from 4 meals per week to 2 meals per week. Should Taylor eliminate the single-serve meals from her product/service offering? Why or why not? Total 20,000 100% Input Values Number of Customer Meals Sales mix of customer meals) Number of Servings per Meal Number of Servings Number of Customer Orders Number of Donated Meals Number of Donated Deliveries Single Serving Dual Serving Family Size 3.000 5.000 12.000 15% 25% 60% 1 2 4 3,000 10.000 48,000 750 1.250 3,000 3,000 5,000 12.000 6 10 24 61,000 5,000 20,000 AD 5.00 per customer serving 5.00 $ 10.00 $ 20.00 Price Per Serving $ Price Per Meal $ Variable costs: : Customer Meals Direct Materials ($1 per serving) s Direct Labor (S0.75 per customer meal) $ Variable Manufacturing Overhead 60% of DL Variable delivery expenses (customer meals) 5 Donated Meals: : 1.00 per customer serving 0.75 per customer meal 60% of direct labor cost 2.00 per customer order 1.25 per donated meal 125.00 per delivery Variable Manufacturing cost of donated meals $ Variable delivery expenses (donated meals) S Fixed costs Fred manufacturing costs s Fixed selling expenses $ Fixed administrative expenses $ Total Fixed costs $ 75,000 29,000 40,000 144,000 Single Serving $ 15.000 Dual Serving Family Sue 50,000 $ 240,000 Total 305.000 IS $ 2.000 2.250 1350 1.500 2.70 10,000 $ 48,000 S 3.750 9,000 2,250 5.400 2.300 6000 5 3.70 $ 5.7015 61.000 15.000 9.000 10.000 12.10 $ 3750 250 1.50 6250 1250 1.505 15000 $ 21.000 1.5015 25,000 5.000 4.50 $ Total Sales Revenue 155 per serving) Less: Variable costs Customer Meals Direct Materials ($1 per customer serving Duet Labor (50.25 per customer meal) Variable Manufacturing Overhead (60% of Direct labor Customer Delivery Expenses ($2 per customer order) Total Variable Cost Per Customer Meal Donated Meals Variable Manufacturing Cost ($1.25 per donated meal) Donation Delivery Experts $125 per delivery) Total Variable Cost per Donated Meat Total Variable costs per med total Total Contribution Margin per meal total Less Foed Costs Allocated Based on Sales Revenue Fixed Manufacturing Expenses Feed Seling Expenses Fred Administrative Expenses Total Fed Expenses Net Operating Profit $ $ 4.203 12.600 5.20 5 7.205 5.25 26,000 $ 86,400 $ 60.230.00 4.80 $ 12.80 $ $ 9.00 24,000 s 153,500 $ 180,000.00 $ S 0.805 2.4001s $ $ $ 369 1426 1.9675 2002 (4.682 s 12.295 $ 59,016 S 4.754 $ 22,820 6.557 S 1,475 S 23,802112131 299 $ 40,299 75.000 29.000 40.000 144.000 36.000 S Bene Petit currently offers three meal sizes: single-serve, dual-serve, and family-sized. Single-serve meals make up about 5% of total sales revenue and have the lowest contribution margin of the three products. Taylor is trying to decide whether to eliminate single-serve meal kits but is unsure how it would affect profit and the number of meals donated to homeless families. The following additional details are available: The variable costs of the single serve meals (as well as the donated meals) could be avoided. About 10% of the fixed costs that are currently allocated to the single serve meals could be avoided. Taylor believes that about 25% of single serve customers would switch to dual-serving meals, but would reduce their order size to from 4 meals per week to 2 meals per week. Should Taylor eliminate the single-serve meals from her product/service offering? Why or why not