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    Analysis of Selling Price and Unit Cost for Profitability

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    Cost-volume-profit analysis as a tool used for decision making.

    The Hershey Corporation:

    Review the Consolidated Statements of Income In Hershey's 2007 annual report (ignore all figures below net income, such as, per share information). Using the spreadsheet below fill in requirements 1 through 4 in the spreadsheet using the following data:

    1. Units Sold

    a. 2005 - 100,000,000 units

    b. 2006 - 100,400,000 units

    c. 2007 - 200,000,000 units

    2. Variable Manufacturing Costs Percentage- 45% of Cost of Sales

    3. Variable Marketing Costs Percentage- 15% of Cost of Sales

    4. Fixed Costs Percentage- 40% of Cost of Sales

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    Solution Summary

    The blue amounts are from the Hershey financial statements. The other amounts are calculated (click on cells) or point to the blue amounts so you can see how I responded to the requirements.