DRIVER DATA

Regular Special Total

Number of meals 120,950 79,600 200,550
Number of purchase orders 150 500 650
Special ingredients per meal 2 8 10
Number of trips 17,279 79,600 96,879

Exhibit 1
Eat Healthy, Live Healthy
Cost Accounting Data
Total Costs
Ingredients 4,262,000
Packaging materials 570,000
Kitchen labor (prep and line) 3,480,000
Overhead
Admin and General 7,645,000
Occupancy 1,700,000
Total 17,657,000

Per meal costs Regular Special

Ingredients 12.0 35.3
Packaging materials 2.8 2.8
Kitchen labor (prep and
15.0 20.9
line)
Total direct costs 29.8 59.0
Admin and General 33.0 45.9 220%
Occupancy 6.1 12.1 21%
Total 68.9 117.0
Price 82.6 140.4 120%
Number of meals 120,950 79,600 200,550
Total revenue 9,994,921 11,177,015 21,171,936
Total cost 8,329,101 9,314,179 17,643,280
1,665,820 1,862,836 3,528,656

Exhibit 2
Eat Healthy, Live Healthy
New Cost Pools
% of Total Cost
Before After Before
Ingredients 4,262,000 4,262,000 24%
Packaging materials 570,000 570,000 3%
Kitchen labor (prep and line) 3,480,000 3,480,000 20%
Overhead
Admin and General 7,645,000 3,170,000 43%
Occupancy 1,700,000 1,700,000 10%
Purchasing 1,325,000
Dieticians 1,210,000
Delivery . 1,940,000 .
Total 17,657,000 17,657,000 100%

Per Unit Cost

Regular Special
Ingredients 12.0 35.3
Packaging materials 2.8 2.8
Kitchen labor (prep and line) 15.0 20.9
Total Direct Cost 29.8 59.0
Overhead
Admin and General 13.7 19.0 3,168,078
Occupancy 6.1 12.1
Purchasing 2.5 12.8
Dieticians 2.0 12.2
Delivery 2.9 20.0
Total Overheads 27.2 76.1
Total 57.0 135.1
Price 68.3 162.2
Number of meals 120,950 79,600 200,550
Total Revenue 8,266,226 12,907,466 21,173,692
Total Cost 6,888,522 10,756,221 17,644,743
Gross Profit 1,377,704 2,151,244 3,528,949

Price Discrepancy (14.3) 21.8

% Change -17% 15%
 Direct Costs
Ingredients
purchasing Kitchen Labor Prep Staff Line Staff
dietitians Packing material
delivery Indirect Costs
A&G admin purchasing drivers dietitians
Occupancy rent utilities cleaning

of kitchen labor
of direct labor

of total cost

% of Total Cost
After
24%
3%
20%

18% 91% of kitchen labor

10%
8%
 7%
11%
100%

1,922
0.1%