Explore BrainMass

Analysis of Selling Price and Unit Cost for Profitability

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

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

© BrainMass Inc. brainmass.com September 26, 2018, 4:57 am ad1c9bdddf - https://brainmass.com/business/profitability-index/analysis-of-selling-price-and-unit-cost-for-profitability-371392


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.