This case considers the decision-making of the owner of the company "FOOD, S.A.", he wishes to expand his market niche. Currently the company is producing with 75% of its capacity, for which it asks you to make a proposal for a possible expansion of the business. FIXED COSTS: The monthly fixed costs are: Rent of premises for the sale of the product $ 500.00 * Water, electricity, telephone and Internet: $ 125.00 Maintenance of production equipment $ 100.00 Digital Marketing $ 60.00 Sanitation of the work area $ 45.00 A dealer $ 500.00 other costs $ 50.00 It is important to consider that the costs (*) vary in some months. COST VARIABLES: The Company produces approximately 10,000 cheeses a week, working Monday through Saturday for an average of 8 hours per day. Sales staff costs (2 people) 400.00 per month each + 1% commission according to sales volume Production staff costs (2 people) $ 600.00 per month each Production costs of 100 units $ 75.00 Average cost of packaging $ 0.15 per unit INCOME The company sells 95% of what is produced per week. Sellers are paid 1% commission if sales stay above 90%. The costs of sales staff (See variable costs). The cost per unit is $ 0.75. Average purchase by the 20 distributors and they do not make returns: 300 units each. Retail Price $ 2.25 per unit selling price on the premises $ 2.75 per unit Local sales: 3,600 to 4,000 cheeses per week Average number of customers who shop at the store: 1,800 UTILITIES You are asked to do the calculations for total income, total costs, total profit, economic profit. With the data provided, what would be your improvement proposal?

Answer rating: 100% (QA)

Calculatipn of total costs Fixed costs Rent of premises 500 Water elect... View the full answer