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…

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