Please show calculations and how they r done, and 3 decimal places where possibl

Question

Please show calculations and how they r done, and 3 decimal places where possible, thank you!

I need all the answers, but can u pls explain part C in depth, i dont get it , thank you!

4.2 Fudge Delights Inc Contributed by Mary M. Oxner PhD, CA, CFA Associate Professor, Gerald Schwartz School of Business, St. Francis Xavier University, Antigonish Sarah Cameron has loved confections her whole life and as a young girl learned how to make peanut brittle, fudge, and toffee from her grandmother. Sarah has continued the candy-making tradition in her family throughout her life and made fudge at Christmas and other holidays for friends and family and also sold fudge at craft shows and bazaars. Several years ago, Sarah explored the idea of making and sell ing her own brand of confections on a commercial basis. When the opportunity arose and her business plan allowed, Sarah opened a candy store, Fudge Delights Inc., in which she sells a variety of candies and confections, many of which remind customers of candy they had as kids. In addition to the candy that she buys from suppliers, Sarah makes different flavours of fudge for sale in her store. Because fudge has a rea sonable shelf life, Sarah can make i in large batches weeks ahead of the time anticipated for sale. Sarah's favourite flavours include classic maple, chocolate chip chocolate, maple walnut, cherries and cream, chocolate mint julep, lemon drop, and toffee almond. From Sarah's perspective, the variety and number of flavours is as large as one's imagination. Sarah's confectionary store has earned a great reputation for premium confections and high-quality fudge, resulting in a 50% increase in sales year over year for the last four years. There are many ways to make fudge. Sarah uses the same basic technique for all the varieties. To make the fudge, she cook agitates it until crystals form that are smaller than the original sugar crystals; the agitation is primarily what gives fudge its creamy texture. Sarah does not vary the approach to making fudge but does vary the ingredi- ents to create the different flavours. Currently Sarah does not make custom flavours for customers but might consider doing so in the future if time and demand allow. The fudge is sold in ½-lb, and 1-lb. slabs at a price of $7.00 per ½ lb. or $12.00 for l lb. regardless of the flavour of fudge. (Homemade fudge is typically sold by the pound in Canada.) s a sugar syrup to the soft-ball stage, lets it cool for a specified amount of time, and then

Explanation / Answer

costs can be summarised as follows

using above data we can calculate cost per batch (10 lb batch)

Classic mapple walnuts - M

Classic chocolate - C

Peanut butter with peanuts - P

Chocolate Turtle -T

2 (1/4)

Part c) Data which Sarah has collected will surely help her in making right decisions with respct to these three areas namely.

1) Production level. When she will identify which flavour gives her the most profitability , she can make provisions to increase its level of output. i,.e. producing more of those flavours which are more profitable. Business man will always produce more of what is sold the most. it will channelise her production activity toward her main aim of increasing profitability

2) Pricing. These evaluations will help her in identifying costs of different flavours, which is very crucial to know whether the firm is selling at right price or at price lesser then its cost. Pricing should be such that it covers not only cost but profit also. These steps can be taken only once you are aware about cost of manufacturing the thing.

3) Product offering: This is also linked to what product need to be focused more and is there any need to add new product line or to make amenmends in existing products. What can be possible improvements in existing products etc.

Item Qty. in cups Rate in Dollar cost per cup Sugar 100 20 0.20 Butter 10 20 2.00 Mapple syrup 10 25 2.50 Chocolate syrup 15 23 1.53 Walnuts 20 25 1.25 Peanut Butter 20 20 1.00 Peanuts 20 15 0.75 Caramel 25 25 1

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