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Using ABC analysis, restate the income statements above to ahow new net income(Hint: add a line item for shipping) What is per case net income?
Using ABC analysis, restate the income statements above to ahow new net income(Hint: add a line item for shipping) What is "per case" net income?
Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). Ehat is "per case" net income?
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Mini-Case 5-42 USING ARCTOR ACTIVITY-BASED MANAGEMENT (ABM). Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vicepresident of product development Mark has asked Jenny with analyzing the different channels used to market its Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/ARM approach to analyzing the operations at General Milla. Currently, General Mills charged the prices and provided the same promotion-53 per case-toite customers, whether the customer was in the grocery channel food purchased for later consum innot preparation at home or the food service outside of home, immediate consumption channel. Jenny quickly noticed there were two menests within food service destination yogurt shops or restaurants and impulse locations, located in business cafeteria and on school campuses and military bases. She also noticed that tale dollars for freten yogurt products were relatively constant, but profits were declining Jenny wed that destination your shops might be more profitable than impulse location, but the company didn't have the information about prodit differences to make changes. The case sales data and income statements for last year, by spent looked like this Category me LOGOR Total Sales in cases 1.200.000 300.000 1.500,000 Bolos $2,000,000 55.970,000 52.60.000 Les Promotion 1.500.000 Net 5,070.000 25.300.000 Cost of goods sold 13.300.000 Gross margin SOCO 1,620.000 2.100.000 Lens: Merchandising 1.300.000 345,000 1.125.000 Les Sebing, general, and admin pense 11 DOO Neringone 7.009 1.038.000 1.Dog Additional cost data: Cost of goods sold includes $14.250.000 for ingredients, packaging and songs, and $3,000,000 for picking, packing and shipping. The product is the same acros segments, no cout to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Tell pullets cost $75 to pick and shop, where individual orders cout $2.25 per case. There are 75 cases in a pallet, with pallet and care unge by segment shown here: Segment Impulse Location Yogurt Shops Total Cases in full pallets 60,000 240,000 300,000 Individual cases 1.140.000 60.000 Total cases 1.200.000 300.000 1.500.000 Sales and merchandising kits sell for $300 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general and administration, costs were allocated to products based on grow les dollar Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products, Jenny found when selling generaland administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185,000 to $3,900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other? 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case" net income? 3. Based on your analysis in requirement 2. what changes should General Mills maker Mini-Case 3-42 USING ABC FOR ACTIVITY-BASED MANAGEMENT (ABM Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vice president of product development Mark has tasked Jenny with analyzing the different channels used to marketits Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/AFM approach to analyzing the operations at General Mills. Currently. General Mills charged the same prices and provided the same promotion-$3 per cute to its customers, whether the customer was in the grocery channel food purchased for later consumption or preparation at home or the food service outside of home, imate consumption channel. Jennyly noticed there were to gents within food to destination yogurt shop or restaurant and impulse location located in business cafeteriasando school campuses and military base. She also noticed that als does for from yogurt products were constant, but prodit were declining Jeny sense that destination your shops might be more profitable than Impulse locations, but the company didn't have the indication about producence to changes. The com les data and income statements for last year, by went looked like the Category Location Sales in cases 1.200.000 300.000 100.000 Ses revenue 0.000 55.000 Les Promotions 4300.000 Net ses 20.200,000 500.000 Cost of goods sold 13.300.000 3.450.000 Groes margin 5.410.000 1.620.000 4.100.000 Less: Merchandising 1.300.000 345.000 1.728.000 Less: Seling. general, and admin expenses 237.000 Net income 54112000 51.000.00 $190.000 Additional cost data: Cost of goods sold includes $16.250,000 for ingredients, packaging and storage, and 53.000.000 for picking packing and shipping. The product is the same across agents. so cost to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Full pallets cost $75 to pick and ship, where individual orders cost $2.25 per case. There are 75 cases in a pallet with pallet and care rage by gment shown here: Segment Impulse Location Yogurt Shops Total Cases in full pallets 60.000 240,000 300,000 Individual cases 1.140.000 50.000 1.200.000 Total cases 1.200,000 300.000 1.500.000 Sales and merchandising kits sell for $500 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general, and administration costs were allocated to products based on gross sales dollars. Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products. Jenny found when selling general, and administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185.000 to 53.900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case" net income 3. Based on your analysis in requirement 2, what changes should General Mills make Mini-Case 5-42 USING ARCTOR ACTIVITY-BASED MANAGEMENT (ABM). Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vicepresident of product development Mark has asked Jenny with analyzing the different channels used to market its Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/ARM approach to analyzing the operations at General Milla. Currently, General Mills charged the prices and provided the same promotion-53 per case-toite customers, whether the customer was in the grocery channel food purchased for later consum innot preparation at home or the food service outside of home, immediate consumption channel. Jenny quickly noticed there were two menests within food service destination yogurt shops or restaurants and impulse locations, located in business cafeteria and on school campuses and military bases. She also noticed that tale dollars for freten yogurt products were relatively constant, but profits were declining Jenny wed that destination your shops might be more profitable than impulse location, but the company didn't have the information about prodit differences to make changes. The case sales data and income statements for last year, by spent looked like this Category me LOGOR Total Sales in cases 1.200.000 300.000 1.500,000 Bolos $2,000,000 55.970,000 52.60.000 Les Promotion 1.500.000 Net 5,070.000 25.300.000 Cost of goods sold 13.300.000 Gross margin SOCO 1,620.000 2.100.000 Lens: Merchandising 1.300.000 345,000 1.125.000 Les Sebing, general, and admin pense 11 DOO Neringone 7.009 1.038.000 1.Dog Additional cost data: Cost of goods sold includes $14.250.000 for ingredients, packaging and songs, and $3,000,000 for picking, packing and shipping. The product is the same acros segments, no cout to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Tell pullets cost $75 to pick and shop, where individual orders cout $2.25 per case. There are 75 cases in a pallet, with pallet and care unge by segment shown here: Segment Impulse Location Yogurt Shops Total Cases in full pallets 60,000 240,000 300,000 Individual cases 1.140.000 60.000 Total cases 1.200.000 300.000 1.500.000 Sales and merchandising kits sell for $300 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general and administration, costs were allocated to products based on grow les dollar Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products, Jenny found when selling generaland administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185,000 to $3,900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other? 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case" net income? 3. Based on your analysis in requirement 2. what changes should General Mills maker Mini-Case 3-42 USING ABC FOR ACTIVITY-BASED MANAGEMENT (ABM Jenny Chen is in charge of marketing at General Mills, Jenny reports to Mark Hamin, vice president of product development Mark has tasked Jenny with analyzing the different channels used to marketits Colombo frozen yogurt products to find the best path to profitability LOS 2. COGS Impulse $11.400.000 Jenny has decided to take an ABC/AFM approach to analyzing the operations at General Mills. Currently. General Mills charged the same prices and provided the same promotion-$3 per cute to its customers, whether the customer was in the grocery channel food purchased for later consumption or preparation at home or the food service outside of home, imate consumption channel. Jennyly noticed there were to gents within food to destination yogurt shop or restaurant and impulse location located in business cafeteriasando school campuses and military base. She also noticed that als does for from yogurt products were constant, but prodit were declining Jeny sense that destination your shops might be more profitable than Impulse locations, but the company didn't have the indication about producence to changes. The com les data and income statements for last year, by went looked like the Category Location Sales in cases 1.200.000 300.000 100.000 Ses revenue 0.000 55.000 Les Promotions 4300.000 Net ses 20.200,000 500.000 Cost of goods sold 13.300.000 3.450.000 Groes margin 5.410.000 1.620.000 4.100.000 Less: Merchandising 1.300.000 345.000 1.728.000 Less: Seling. general, and admin expenses 237.000 Net income 54112000 51.000.00 $190.000 Additional cost data: Cost of goods sold includes $16.250,000 for ingredients, packaging and storage, and 53.000.000 for picking packing and shipping. The product is the same across agents. so cost to produce is the same. However, picking packing and shipping costs vary if the order is for a full pallet. Full pallets cost $75 to pick and ship, where individual orders cost $2.25 per case. There are 75 cases in a pallet with pallet and care rage by gment shown here: Segment Impulse Location Yogurt Shops Total Cases in full pallets 60.000 240,000 300,000 Individual cases 1.140.000 50.000 1.200.000 Total cases 1.200,000 300.000 1.500.000 Sales and merchandising kits sell for $500 each. A total of 3,450 kits were delivered in the period. 90 of them to yogurt shops. For selling general, and administration costs were allocated to products based on gross sales dollars. Jenny investigated and found when a random sample of the sales force was asked to keep diaries for 60 days, the resulting data revealed they spent much more time per sales dollar on yogurt sales than other General Mills products. Jenny found when selling general, and administration costs were allocated based on time, the total allocation to yogurt products jumped from $1.185.000 to 53.900,000. Of the total time spent on selling Colombo frozen yogurt, only 1% of that time was spent in shops. Required 1. How do the two segments identified by Jenny for Colombo frozen yogurt sales differ from each other 2. Using ABC analysis, restate the income statements above to show new net income (Hint: add a line item for shipping). What is "per case" net income 3. Based on your analysis in requirement 2, what changes should General Mills make Step by Step Solution
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