Question Details

(Solved) III-I Eastlink '53-" 9:36 AM )3 45% [:1-ir smubrightspacecom Glen's Cookies (GC) produces a variety of baked goods that it sells to grocery...


Glen’s Cookies (GC) produces a variety of baked goods that it sells to grocery stores (the grocery channel) or to food service providers (the food service channel). GC is trying to analyze the profitability of its cookie line of products. GC charges the same prices and provides the same promotions to its customers, whether the customer was in the grocery store channel or the food service channel. GC has recently studied the food service channel and has discovered that this channel can be further refined into specialty cookie shops and industrial providers (cafeterias, hospitals, etc.). GC noticed that sales dollars for its products were relatively constant, but that profits were declining. The company sensed that specialty cookie shops might be more profitable than industrial providers, but really didn’t know. Segmented Income Statements for cookies in the food service channel for last year looked like this: Specialty Cookie Shops Industrial Providers Total Sales in Cases 3,000 12,000 15,000 Sales Revenue $ 50,700 $ 202,800 $ 253,500 Cost of Good Sold 34,500 13,8000 172,500 Gross Margin 16,200 64,800 81,000 Less: Merchandising 3,450 13,800 17,250 Selling and Admin 2,370 9,480 11,850 Net Income $ 10,380 $ 41,520 $ 51,900

III-I Eastlink ‘53-“ 9:36 AM )3 45% [:1-ir fl smubrightspacecom Glen’s Cookies (GC) produces a variety of baked goods that it
sells to grocery stores (the grocery channel) or to food service
providers (the food service channel). GC is trying to analyze the
profitability of its cookie line of products. GC charges the same
prices and provides the same promotions to its customers,
whether the customer was in the grocery store channel or the
food service channel. GC has recently studied the food service channel and has
discovered that this channel can be filrther refined into specialty
cookie shops and industrial providers (cafeterias, hospitals, etc).
GC noticed that sales dollars for its products were relatively
constant, but that profits were declining. The company sensed
that specialty cookie shops might be more profitable than
industrial providers, but really didn’t know. Segmented Income Statements for cookies in the food service
channel for last year looked like this: Specialty Cookie
Shops Industrial Providers Total Sales in Cases 3,000 12.000 15000
Sales Revenue $ 50,700 $ 202,000$ 253,500
Cost of Good Sold flfl fiw Em
Gross Margin [6,200 64,800 81,000
Less: Merchandising 3,450 13,800 11250 Selling and Admin gm 2% flfl
Net Income w& mg m& Cost of Goods Sold includes $142,500 for ingredients, baking,
and warehousing and $30,000 for picking, packing, and
shipping. The cookies are the same across all segments, so the
cost to produce is the same. However, Picking, Packing and
Shipping costs vary and are based on the cost for a full pallet.
Full pallets cost STS to pick and ship, where individual orders
cost $2.25 per case. There are 75 cases per pallet. Shipping
details for last year were: Specialty Cookie
Shops Industrial Providers Total Cases Shipped in Full Pallets 2,400 600 3,000
Individual Cases 600 1 1,400 12,000
Total Cases 3,000 1100015000 Selling and Admin costs are charged to the food service channel
based on the estimated budget amounts. However,
Merchandising Costs are the cost of point of sale display kits
and cost $ 5.00 each. Last year 3,450 kits were delivered, 90 of
them to the Specialty Cookie Shops and the remainder to
Industrial Providers.

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Sep 05, 2019

PRICE: $18

Solution~000200201461.zip (25.37 KB)

Buy this answer for only: $18

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Sep 05, 2019

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now