Module 04 Course Project – Special Order Pricing

 

our cookie company is growing but not as rapidly as you would like. You are exploring producing products for businesses. During a recent conversation with the owner of a local car dealership, he offered to buy 500 cookies for a special event in the community. He asked that the cookies be displayed in the shape of a car and he would like the dealership's logo on each cookie. He has agreed that the cookies can be your signature flavor.

The display will cost $200 to build and the logo for each cookie will cost $.03. This is a rush order and may require some overtime. You are required to deliver the cookies to the event and provide a napkin for each cookie.

The business owner would like a deal since he is purchasing so many cookies and you are "getting your name out there". This could potentially lead to more business.

Requirements:

On an Excel spreadsheet, with at least two tabs;

1. Prepare calculations to determine what price you will charge the business owner for the entire project (Tab 1).

After presenting the bid to the business owner, he offered to pay 85% of what you would like to charge.

1. Can you do it for the reduced price and still make a profit? Prepare a new cost analysis assuming the new price (Tab 2). Remember to address fixed

Prepare detailed analysis for each part of the assignment, outlining all your costs and revenues. Clearly explain whether you will take the job at the reduced price or pass on it. Explain why.

Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.

Save your assignment as a Microsoft Excel document. (Mac users, please remember to append the ".xlsx" extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:

Jstudent_exampleproblem_101504

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