Aunt Connie's Cookies

Aunt Connie's Cookies - AuntConniesCookies 1 AUNT CONNIE'S...

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Aunt Connie’s Cookies  1 AUNT CONNIE'S COOKIES Lien Bach University of Phoenix Accounting--ACC/561
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Aunt Connie’s Cookies  2 Connie Rocha started her business—Aunt Connie’s Cookies—in 1986 after making cookies for a fundraiser event and receiving a great deal of positive feedback. According to Aunt Connie Simulation, “Aunt Connie’s Cookies sells lemon crème and real mint cookies throughout the east and the mid-west”. Maria Villanueva is the chief officer whose goal is to maximize the firm’s contribution margin and operating profits. As showed in the simulation, several decisions affect the overall profitability of Aunt Connie’s Cookies business. As a chief operating officer, to run the business success, I will exercise the best strategy which emphases on deciding the sales prices, accepting bulk orders, acquiring a peanut butter manufacturing unit from competitor, and adding new favor of Chocorones. Price is the first concern because it has direct affects to demand. Past trends proved that decreased in sale prices results in sales volume increased; therefore, to achieve a higher sale volume, sale price per unit should drop in a considerable margin. This mean price must have contribution margin (CM) greater than fixed costs to maintain profitability. After using the Simulation, I absorbed changes in price affects to the profit as below. - Lemon Crème Price UNIT (1000) UNIT CM TOTAL CM (1000) PROFITS (1000) 2 800 .94 752 482 1.93 884 .84 769 499 1.86 968 .79 774 504 1.79 1,052 0.73 768 498 1.72 1,136 .66 750 480
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Aunt Connie’s Cookies  3 - Real Mink Cookies Price UNIT
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This note was uploaded on 10/05/2010 for the course ACC ACC561 taught by Professor David during the Spring '10 term at University of Phoenix.

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Aunt Connie's Cookies - AuntConniesCookies 1 AUNT CONNIE'S...

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