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How much money would they make from the bagels, chips, and cookies? In its...

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How much money would they make from the bagels, chips, and cookies?

In its first year of operations, all HLG sales would be made to Loblaws on credit. HLG agreed to offer Loblaws credit terms of net 60. Loblaws would purchase quantities of Nutrifusion powder for use in its production of cookies, bagels and potato chips. Although there was no guarantee of sales volumes, Loblaws and HLG estimated first-year sales based on a combination of U.S. data and Loblaws' experience in launching new products. Together, the companies estimated that first-year sales would be 36,500 packages of the Nutrifusion cookies, 50,000 bagels and 28,000 bags of potato chips. Loblaws production requirements called for 10 grams of Nutrifusion for each package of cookies and potato chips and five grams of Nutrifusion for each bagel. HLG would sell the Nutrifusion powder in bulk to Loblaws at $19.99 per 100-gram package

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