A Cadbury Creme Egg is an egg-shaped chocolate candy that weighsabout 35 grams, or a little more than 1.2 ounces. It is filled witha white fondant and a smaller amount of yellow fondant, meant tomimic an actual egg. (Fondant is a type of sugar syrup.) In theU.S., Cadbury Creme Eggs are marketed and distributed by TheHershey Company.
The Creme Eggs are produced by Cadbury Adams in Canada and byCadbury UK in the United Kingdom. In the UK factory, 1.5 millionCreme Eggs are manufactured per day. Creme Eggs have been sold inthe U.S. under the Cadbury Creme Egg name since 1971. Creme Eggsare sold every year from New Yearâs Day until Easter.
In 2015, Cadbury changed its formula for the eggs by replacingits Cadbury Dairy Milk chocolate with âstandard cocoa mixchocolate.â The standard chocolate is a less expensive ingredientthan the Cadbury Dairy Milk. The company assured customers that thetaste of the Creme Eggs would not change.
Consumers reacted negatively to the recipe change. Sales ofCadbury Creme Eggs have fallen by more than $14 million since thechocolate substitution; this drop has been speculated to have beencaused by the change in the recipe.
Please address the following in your discussion:
Assume that Cadbury uses standard costing in its manufacturingoperations.
What variance would have been impacted by the decrease in thecost of the chocolate used in the Cadbury eggs?
The variance that would have been impacted by the decrease inthe cost of the chocolate used in the Cadbury eggs
Would this variance have been favorable or unfavorable?
This variance would have been
What position or department within Cadbury would have beenresponsible for that variance?
What variance would have been impacted by the drop in salesrevenue from the recipe change?
Would this variance have been favorable or unfavorable?
What position or department within Cadbury would have beenresponsible for that variance?
Do you think the change in recipe was a good move for Cadbury?Explain.
A Cadbury Creme Egg is an egg-shaped chocolate candy that weighsabout 35 grams, or a little more than 1.2 ounces. It is filled witha white fondant and a smaller amount of yellow fondant, meant tomimic an actual egg. (Fondant is a type of sugar syrup.) In theU.S., Cadbury Creme Eggs are marketed and distributed by TheHershey Company.
The Creme Eggs are produced by Cadbury Adams in Canada and byCadbury UK in the United Kingdom. In the UK factory, 1.5 millionCreme Eggs are manufactured per day. Creme Eggs have been sold inthe U.S. under the Cadbury Creme Egg name since 1971. Creme Eggsare sold every year from New Yearâs Day until Easter.
In 2015, Cadbury changed its formula for the eggs by replacingits Cadbury Dairy Milk chocolate with âstandard cocoa mixchocolate.â The standard chocolate is a less expensive ingredientthan the Cadbury Dairy Milk. The company assured customers that thetaste of the Creme Eggs would not change.
Consumers reacted negatively to the recipe change. Sales ofCadbury Creme Eggs have fallen by more than $14 million since thechocolate substitution; this drop has been speculated to have beencaused by the change in the recipe.
Please address the following in your discussion:
Assume that Cadbury uses standard costing in its manufacturingoperations.
What variance would have been impacted by the decrease in thecost of the chocolate used in the Cadbury eggs?
The variance that would have been impacted by the decrease inthe cost of the chocolate used in the Cadbury eggs
Would this variance have been favorable or unfavorable?
This variance would have been
What position or department within Cadbury would have beenresponsible for that variance?
What variance would have been impacted by the drop in salesrevenue from the recipe change?
Would this variance have been favorable or unfavorable?
What position or department within Cadbury would have beenresponsible for that variance?
Do you think the change in recipe was a good move for Cadbury?Explain.
