Aunt Connie's Cookies- draft

Aunt Connie's Cookies- draft - Aunt Connies Cookies 1 AUNT...

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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 the fundraiser and people like them. 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 who wants to maximize the firm’s contribution margin and operating profits. In the simulation there were several decisions that affected the overall profitability of Aunt Connie’s Cookies business. As the chief operating officer, I will choose the options to run the business success such as decide the sales prices, accept bulk orders, buy a peanut butter manufacturing unit from competitor, and make new favor of Chocorones. First concern is the price which is affected to the demand. Past trends proved that the decreased in sale prices will make the sales volume increased. Therefore, to achieve higher volume the sale price per unit should drop. However, the price must have the contribution margin (CM) greater than the fixed costs to maintain profitability. After using the Simulation, I absorbed the change in price affects to the profit as below - Lemon Crème Price UNIT (1000) UNIT CM TOTAL CM PROFITS 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 - Real Mink Cookies
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Aunt Connie’s Cookies 3 Price UNIT UNIT CM TOTAL CM PROFITS
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Aunt Connie's Cookies- draft - Aunt Connies Cookies 1 AUNT...

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