Classic needs to evaluate in this light Multiplied manufacturing facility cost

Classic needs to evaluate in this light multiplied

This preview shows page 6 - 9 out of 9 pages.

price is like to bypass 50% of a box. Classic needs to evaluate in this light. Multiplied manufacturing facility cost interprets into the standard value of a box of the latest product up with the aid of almost 22%, assuming different prices like ingredients, packaging etc. equal as present products. 6
Image of page 6
Hockley Valley Brewing Co., Inc 4. Moreover, Managers or entrepreneurs need to hold in thoughts approximately the affording capability in their goal marketplace. Consistent with Datar & Rajan, clients, competition and prices impact charge of product to a large extent. Breweries have control over their pricing so long as they're in the minimal criminal range set with the aid of the authorities. Presently, other Hockley products priced between $ 2.55 and$ 2.75 in line with 473 ml can. After thru competitor’s evaluation and maintaining in mind approximately the charge range ($2.65- $2.85) of the opposite lagers, the advocated charge for Hockley classic became $2.55, little much less than its different competing opposite numbers so that it can attract extra customers. Unit Selling Price= $ 2.55 Variable Costs = $ 1.97/can Therefore, % = ($2.55 - $ 1.97) * 100/ $ 2.55 = 23% 7
Image of page 7
Hockley Valley Brewing Co., Inc 5. The manufacturing unit manufacturing price is the very best element of beer fee manufacturing. Unit contribution, % of promoting rate available to set off overhead costs like advertising and marketing, LCBO charges. Unit Selling Price = $ 2.55 Variable Costs = $ 1.97/can Therefore, % = ($2.55 - $ 1.97) * 100/ $ 2.55 = 23% The Beer Store’s outlets, budget outlay required = $ 3000 + ($ 275*50) = $ 16,750 Unit contribution of 23% sales price is $ 2.55= $ 0.59 Therefore, = 28,500 8
Image of page 8
Hockley Valley Brewing Co., Inc References: 1. Retrieved from Datar, S., & Rajan, M. (2014). Making decisions and motivating performance. Upper Saddle River, NJ: Pearson. 2. Casey, Q. (2016, May 25) Retrieved from Financial Post: - suite/molson-coors-ushers-in-a-new-era- for-canadas-oldest-brewery 3. Elizabeth M.A. Grasby, Ian Dunn, Hockley Valley Brewing Co. Inc. Case Study Analysis & Solution. - hockley -valley-brewing-co-- inc-.php 9
Image of page 9

You've reached the end of your free preview.

Want to read all 9 pages?

  • Spring '17
  • Brewing, Brewery, Hockley Valley Brewing Co.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture