Compagnie du Froid

            One reason that could have led the ice cream sale to fluctuate could have been due to Price of Related goods. For example, frozen yogurt is a substitute for ice cream, so when the price increases, more ice cream is demanded. However, hot fudge is a compliment for ice cream, therefore when its price goes up, less ice cream is demanded. Second reason leading for the ice cream sale to fluctuate could be due to income. For normal goods, the higher your income, the more you buy. For inferior goods, the higher your income, the less you buy. Taste is another factor. When taste changes, the quantity demands change.  For example, our taste for ice cream might depend on the weather. Expectations are also an important factor.  Expectations about future income or prices affect the quantity demanded today.

The planned volume was 150,000 units and the actual units produced was 160,000. Since the units produced was higher than what was expected, the volume decreased the fixed cost per unit and the volume variance is

This case study describes an ice cream manufacturer, Compagnie du Froid S.A., founded by Jacques Truman’s father in 1985. It is a major competitor in the industry during summer and has presence in France, Italy and Spain. Compagnie du Froid practices decentralization in its organization, where each region is managed by a competent manager empowered to make business decisions in the best interest of the company.

The supply of raw materials can have a positive or negative effect on a cost strategy. Most of the steel used in domestic manufacturing in the United States is imported. On

One of the most notable patterns of sales in regards to total sales volume is that it increases drastically when the average price of soup is low (Average price is calculated by dividing Category Volume by Category Dollars). Total sales volume had significantly increased when either Rocket Soup or competitors (or both) offer low price for promotion. In other words, soup consumption is relatively elastic to price, meaning that customers are highly sensitive to price. See below graphs showing the inverse relationship between the total volumes sold and average price of soups.

There are quite a number of financial statements that are associated with the the food and beverage production and services system. These financial statements includes sales records, standard amount and the actual amount of foods and beverages that the establishment sells. The variance analysis is a good tool for planning and enables an establishment to have a grasp of the current costs of food items. Every food service manager must be concerned with the cost of foods including the cost related to the

This paper will dwell on the managerial economic perspective of the maker of Tutor’s Frozen Feasts (TFF). TFF is one of the leading brands of frozen foods for those individuals to wishing to minimize their caloric intake. The data that will aid this assessment includes the demand for TFF from 26 different supermarkets all around the United States for the month of April. In order to make decisions that minimize costs and maximize the profits earned by the company, the manager must put into consideration the effect the independent variables like the item price, price of the major competitor’s products, cost of advertising, and consumer income to mention but a few. The effect of all these variables is measured by calculating the elasticities of all the independent variables in relation to the dependent variable which in this case is the quantity demanded of the microwavable food by TFF. The manager should also take into consideration the effect the independent variables mentioned above will have on the market share of Tiff Frozen Foods in the event the price of their microwavable foods remains constant.

However, the polypropylene industry is a fiercely competitive industry that has a cyclical business cycle with periods of strong sales and periods of oversupply that would lower the overall price that polypropylene could be sold for. To account for worries of oversupply and its effect on price, it is necessary to find the variable cost of producing.   After finding Victoria Chemicals variable cost of producing, the variable costs of all other producers can be obtained.   As can be seen in Exhibit 1, the current variable cost of producing at Victoria Chemicals is GBP 597.38 per ton. The variable cost of producing is highest for the next ten largest plants at GBP 652.19 per ton with a market share of 21%.   It is highly unlikely that these

Cost was a significant competitive weapon in determining share and profits. Efficient short production runs were required in order to avoid inventory build up of customized products. Industry profitability fluctuated widely ranging from -16.7% to 5.0%.

The trend of net sales, in terms of percentage fluctuation, proves that net sales stayed almost exactly the same between 2013 and 2015. As sales increase in the snacks segment due to a higher volume of sales, sales declined in the nut segment due to a decreased volume of sales. Ultimately, this increase of sales in one segment and the decrease of sales in the other segment offset each other to keep net sales nearly the same over the course of the three years.

We used the Consumer Price Index as opposed to using the price data from the Wholesale Price Index as the later measures wholesale price changes whereas we are mainly interested in studying variations in retail or consumer’s purchase prices for the purpose of this project.

In essence, Vives (2001) argued that the price quantity combination will be greatly influenced by the actions and decisions that are made by the rest of the firms in the duopoly market. In other words, the profits that are made by each and every seller are as a result of the actions and decisions that have been reached by each individual seller in the market. The monopoly price that will be charged under this market structure will be as a result of a series of consultations or simply due to individual experiments. For the low-calorie frozen, microwavable food company to maximize its profits there is need to fix its price through an analysis with the assumption in mind that there exists only one firm in the market. In the event one or more of the firms fix their price higher than this price, this firm will make a gain and also if in case it fixes the price lower than the others, it will lose.

The budget for transportation is 85.4, with an actual expense of 153.5, resulting in an unfavourable variance of 68.1%. We assume that if Piele SA has achieved 41% of their sales budget, the units of production shipped is 41%. This leads us to believe there are inefficiencies in transportation that could be due to fuel costs and number of shipments to Italy. Piele SA is using the

Today we can see multiple channels of retailers who are engaged in pricing products very competitively so as to capture maximum market share. Online stores and mobile apps are going one length ahead in providing discounts to customers. The traditional supermarkets have not stayed back in the race and have started offering discounts online which can be collected in their nearby stores as well as in store to keep with the fast paced competition. Many retailers have engaged into providing variant products of the same product type in their stores with reduced rates. It therefore becomes apparent to look into the impact of such pricing on the overall sales in the

However, variable cost can affect the company’s financial statement softly or strongly depending on the number of purchase orders that are processed and other variable costs, like preparing a purchase requisition or creating of new purchase orders. In addition, producing new product catagories may lead to increasing in setting up cost. The company may innitially has enough machines that can produce and be filling drink; however, those current machines may not be compatible for new product catagories (Martin, 2013).