Essay on Aunt Connie's Cookies Contribution Margin and Breakeven Analysis

Essay on Aunt Connie's Cookies Contribution Margin and Breakeven Analysis

Length: 1489 words (4.3 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Aunt Connie's Cookies Contribution Margin and Breakeven Analysis

Aunt Connie's Cookies is a brand that is synonymous with delicious Lemon Cream and real Mint Cookies throughout the East and Midwest. Aunt Connie's Cookies was founded in 1986 after a friend of Aunt Connie urged her to take her business and baking skills to the public. The Aunt Connie's brand has grown successful producing Lemon Crème and Real Mint cookies. Maria Villanueva is the current chief executive officer of this family owned company.
Maria was considering a large bulk order of a cookie production, competitor buyouts and the strain of meeting cookie demand and operating as a profitable entity. Maria has to make a decision to:
1. Make or buy
2. Sell or process further
3. Retain or replace equipment
4. Eliminate an unprofitable business segment
5. Allocate limited resources
The concept of contribution is important for the decision to be made. Real Mint provides a greater total contribution margin while Lemon Crème provides the greater Unit Contribution Margin.
To be able to take the order, one or both of the cookie productions will need to be reduced in order for that energy to go towards filling the bulk order. The main idea here is to maximize the operating profits because it is better to produce more of the product that provides the greater unit contribution margin. By keeping Lemon Crème cookies operating at the same level, no unnecessary operating profits would be lost and the increased order for Real Mint provides a greater revenue amount than would have been during a normal production month.
If the bulk order had been for the Lemon Crème cookies it may have been more difficult to reach and end result that is as desirable. The Real Mint...


... middle of paper ...


...The three key learning points that are identified are breakeven, variable cost, and fixed cost will be of importance in the decision making because Mr. Shultz needs to know how many items he must sell before he can see the profits of each store. Variable cost is important because cost affect profitability and details the management strategies to enhance profits. Finally fixed costs are important because it must be paid irrespective of sales volumes. Fixed costs include, but are not limited to, overheads (rent, insurance, and such) but can include direct costs such as payroll. The overall importance of breakeven, variable cost and fixed cost are equally important to any business decision making.



Reference

Datamonitor. (January 2005). Starbucks Corporation. Retrieved September 22, 2006 from, http://www.investor.reuters.com from University of Phoenix Library.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Mrs. Connie Kareem ( Connie )

- Mrs. Connie Kareem (Connie) a happy 68 year old agreed to be the subject of the interview and the reflection paper. We attend the same church and have enjoyed sharing casual conversations from time to time. I chose to interview her because of the apparent ageless approach to life that she exhibits. Her timeless humor is refreshing as she embraces every moment of life by living it with an optimistic enthusiasm. When I arrived at her home for the interview, she directed me to the kitchen. In preparation of our meeting, she had prepared refreshments of homemade cake and a pot of coffee....   [tags: Interpersonal relationship, Family]

Powerful Essays
858 words (2.5 pages)

Essay about Summary Of ' My Great Aunt Naomi '

- As Aunt Colleen told the story, my great aunt Naomi, was considered a lazy woman by her family because she didn’t keep a clean home. To them it was no wonder that she lost her husband to a woman who kept a clean house. Naomi’s sister, Ruth, was jealous. Ruth made a novena to the Virgin, asking for Naomi’s teeth to rot, but Naomi lived to old age and never lost her teeth or her beauty. It was said about her that even in her seventies she looked middle age. Her family attributed her health in old age to a pact that she made with the devil....   [tags: Family, Aunt, Uncle, Butcher]

Powerful Essays
1071 words (3.1 pages)

Oppression in Aunt Jennifer’s Tigers Essay

- Oppression in Aunt Jennifer’s Tigers Composed in three carefully rhymed stanzas, the poem can firstly seem an homage to the speaker’s skills in stitching a panel with tigers. However, a detailed reading reveals images and symbols that suggest a relation of oppression concerning Aunt Jennifer and her husband. The tigers of Aunt Jennifer’s stitchings are representative of her free spirit, how she pines for freedom from her burdensome husband. The “bright topaz denizens of green” evokes the mental image of majestic tigers not bound by the whims of another being....   [tags: Aunt Jennifer’s Tigers Adrienne Rich]

Powerful Essays
630 words (1.8 pages)

Using The Capstone Courier Report Data For Years 2014- 2022 ( Simulation Rounds )

- Results As previously discussed, contribution margins identify how much is available from the sale of each unit that can be used to pay for variable cost and fixed costs and still provide a profit for the company (Merritt, 2014). While conducting research and completing the Capsim Management Simulation experiment, quantitative data has been assessed to aid in determining if a high contribution rate leads to profitability. Using the Capstone Courier Report data for years 2014- 2022 (simulation rounds 1-8); team Chester had the following contribution margins which are presented in the graph and table provided below....   [tags: Variable cost, Costs, Contribution margin, Cost]

Powerful Essays
1002 words (2.9 pages)

Analysis Of Richmont Terrace 's Memory Care Community Essay

- Break-Even Analysis BHMC 413 Fiscal Management Riley Putnam Professor Anthony Geron Abstract The purpose of this paper is to show how to calculate the break-even point for an organization. Richmont Terrace’s memory care community will be used as the sample organization to help explain how to find the break-even point in Richmont Terrace’s memory care community. This paper will also discuss how the break-even analysis information can be useful for the organization when the managers look at planning and budgeting....   [tags: Variable cost, Costs, Contribution margin, Cost]

Powerful Essays
706 words (2 pages)

Aunt Jennifer's Tigers by Adrienne Rich Essay

- Aunt Jennifer's Tigers by Adrienne Rich Who is Aunt Jennifer. Does she even exist. I had to ask myself these questions before even going further into the poem. The answers opened the door to a deeper meaning behind Aunt Jennifer's Tigers. Based on Adrienne Rich's background I believe Aunt Jennifer did exist. However, Aunt Jennifer was not Rich's aunt. Aunt Jennifer represented women all over the world, particularly women in American, who were caught under the oppressive hand of a patriarchal society....   [tags: Aunt Jennifer's Tigers]

Powerful Essays
1074 words (3.1 pages)

Essay on Contribution of The League of Nations to International Administration

- The Contribution Of The League of Nations To The Development of International Administration Introduction International administration has similarities to national administration which is commonly known as public administration. National administration is the study of the bureaucracy of government structure and organisation while international administration is also the study of organisation but unlike national administration the organisation are international and are independent of the state....   [tags: Developing Administration, Contributions]

Powerful Essays
1574 words (4.5 pages)

The Use of Symbols in Adrienne Rich's Poem, Aunt Jennifer's Tigers Essay

- The Use of Symbols in Adrienne Rich's Poem, Aunt Jennifer's Tigers Freedom has always been an important value in the United States that most people are not willing to give up. Ralph Waldo Emerson, a writer who lived in the 1800s, reminded Americans of their rights of liberty at a time when many people started to conform to established norms. He voiced his opinions about the loss of freedom and invited society to realize that they were relinquishing their rights. Years later, his views still had an impact on citizens....   [tags: Aunt Jennifers Tigers Essays]

Powerful Essays
817 words (2.3 pages)

Connie´s Coming of Age Essay

- M K Cantrell D. Hicks English 1102 6 November 2013 Connie’s Coming of Age In her famous short story, “Where Are You Going, Where Have You Been,” Joyce Carol Oates shows the transition from childhood to adulthood through her character Connie. Each person experiences this transition in their own way and time. For some it is leaving home for the first time to go to college, for others it might be having to step up to a leadership position. No matter what, this transition affects everyone; it just happens to everyone differently....   [tags: Joyce Carol Oates, childhood, adulthood]

Powerful Essays
1245 words (3.6 pages)

Connie's World Essay

- Joyce Carol Oates began her short story, “Where Are You Going, Where Have You Been?,” with a 15 year old girl named Connie whose mother that had always compared her to her sister June. This gave the reader a chance to establish a connection with Connie. Since almost every teenager has felt a comparison to another sibling at least once in their life, unless they were an only child, but then they were probably compared to family friend’s child. Her mother would say things like “Why don’t you keep your room clean like your sister?” or “How’ve you got your hair fixed – what the hell stinks....   [tags: Literary Analysis ]

Powerful Essays
1098 words (3.1 pages)