Cornerstone Exercise 18.

Cornerstone Exercise 18.2 (Algorithmic)
Costs of Different Customer Classes
Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of $49 per case (a case contains 24 cans of nuts). Kaune sold 155,000 cases last year to the following three classes of customer:
Price per
Supermarkets$64 80,000 Small grocers95 45,000 Convenience stores93 30,000
The supermarkets require special labeling on each can costing $0.02 per can. They order through electronic data interchange (EDI), which costs Kaune about $59,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs $45,000 per year.
The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds $20 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 8 percent of sales. Bad debts expense amounts to 9 percent of sales.
Convenience stores also require special handling that costs $26 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of $12,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of $30,000 per year.
Calculate the total cost per case for each of the three customer classes. Round intermediate calculations and final answers to four decimal places. Use the rounded values for subsequent requirements.
Total Cost Per Case
Supermarkets$ Small grocers$ Convenience stores$
Using the costs from Requirement 1, calculate the profit per case per customer class. Round intermediate computations to four decimal places and final answers to two decimal places.
Profit Percentage Per Case
Supermarkets %Small grocers %Convenience stores %Does the cost analysis support the charging of different prices?

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10