Midwest Ice Cream Company

The first step establishes standards for selling price, variable expenses, and marginal section per gallon. All the manufacturing cost items for each product argon listed at the beginning, and then totaled. Next the dogged marketing cost are added in and totaled, then added to the manufacturing cost to recall the total variable costs for each unit produced. Selling price is shown and under this is the marginal contribution before packaging. Then packaging is shown and the subtracted to give the marginal contribution. Management other than waste of each does not control the costs of all the above items. The only censure is the marketing cost that the management sets to what they believe is appropriate to the cost.

gait number two is the forecast of ice cream gross sales in gallons.



The numbers are collected from the previous months and figure with the other factors such as the general economic conditions in the marketing area, weather, anticipated promotions, competition, number of Fridays and Mondays in the period, and perhaps veritable(a) the age and culture of the marketing area.

Step three involves the budgeting of fixed expenses. These numbers are calculated from both the sales forecast, governmental laws, past operations, and common expenses that dont change much as operations continue over time.

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