Aunt Connie Cookie Simulation

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Aunt Connie Cookie Simulation Aunt Connie’s Cookies began in 1986. It all started as a fundraiser for her club. She had the business smarts to be able to see the cost and the breakeven point and how many cookies it would take for her to make a profit. Aunt Connie’s Cookies is a family own business, where they have been able to established themselves and have signature cookies branded to them. Aunt Connie’s Cookies is going through a major transformation. From having appointed a new CEO, Maria Villanueva, Connie’s grandniece, to decrease the sales of the signature cookies which are the lemon crème and real mint cookies, after the price was increase. Aunt Connie’s Cookies has also encounter opportunity to grow its profit margin by receiving bulk orders or she can also consider the possibilities of buying and merging another company. Maria will also have to decide on becoming a labor-intensive operations or an equipment-intensive operations. Price Increase Although in the past, when Aunt Connie’s Cookies have increase price, they have seen an increase in profit. But unfortunately, the last increase has drastically decreased the volume of sales of the cookies. Lowering the price of the cookies, will help give a boost in sales, which in turn will show an increase in their profit margin. Although the decrease in price has help boost profits, Maria’s suggestion to increase marketing expenditure was not considered. If Maria’s suggestion would have been put in place it would have resulted in even better profits. Bulk Sales Aunt Connie’s Cookies have received a mass order of cookies to produce within a month’s time from a confectioner from Charlottes. They have to produce an order of a million packs if real mint cookies. Fortunately, Aunt Connie’s Cookies has the infrastructure to be able to meet such order, but the confectioner is willing to only pay $1.20

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