Case Write-Up Instructions and Questions
Show all of your work. If you are making an assumption, state and
iefly explain the reason for the assumption. That can help me follow your approach. Take your time and provide a clear layout for each answer. Upload your case write-up as a Word document with a .docx extension.
Answer the following questions.
1. (60 points) Calculate
eakeven in individual units (not cases) for Good Foods, Inc. in XXXXXXXXXXBe sure to show each step in the
eakeven calculation.
2. (15 points) What is the
eakeven in dollars?
3. (25 points) What market share will Good Foods, Inc. need in order to
eakeven in 2020?
4. (15 bonus points) Calculate
eakeven with a 5% return on sales.
Grading Ru
ic
Student Name: ____________________________________________________
Breakeven (60 points)
Points
Comment
Co
ect formula 10
Categorical
Co
ect selling price 15
Categorical
Co
ect variable costs 15
Categorical
Co
ect fixed costs 15
Partial credit: deduct 5 points for including an inco
ect FC or excluding a legitimate FC
Co
ect math 5
Categorical
total points
Breakeven Dollars (15 points)
Co
ect formula 10
Categorical
Co
ect math 5
Categorical
total points
Breakeven Market Share (25 points)
Co
ect approach 10
Categorical
Co
ect industry sales 10
Deduct 5 points for including additional categories
Co
ect math 5
Categorical
total points
Overall total points
R.O.S. Breakeven (15 bonus points)
Categorical; 5 points if right with wrong % m/u; otherwise 15 or zero
Ovrl total with Bonus
Module Two: Costs, Margins, Markups and Profits
Contribution Margin =
Selling price – Unit variable cost
Cost =
Selling price – $ Markup
Selling Price =
Cost + $ Markup
$ Markup =
% Markup on Cost * Cost
$ Markup =
% Markup on Selling Price * Selling Price
% Margin on Cost =
($Markup / Cost) * 100
% Margin on Selling Price =
($Markup / Selling Price) * 100
% Margin on Cost =
(% Margin on Selling Price / (100% - % Margin on Selling Price)) * 100
% Margin on Selling Price =
(% Margin on Cost / (100 + % Margin on Cost)) * 100
Breakeven Volume =
Fixed Costs / Contribution Margin
Breakeven ROS =
Divide fixed costs by % markup on selling price minus return on sales objective
Return on Sales =
(Total Revenue – Total Costs) / Total Revenue
Pricing
Elasticity =
% ∆ in Quantity Demanded / % ∆ in Price, where
% ∆ in Quantity Demanded = (Q2 – Q1) / Q1
% ∆ in Price = (P2 – P1) / P1
Optimal Price =
(Maximum Reservation Price + Unit Variable Costs) / 2
Elasticity at Optimal Price =
1 / (% Mark-Up on Selling Price)
Total Contribution Margin =
(price – variable cost) * quantity.
Module One
Market Share =
Company Sales Revenue / Market Sales Revenue
Market Share =
Penetration share X Share of Requirements X Heavy usage index
Relative Market Share =
Company’s Market Share / Largest Competitor’s Market Share
Market Penetration =
# of Customers who Buy at Least Once in the Category /
Target Population
Brand Penetration =
# of Customers who Buy our Brand at Least Once /
Target Population
Penetration Share =
Brand Penetration / Market Penetration
Share of Requirements =
Brand Purchases / Total Category Purchases by Brand Buyers
Heavy Usage Index =
Average Category Purchase by Brand Customers
Average Category Purchases by all Customers
Brand Development Index =
% of Brand Sales to Target Market
% of Total Market Population in Target Market
or
Average Brand Sales in Target Segment /
Average Brand Sales in Total Market
Category Development Index =
% of Category Sales to Target Market
% of Total Market Population in Target Market
Module Two
Contribution Margin =
Selling price – Unit variable cost
Cost =
Selling price – $ Markup
Selling Price =
Cost + $ Markup
$ Markup =
% Markup on Cost * Cost
$ Markup =
% Markup on Selling Price * Selling Price
% Markup on Cost =
($ Markup / Cost) * 100
% Markup on Selling Price =
($ Markup / Selling Price) * 100
% Markup on Cost =
(% Markup on Selling Price / (100% - % Markup on Selling Price)
% Markup on Selling Price =
(% Markup on Cost / (100 + % Markup on Cost)
Case Write-Up Instructions and Questions
Show all of your work. If you are making an assumption, state and
iefly explain the reason for the assumption. That can help me follow your approach. Take your time and provide a clear layout for each answer. Upload your case write-up as a Word document with a .docx extension.
Answer the following questions.
1. (60 points) Calculate
eakeven in individual units (not cases) for Good Foods, Inc. in XXXXXXXXXXBe sure to show each step in the
eakeven calculation.
2. (15 points) What is the
eakeven in dollars?
3. (25 points) What market share will Good Foods, Inc. need in order to
eakeven in 2020?
4. (15 bonus points) Calculate
eakeven with a 5% return on sales.