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(Solved): Your company is a wholesaler of Mars candies, and you are responsible for the M&M product line. ...



Your company is a wholesaler of Mars candies, and you are responsible for the M&M product line. Mars has given you some pricing forecast data concerning 2022 product prices and payment terms. You need to determine the break-even points for your facility based on the information detailed below. Plain M&M Analysis: You have identified the following 2024 price points on cases of Plain M&M candies from five different suppliers (variable costs) · Supplier A: 48-count 1.74 oz bags will have a cost of $15.91 per case; transportation costs are $1.52 per case · Supplier B: 48-count 1.74 oz bags will have a cost of $14.75 per case; transportation costs are $1.77 per case · Supplier C: 48-count 1.74 oz bags will have a cost of $15.00 per case; transportation costs are $1.70 per case · Supplier D: 48-count 1.74 oz bags will have a cost of $14.91 per case; transportation costs are $1.98 per case · Supplier E: 48-count 1.74 oz bags will have a cost of $15.65 per case; transportation costs are $1.60 per case Your additional costs are below: · Fixed costs for your warehouse are $4,500,000 annually · The selling price per case is $32.99 · Labor costs (variable cost) for the warehouse are $7.57 per case · Marketing costs (variable cost) for the candy are $3.00 per case Assignment: Part #1: You need to analyze the break-even point for each of the listed supplier options there are five tabs named “Part #1 Supplier A” through “Part #1 Supplier E”. Each tab represents one of the five payment options. Complete the indicated break-even analysis by filling in the indicated columns, cells, and graphs. Remember, every chart must have a title, axis labels, axis titles, and a legend. Determine the supplier option that results in the lowest break-even point based on the number of cases and dollars (** Hint – it should be the same price point option for both the number of cases and dollars). Complete the information on the “Conclusions” tab for Part #1. Part #2: The market has changed. Your VP of sales indicates that the market will support a $36.00 per case selling price. To accomplish this, however, marketing costs will need to be increased by 35%. You need to analyze the break-even point for the option you selected with the lowest break-even point in Part #1. Use the “Part #2” tab in the document for your analysis. Complete the information on the “Conclusion” tab for Part #2. Part #3 – Finally, answer the question on the “Conclusions” tab for Part #3. Indicate which of the five payment options has the lowest break-even point and provide the break-even point in dollars and units. (Option, BEP$, BEPU) Indicate the new break-even point in dollars and units. (BEP$, BEPU) Discuss whether the new BEP increased or decreased.Since the selling price increased and the variable costs increased, explain why the BEPU behaved as you have observed.



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