Write a complete solution for The Super Project Case. Papers may be a maximum of two double-spaced pages, not including data presented in the paper for substantiation of points that are made in the text portion of the paper. You are required to submit a copy of your paper in MS Word format. Written cases will be graded as follows: Statement of problem 20% Analysis, solution, implementation 60% Organization, grammar, spelling, etc. 20%
The Super Project
1. What are the incremental cash flows for General Foods to use in evaluating the Super project? In particular, how should management deal with issues such as
a) test market expenses?
b) overhead expenses?
c) erosion of Jell-O contribution margin?
d) allocation of charges for the use of excess agglomerator capacity?
2.What insights does sensitivity analysis give into your decision? Which variables is your decision most sensitive to? Could reasonable variation in these variables change your decision?
3.How attractive is the Super project in strategic and competitive terms? What potential
risks and benefits does General Foods incur by either accepting or rejecting the project?