Mr.

Brown cost structure

Major Products at Mr. Brown
Dry/Cream less Cake

Raw material cost (%)

30

Snacks

40

Cakes & Pastry

45

Bread

50

Fast food

40

Chocolate

40

Rusks

45

On an average raw material cost for all above mentioned products are 45%. Apart
from raw material there are following costs which Mr. Brown incur:
Other expenses
Average raw material cost for all
products
Fuel
Maintenance
Wastage/Spillage
Packing cost
Salary
Legal expense
Taxes
Promotion

Cost (%)
45
6
5
2
5
5
7
21
4

Maximum sales come from pasties and cake. Sales break up is given below:
Products
Cake & Pastries
Bread
Beverage
Chocolate
Fast food
Snacks
Cookies

Sales (%)
40
10-14
2.5
2
10
10
20-25

Assortment:
Product
Cake & Pastries
Cookies
Snacks & chocolates
Bread

No. of counter(3 Rack in each

counter)
1
2
1
1

Length
6
6
6
6

ft.
ft.
ft.
ft.

The assortment is keep on changing based on season and sales. Planogram has
been used by Mr. Brown presently for assortment. Bread counter is located near
cash counter for convenience.