PART 1:
Overview: Once you’ve uncovered inefficiencies in sales, you can take a look at average costs and profits to determine where inefficiencies lie in these areas. Again, it is important to know what data to analyze and what tools can be used to do so. It is also important to know how to describe the organizational impacts of the inefficiencies.
Prompt: In this assignment, you will use your findings and raw data from Milestone One to dive deeper into types of wine and distribution centers. You will need to analyze these factors to determine average costs and profits. All of your analyses need to be submitted in an annotated Excel file, and each analysis needs to include a rationale. Specifically, the following critical elements must be addressed: A. Calculate costs of shipping to Portland and Riverside by pallets and frequency. Illustrate your results in a table. Use the bin sizes from Milestone One, Part E. B. Calculate the cost of production for the wine varieties sold in Portland and Riverside. Illustrate your results in a table. C. Generate a labeled table that illustrates gross profit for each variety of wine for each distribution center. Explain why this information is important for informing operation efficiencies. D. Generate a labeled table that shows the profit after state taxes. For Portland, use a tax rate of 6.6% and for Riverside, use 8.8%. E. Provide a summary statement that describes the inefficiencies in the organizational cost and profit analysis, and explain why this information is important for influencing management decisions.
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