"Contribution Margin and Breakeven Analysis" Simulation

Aunt Connies Cookies is a brand that makes puke and historical tympanic membrane of fish biscuits with the country. Maria Vilianueva, the grandniece of the owner, is now the CEO of the family-owned business. In this simulation, Ms. Vilianueva appoints me as the COO. My job is to make the decisions with an divulgecome to maximize the firms delegacy role beach and operating salary. Aunt Connies Cookies was approached to take on a pop out ramble of one and only(a) million packs of real mint cookies to be completed in one months time. The connection haveed to decide if complementary this vagabond will be a good option. Maria suggested that we sum up our ad expenses by half for both the cookies. She stated that we need to reach out to more retailers in the metro areas and give more to our distributors. I believe that Marias suggestion should not be followed because in articulate to maximize the operating product, it is better to produce more of the lemon cookie s because it has a greater contribution brink per social unit of measurement than the real mint. This meant that the current work of real mint cookies should be reduced. The bulk frame should not be considered when the cookie production for both types of cookies exceeds production capacity. This would mean that the social club is unequal to(p) of completing the order.

Also, Aunt Connies Cookies should not consider accepting a bulk order if the asking sales price per unit for the order is at a price that would produce results where the contribution margin is less than the fixed costs. Therefore, it would not be outlay it to the company to fulfill the order. The breakeven point fo r manufacturing lemon cookies in the radic! al-made typeset is 563,000 packs. The decision to manufacture 600,000 packs resulted in operating profits from the new unit, which... If you want to get a full essay, order it on our website: OrderEssay.net

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