Cost Breakdown of Yummy Gum Packaging Options PPT

This PPT slide, part of the 48-slide Relative Cost Position Analysis PowerPoint presentation, presents a detailed analysis of the total packaging costs associated with 3 different types of gum packaging: Five Stick, Big Pack, and Multipack. The structure is clear, breaking down costs into outer wrapping and foil wrapping for each packaging type.

For the Five Stick package, the analysis shows that with 310 million packs produced in 1996, the outer wrapping cost amounts to $2.8 million, calculated by multiplying the number of packs by the cost per outer wrap. The foil wrapping adds another $2 million, leading to a total packaging cost of $4.8 million for this option.

The Big Pack, containing 20 sticks, has a lower production volume of about 71.8 million packs. The outer wrapping cost here is $1 million, while the foil wrapping is slightly higher at $1.9 million, resulting in a total of $2.9 million.

The Multipack, which includes 10 sticks, has the highest production volume at 574.6 million packs. Its outer wrapping cost is $5.9 million, and the foil wrapping is $7.5 million, culminating in a total packaging cost of $13.4 million.

The cumulative total for all packaging types reaches $21.1 million. This analysis effectively highlights the cost implications of different packaging strategies, providing insights into how packaging choices can significantly impact overall expenses. Understanding these costs is crucial for making informed decisions about product packaging and pricing strategies.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Costing Production