Red Brand-Case Solusion
908 words
4 pages
Information: Amount of incoming tomatoes: 3,000,000 pounds Grade A:20%×3,000,000 = 600,000 pounds Grade B:80%×3,000,000 = 2,400,000 pounds Product Selling Price Per Case Demand Forecast (Cases)(1) Pounds Per Case(2) Total weight in pounds(1)*(2)Minimum Quality requirement
Whole tomatoes $4.00 800,000 18 14,400,000
8 $1.48
Tomato juice $4.50 50,000 20 1,000,000
6 $1.32
Tomato paste $3.80 80,000 25 2,000,000
5 $1.85
Contribution per case (3) Contribution per pound (excl Tomato cost) (3)/(2)
$0.082
$0.066
$0.074
WA = Pounds of A-grade tomatoes in canned whole tomatoes.. WB = Pounds of B-grade tomatoes in canned whole tomatoes. JA = Pounds of A-grade tomatoes in tomato juice. JB = Pounds of B-grade tomatoes in