Apple Metro is a Franchisee that has a very strong breakfast program.

Our goal is to identify if we can

bring value to the Apple Metro, by providing them a better priced egg program.

They purchased 1,465 cases of shell eggs in 2013. One case of eggs = 30 dozen or 360 eggs.

Apple Metro currently purchases XL eggs. The contract is for medium sized eggs. Shell eggs are typically
used for any application where the yolk needs to be intact. i.e sunny side up, over easy, etc.

Besides shell eggs, we also contract liquid eggs, which are simply, shell eggs cracked, mixed and
pasteurized. Liquid eggs are best used for scrambled eggs, omelettes, and for use in batters and mixes.

1) Please find out the weight/volume differences between the different sized eggs. (Min. Weight,
Min. Weight Per Dozen, Min. Weight Per 30 Dozen)
a. Small- 1.5 oz, 18 oz, 34 lbs
b. Medium- 1.75 oz, 21 oz, 39.5 lbs
c. Large- 2 oz, 24 oz, 45 lbs
d. Extra Large- 2.25 oz, 27 oz, 50.5 lbs
e. Jumbo- 2.5 oz, 30 oz, 56 lbs
f. Are there guidelines on egg substitution? i.e. does 1 XL egg = 2 Medium eggs?
i. I have found that it makes the biggest difference when recipes require more
eggs. For example, if something required 1 large egg in a recipe, it would not
make a difference if you ended up using a medium or an XL. Moreover, with a
recipe requiring a small number of a specific size, it wont make a substantial
difference if you are at least within one size. Comparing that to a recipe
requiring 5 or 10 large eggs, the total volume and weight difference may end up
changing the final product, in turn requiring the specific egg size in the recipe.
g. How many ounces of liquid egg does it take to equal the following amounts?
i. 1 XL egg = 2 liquid ounces
ii. 2 XL eggs = 4 liquid ounces
iii. 3 XL eggs = 6 liquid ounces
h. How could the different sized eggs impact plate coverage?
-The American Egg Board website may be a good place to start looking.
2) Apple Metro purchased 527,400 XL eggs in 2013.
a. What are the impacts to Apple Metro if they purchase Medium sized eggs instead of XL?
i. Cost of XL = $63,727.50
ii. Cost of Medium = $54,937.50
b. If there is a cost savings of $.20/doz between XL and medium eggs, is it really a cost
savings for Apple Metro?
i. To meet 2013 total egg weight, would cost $70,633.93 for a total of 678,086
medium eggs
ii. To meet 2013 cost, would be able to buy 84,520 more eggs in total if buying
only medium vs. XL
c. Would they need to purchase a different number of mediums eggs to get the same
weight they purchased in 2013?
i. Weight of 527,400 XL Eggs = 74,165.63 lbs
ii. Weight of 527,400 Medium Eggs = 57,684.38 lbs
iii. To meet 2013 total, would need 16,481.25 lbs or 150,686 more medium eggs
3) More costing exercises:
a. How much will Apple Metro spend purchasing 1,465 cases of each of the following
sizes/kinds of eggs?
i. Medium shell eggs = $1.25/doz = $54,937.50
ii. XL shell eggs = $1.45/doz = $63,727.50
iii. Liquid eggs = $.70/lb = $51,915.94
b. How much is the spend if Apple Metro uses 50% shell eggs (assume XL) and 50% liquid
eggs?
i. $57,821.72
c. How much is the spend if Apple Metro uses 25% shell eggs (assume XL) and 75% liquid
eggs?
i. 54,868.84
d. How much is the spend if Apple Metro uses 75% shell eggs (assume XL) and 25% liquid
eggs?
i. $60,774.62