How many additional bottles would have to be sold in organic stores for this distribution channel to
Question:
How many additional bottles would have to be sold in organic stores for this distribution channel to be commendable?
The company plans to develop local distribution by hiring a part-time person. This arrival will increase the specific charges of the on-site sale by €1,200.00 per month.
The communication actions that will be put in place will produce the volume on the spot on all the distribution channels.
We consider the hypothesis that the volumes of beer sold per semester in organic stores (A) and on-site (B) will be independent random variables that follow a normal law.
- A: half-yearly demand for beers in organic stores is a random variable with a mean of 16,000 and a standard deviation of 580.
- B: half-yearly demand for on-site beers is a random variable with a mean of 8,000 and a standard deviation of 210.
Half-year beer sales:
▪ ORGANIC store: 12,000
▪ Manufacturing site: 4,000
Variable production costs: €1.80 per bottle
Variable distribution costs:
▪ ORGANIC store: €1.00 per bottle
▪ Manufacturing site: €0.20 per bottle
Fixed distribution costs:
▪ ORGANIC store: €11,500.00
▪ Manufacturing site: €1,000.00
The general costs are €5,000.00 per semester.
Beers, regardless of the mode of distribution, are sold for €3.60.
Managerial Accounting An Integrative Approach
ISBN: 9780999500491
2nd Edition
Authors: C J Mcnair Connoly, Kenneth Merchant