Analysis: The Best Vanicups

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The best VaniCups, commonly known as, vanilla cupcake that will blow your taste buds out of your mouth is not only a great snack, but it will provide you with lots of energy to help you get through your day. Although it is not the healthiest food option, it always is the “go-to” option, when you have guests over, have a get-together or just want to surprise the family with something sweet and home-made. R&J not only has the best ingredients, but provides your family with the cheapest and most healthy ingredients. R&J specialize in producing the only the finest tasting cupcakes, with a vanilla cake bottom topped with sugary vanilla frosting with sprinkles. In order to find our breakeven point in units, we need to divide our fixed costs by our unit contribution margin. Our fixed costs are $362 and our unit contribution margin is found by computing: unit selling price – unit variable costs. Our variable costs per unit is $1.24, ($0.91 consists of …show more content…
Due to its location and high demand of its products, Supreme Bakery is forced to set the prices of its products significantly higher than the average company. R&J’s mission is to provide its customers with satisfactory customer service and products. Unlike Supreme Bakery, we charge almost 15% less, and guarantee that our product is bigger and better than theirs. Priced at $1.60, Supreme Bakery has competition with R&J who sells their cupcakes for a mere $1.40. In short, customers receive a bigger bang for the buck when they purchase cupcakes from R&J. R&J work tirelessly every day, 8 hours a day and guarantees that their products remain as fresh as they get. Due to this standard, R&J focuses on using the First In First Out method. This FIFO method is efficient and necessary for R&J’s production because the managers of the company understand that cupcakes are edible pieces of food that require fresh

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