Case study 3 : Arctic Insulation
1. Are unit costs per bale rising or falling between 1979 and 1980? Support your answer with
the relevant cost calculations.
The total unit costs per bale in year 1980 is fallen from 1979. In year 1979, total unit
Case study 2 : Golden Bear Markets : Bread Profitability
1.Calculate the annual DPP per linear foot of shelf space for store #5 as a whole.
Preliminary Gross Margin
SKU level Adjustments
Adjusted Gross Margin
Case study 1
3-32 Complexity of Operations and the Effect on Cost
In the mid-1990s, a large consumer goods manufacturer moved its customer-based from
department and specialty stores to mass merchandising in a variety of retail stores, large and