Winery

Winery

Introduction

Golden star winery is a company that specializes in the manufacturing, production and selling of wines. It is a popular brand in the North America region. It also distributes wins into different bars, clubs and restaurant. Pricing decisions on wins is often a complex issue, and requires a comprehensive analysis.

Price

Quantity

Total Revenue

Total Variable Cost

Total Fixed Cost

Total Cost

Profit

$8.00

65, 000

 520, 000

263, 250 

45, 000

308, 250

211, 750

$7.75

75,000

 581, 250

303, 750

45, 000

348, 750 

232, 500

$7.50

80,000

 600,000

324000

 45,000

369, 000

231, 000

$7.25

90,000

 652,500

364,500

 45,000

409, 500

243, 000

$7.00

100,000

 700,000

405,000 

 45,000

450, 000

250, 000

$6.75

115,000

 776,250

465,750

 45,000

510, 750

265, 500

$6.50

120,000

 780,000

486,000

 45,000

531, 000

249, 000

Projected Income Statement (2011)

 Sales (100,000 cases at $7 per case)

 

$700,000

 Cost of goods sold:

 

 

 Materials

$180,000

 

 Labor

$225,000

 

 Fixed manufacturing expenses

$45,000

 

 

 

 

 Administrative and selling ...