Aunt Connie's Cookies

Aunt Connie’s Cookies Simulation
Leah Noparstak
University of Phoenix
aunt connie’s cookies

      The Aunt Connie’s Cookie Simulation focuses on the production of two types of her cookies; real mint and lemon crème. The company, Connie’s Cookies was founded in 1986 after Connie’s friend Maria Villanueva exclaimed that her cookies were so tasteful. Maria convinced Connie that with her wonderful cookie recipes as well as her business acumen and pastry making skills, that she should go into business for herself. Connie not only took Maria’s advice but she also made her the Chief Executive Officer of the family-owned business (University of Phoenix, 2002). Now that Maria is over production, there are important decisions that she has to make in order to bring in higher profits at lower costs, such as; bulk ordering of real mint cookies, the strain of meeting the demands of the consumer, competitor buy out. The prices for both the lemon crème and real mint cookies have increased but that has created a slump in sales and an inevitable decrease of volume of cookies. However, her real mint cookies continue to bring in a greater profit stream than the lemon crème cookies.
      A confectioner from Atlanta has approached Aunt Connie’s Cookies with a bulk order for one million packs of real mint cookies - to be manufactured in one month’s time. One issue however, is that the confectioner will only purchase the cookies at $1.20 per pack rather than the mass market selling price of $1.50 per pack - or nothing at all. An additional issue with this order will be that the company will have to decrease the production volume of their lemon crème cookies which will make the total contribution margin far less than the unit contribution margin of the real mint cookies. The main idea here is to maximize the company’s operating profits and to better to produce more of the product that provides the greater unit contribution margin (University of Phoenix, 2002).