andrew@agcapitalcfo.com
+371 29168958

Bakery & Confectionery Manufacturer

Project Info

Client Bakery/confectionery manufacturer
Skills Full Cost Analysis

Project Description

Question/problem: We have one dominant retailer that takes about 60% of our sales. The buyer was already given the lowest prices but was still asking for special prices in order to launch a sale campaign (to give at least 30% discount). How low can we go?

Solution by AG Capital ⇒ Full cost calculations. We create calculations that allow to model the lowest possible price, depending on the volume of sales (as fixed costs per unit decrease with volume).