Cases in Cost Management 3rd Edition by John Shank

Exercise 6

One key issue in profit per unit of shelf space is the efficiency of package design. A loaf of bread at 4" × 5" × 9.6" is not an efficient package size when shelves are 24" deep. Assume the bread loaf could be changed to 4" × 4" × 12" (same bread volume per loaf). Calculate the impact on annual Profit for Store #5. Make all your assumptions explicit.