Break-even point of Sammontana

1. Break-evenpointofSammontana http://www.sammontana.it/

2. History Sammontana was founded in 1946 by Romeo Bagnoli, who buys a bar-dairy in Empoli. The name comes from the nearby Sammontana Farm, from which the Bagnoli family buys fresh milk. The dairy started a small production of ice cream, in 1948 the brothers Bagnoli start to produce even ice cream for sale outside the territory of Empoli.The first mechanization of production takes place when the brothers Bagnoli, track equipment useful for developing its business between pieces of machinery of the ice-cream production left by the American army in a scrap warehouse in Genoa. Until 1955 the ice cream is only sold in Sammontana ice cream in Empoli. In 1955 Sammontana began selling ice cream to third parties. The ice cream is delivered in bars and dairies in a metal tin containing six liters of ice cream.In the nineties Sammontana undertakes some actions: • give on loan to traders the refrigerated cabinets for the sale of the unpackagedice cream; • the six-liter jar is replaced by a bowl of cardboard; • a plastic package with the ability of a liter of ice cream.Between the late seventies and early eighties the Sammontana ice cream are distributed in bars almost all Italy and even in the stores of large retailers.

3. ICE CREAM Ice cream is a soft frozen cream made with the insufflation of air. Water is the most abundant ingredient, immediately after we find the sugar. Then come all the ingredients that characterize the different types of ice cream, beginning from milk, to continue with the cream and other types of fats used, and then the ingredients that give flavor and color, such as fruit and cocoa. Mixing The ice cream processing begins with the mixing of the different ingredients and the production of a liquid cream is homogenized, so as to be smooth and creamy. Pasteurization The mixture is then pasteurized, i.e. heat-treated (80-85 ° C) to eliminate any pathogenic organisms present. Cooling After a quick cooling, the liquid is left for half a day at 4 ° C, because all the components can blend the better. Freezing This is followed by freezing at -5 ° C: the mixture is mixed so that the water forms microscopic ice crystals and at the same time the air remains trapped and dispersed in countless bubbles: only in this way the frozen cream is fluffy and light. At this point the ice cream is cooled further, until you get to 25 degrees below zero, it becomes compact. storage After packaged, the ice cream is stored at -18 ° C. For the correct storage of the product is essential to maintain the cold chain scruples: a raised temperature is less risky from the point of view of hygiene but because a partial thawing with refreezing would lead to the formation of large ice crystals that alter the consistency of the ice cream. Ice cream is a product that allows a higher profit during the summer In 1986 our company sponsoring the cycling team Bianchi Sammontana and starts its sponsorship of football teams of Fiorentina and Empoli. This type of advertising permit at the company to be more popular.

4. BREAK-EVENPOINT THE BEP REPRESENTS THE NUMBER OF UNIT THAT I NEED TO COVER COST, HOWEVER TO COVER OUR COST I AM NOT NECESSARYMAKING MONEY. IN FACT IN BEP THE PROFIT IS ZERO THAT MEANS I AM NOT LOSING OR MAKING MONEY.

5. THE FORMULA IS IMPORTANT TO UNDERLINE THAT WE CAN CALCULATE PROFIT WITH THIS FORULA PROFIT = REVENUE – EXPENCES FIXED AND VARIABLE COST EXPENSES CAN BE DIVIDED IN TWO GROUPS: VARIABLE = ARE THE COSTS THAT VARY WITH PRODACTION FIXED = ARE THE COSTS THAT DOESN’T WITH PRODACTION

6. THE CALCULATION Let's calculate the breakeven point in units Bep (unit)= (Fixed costs)/(P-VC) 1000/(1-(0,8-1,2))=2500 And now we can find also the bep in euro Bep (euro)= Bep (unit)*P or (fixed cost)/(1-(p/vc) 2500*1,2=3000

7. https://www.youtube.com/watch?v=yUOI_AnSqHI