Culinarian Cookware

The rise in revenue was rapid starting from the year of operations. The key period of business was from April to September were revenues were equal to 65% of total revenue as the product was seasonal. The basis of forecasting for the year 1981 & 1982 is the expectations of sales by Mr. Turner & Mr. Rose. It is given that total sales were $ 15.80 million in first half of year 1981 and the total sales in 1981 to reach $ 30 million. Profit after tax was expected to be $ 1 million for 1st half and we assumed for the next half, profit will be in proportion to first half & expected to be amounting to $ 0.90 million. For year 1982, the sales expectation by Mr. Rose was around more than $ 71 million &

This initial cost of the startup of this program will be a minimal impact on Kudler Fine Foods. The initial advertisement effort will be done via social media; the companies Facebook page and Twitter account, email and word of mouth. Allowing for a reward system for costumer referrals can be used for current and new customers as the programs is employed and continues to grow. Rajiv and bell argue “customer retention costs are generally lower than customer acquisition costs, companies are better of focusing attention on their more loyal customers especially since the top 20% of customers account for 80% of revenues and often more than 100% of profits” (p. 180, 2003). Kudler Foods could reduce their marketing expenses by using a customer loyalty system through the use of rewards. The sales increase from this program should be reflected by the increase of new customers and the increased returning customers increased spending. The use of seasonal promotions only available to costumers enrolled into the frequent buyers program could also help in increased sales profits.

Kudler Fine Foods has experienced growth in all areas except customer satisfaction with their pricing. By focusing on ways to reduce internal costs then product costs can be lowered enough to appease current customers and attract new ones. The culminating effect of this one action will generate an increase in sales, customer returns, and the overall shopping

Kudler Fine Foods is a gourmet food store which also offers in store parties in order to introduce customers to their products and also teach customers how to prepare their specialty foods. They have expanded to three stores and are continuing to see growth opportunities in their industry. Kudler Fine Foods has planned on contracting with local growers to obtain their produce and now they want to add a catering service. Before they can do so, they must run the possibility fully through a marketing standpoint in order to assure the success of this project. This study will comprise of the opportunities Kudler Fine Food has in its marketing mix that will help them operate a successful catering business.

I think it is obvious in the previous years that the amount the company spends on advertising has a direct effect on the number of sales. According to the projected number of units that are expected to be sold, the company is expecting an increase from 3,400 in year 8 to 3510 in year 9. This is a considerable increase because of the fact that in year 7, there were 4,000 units sold, and in year 8 we saw this drop to 3,400.

Beginning with advertising, promotional, and selling expenses, these have totaled to be $250,696, $273,629, and $244,213 in 2014, 2015, and 2016, in thousands respectively. There are many components included within this genre of expenses. The fixed costs would encompass media advertising, sales and marketing expenses, as well as salary and benefit expenses. When it comes to directly categorizing advertising, knowing which stage the company is in regards to budgeting or accruing the expense throughout the year depends on whether it is fixed or variable. Having a

| (TCO E) In an income statement prepared using the variable costing method, variable selling and administrative expenses would:

The use of 4 P’s, on the other hand, ensures maximizing the resources of the company. When considering price, place, product, and promotion, all aspects of the product/service are considered. Both distributors and customers are emphasized. Equally important, the company’s perspective is taken into account, especially in finding cost-effective ways to make, distribute, and promote products and services. The sales philosophy, which “engages an organization to seek out customers aggressively and persuade them to consume existing offerings,” is part only of the promotion part (Morgan 1996, p.20). This sales philosophy must be combined with cost philosophy, “The only way to improve our profits is to reduce our marketing and production costs,” to safeguard the profitability of products also.

Big Tex wants his new manager (the same one mentioned in part d. above) to oversee a proposed hotel gift shop. The small gift shop will increase his ADR by 1%, his variable costs by 5 %, and his fixed costs by $24,000.

This is because, when the condition of the current market is not doing well, some strategy in considering the increase in the foods price, introducing a new dish should be limited due to the less or limited spending of the customers. The best option to secure and have a constant business growth during these time is to have more promotions and value set meal to attract the customers.

3. Refer to the monthly sales forecasts given in the first Table. Assume that these amounts are realized and that the firm’s customers pay exactly as predicted.

The sales forecast is based on projected levels of demand. All the numbers are expressed

3 variable costs indentified, they are power, operations, material. They are proportional to the revenue intake.

Example - Food prices are increasing dramatically which has become difficult for the hotel to achieve food cost of sales. According to Ionian Hotel Enterprises S.A. standards it is very important for the hotel to deliver high quality of food to guest and meet expectations. It has become inflexible for hotel to control the cost of sales and achieve targeted profit margins. Due to increasing cost and limited budget to spend, it will be a challenge for the hotel to sustain profit margins.

There are different costs that respond to the different activities like variable costs are directly associated with the products sold. The cost behavior patterns of selling, general, administrative, and other operating expenses are determined, and these expenses are budgeted accordingly. For example, sales commissions will be a function of the forecast of either sales dollars or units. The historical pattern of some expenses will be affected by changes in strategy that management may plan for the budget period. In a participative budgeting system, the manager of each department or cost responsibility center will submit the anticipated cost of the department 's planned activities, along with descriptions of the activities and explanations of significant differences from past experience. After review by higher levels of management, and perhaps negotiation, a final budget will be established. Because of the necessity to recognize cost behavior patterns for planning and control purposes, overhead costs will be classified as variable or fixed.