Case Write-Up Instructions and Questions Show all of your work. If you are making an assumption, state and briefly explain the reason for the assumption. That can help me follow your approach. ...

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Case Write-Up Instructions and Questions Show all of your work. If you are making an assumption, state and briefly explain the reason for the assumption. That can help me follow your approach. Take your time and provide a clear layout for each answer. Upload your case write-up as a Word document with a .docx extension. Answer the following questions. 1. (60 points) Calculate breakeven in individual units (not cases) for Good Foods, Inc. in 2020. Be sure to show each step in the breakeven calculation. 2. (15 points) What is the breakeven in dollars? 3. (25 points) What market share will Good Foods, Inc. need in order to breakeven in 2020? 4. (15 bonus points) Calculate breakeven with a 5% return on sales. Grading Rubric Student Name: ____________________________________________________ Breakeven (60 points) Points Comment Correct formula 10 Categorical Correct selling price 15 Categorical Correct variable costs 15 Categorical Correct fixed costs 15 Partial credit: deduct 5 points for including an incorrect FC or excluding a legitimate FC Correct math 5 Categorical total points Breakeven Dollars (15 points) Correct formula10 Categorical Correct math 5 Categorical total points Breakeven Market Share (25 points) Correct approach10 Categorical Correct industry sales10 Deduct 5 points for including additional categories Correct math 5 Categorical total points Overall total points R.O.S. Breakeven (15 bonus points) Categorical; 5 points if right with wrong % m/u; otherwise 15 or zero Ovrl total with Bonus Module Two: Costs, Margins, Markups and Profits Contribution Margin = Selling price – Unit variable cost Cost = Selling price – $ Markup Selling Price = Cost + $ Markup $ Markup = % Markup on Cost * Cost $ Markup = % Markup on Selling Price * Selling Price % Margin on Cost = ($Markup / Cost) * 100 % Margin on Selling Price = ($Markup / Selling Price) * 100 % Margin on Cost = (% Margin on Selling Price / (100% - % Margin on Selling Price)) * 100 % Margin on Selling Price = (% Margin on Cost / (100 + % Margin on Cost)) * 100 Breakeven Volume = Fixed Costs / Contribution Margin Breakeven ROS = Divide fixed costs by % markup on selling price minus return on sales objective Return on Sales = (Total Revenue – Total Costs) / Total Revenue Pricing Elasticity = % ∆ in Quantity Demanded / % ∆ in Price, where % ∆ in Quantity Demanded = (Q2 – Q1) / Q1 % ∆ in Price = (P2 – P1) / P1 Optimal Price = (Maximum Reservation Price + Unit Variable Costs) / 2 Elasticity at Optimal Price = 1 / (% Mark-Up on Selling Price) Total Contribution Margin = (price – variable cost) * quantity. Module One Market Share = Company Sales Revenue / Market Sales Revenue Market Share = Penetration share X Share of Requirements X Heavy usage index Relative Market Share = Company’s Market Share / Largest Competitor’s Market Share Market Penetration = # of Customers who Buy at Least Once in the Category / Target Population Brand Penetration = # of Customers who Buy our Brand at Least Once / Target Population Penetration Share = Brand Penetration / Market Penetration Share of Requirements = Brand Purchases / Total Category Purchases by Brand Buyers Heavy Usage Index = Average Category Purchase by Brand Customers / Average Category Purchases by all Customers Brand Development Index = % of Brand Sales to Target Market / % of Total Market Population in Target Market or Average Brand Sales in Target Segment / Average Brand Sales in Total Market Category Development Index = % of Category Sales to Target Market / % of Total Market Population in Target Market Module Two Contribution Margin = Selling price – Unit variable cost Cost = Selling price – $ Markup Selling Price = Cost + $ Markup $ Markup = % Markup on Cost * Cost $ Markup = % Markup on Selling Price * Selling Price % Markup on Cost = ($ Markup / Cost) * 100 % Markup on Selling Price = ($ Markup / Selling Price) * 100 % Markup on Cost = (% Markup on Selling Price / (100% - % Markup on Selling Price) % Markup on Selling Price = (% Markup on Cost / (100 + % Markup on Cost) Case Write-Up Instructions and Questions Show all of your work. If you are making an assumption, state and briefly explain the reason for the assumption. That can help me follow your approach. Take your time and provide a clear layout for each answer. Upload your case write-up as a Word document with a .docx extension. Answer the following questions. 1. (60 points) Calculate breakeven in individual units (not cases) for Good Foods, Inc. in 2020. Be sure to show each step in the breakeven calculation. 2. (15 points) What is the breakeven in dollars? 3. (25 points) What market share will Good Foods, Inc. need in order to breakeven in 2020? 4. (15 bonus points) Calculate breakeven with a 5% return on sales.
Answered 2 days AfterMar 03, 2023

Answer To: Case Write-Up Instructions and Questions Show all of your work. If you are making an assumption,...

Khushboo answered on Mar 05 2023
43 Votes
Solution 1
Break even sales = fixed costs of year 2020 / (Unit selling price- Unit variable costs)

Step 1= ($200000+ $100000)/ ($45-$16)
Step 2= $300,000/ $29
Breakeven sales in individual units = 10,345 units
· The fixed cost only includes other expenses $100,000 and maintenance expenses $200,000.
· In calculation of variable costs for individual units there are six units in one case so the variable cost is as below:
    Particulars
    Amount
    Transportation cost
    7.20
    Broken Goods...
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