Background

General Foods was organized along product lines in the United States, with foreign operations under a separate division. Super was a new instant dessert, based on a flavoured, water-soluble, powder. Although four flavours would be offered, it was a estimated that chocolate would account for 80% of total sales. The $200,000 capital investment project request for Super involved $80,000 for building modifications and $120,000 for machinery and equipment. No cost for the key machine was included in the project.

The market:

On the basis of test market experience, General foods expected Super to capture a 10% share of the total dessert market. Eighty percent of this expected Super volume would come from growth in total market share or growth in the powders segment, and 20% would come from erosion of Jell-O sales.

Production Facilities:

Filling and packing equipment to be purchased had a capacity of 1.9 million.

Capital Budgeting Procedure:

Four......

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Title: Super Project
Approximate Word Count: 725
Approximate Pages: 3 (250 words per double-spaced page)

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