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undefined 1) You are a manager for TBSL. You have the following information about your products related to selling through their website directly to consumers
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1) You are a manager for TBSL. You have the following information about your products related to selling through their website directly to consumers (I rounded so to make it easier for you): Bar Dark Chocolate Cherry & Sea Salt $3.00 $1.00 200,000 bars Dark Chocolate Peanut Butter & Sea Salt $3.00 $0.75 400,000 bars Madagascar Vanilla Almond & Honey $3.00 $0.90 300,000 bars Wild Blueberry Pistachio $3.00 $1.00 100,000 bars Price Manufacturing Cost Demand / year Unit Contribution Contribution Margin Markup Total Contribution You have inside staff who handle orders, shipping, etc. You have 4 inside sales staff who each make $25,000 salary per year plus 10% commission. You also spend 5% of your total sales per year for promotion (advertising, etc.). Your other fixed costs are $15,000 per month. Answer the following questions (show your work): a. b. C. What is the unit contribution, contribution margin, markup, and total contribution for each bar flavor (fill in the table above)? What was the profit/loss for last year for the direct sales in this example (only include these revenues and expenses)? If you had one salesperson for each flavor, how many bars would have to be sold of each flavor just to cover the salary for that person (ignoring the other fixed expenses)? If TBSL offered a 10% discount for Blueberry bars, how many Blueberry bars would they have to sell to make the same contribution they would make without the discount? How many total bars (combined) would you have to sell to break-even given you expect similar ordering this year? Note: this is not a question about break even for each bar-it is a question about the total number of bars combined (Hint use a weighted average (Expected Value). d. eStep by Step Solution
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