1) Based on the information and assumptions provided in the case, calculate the market

potential for frozen biscuit sales in the following markets: a) New England States and New York,
and b) Atlantic Canada.
Ans.
Frozen Biscuit Market Potential = (Per capita frozen biscuit dough sales * Population) * (Value
add ratio from dough to biscuit)

a) New England States:

Frozen Biscuit Market Potential = ($14.33 * 13,922,517) * (7.78/6.24) = $248,747,631 per year

b) New York:
Frozen Biscuit Market Potential = ($14.33 * 18,976,457) * (7.78/6.24) = $339,044,207 per year

c) Atlantic Canada
Frozen Biscuit Market Potential = ($12.2 * 2,285,729) * (7.78/6.24)
= $34,767,989 per year (i.e $40,330,867 CAD)

2) Prepare a sales forecast for Year 1 for By-The-Sea Biscuit Company for both the
Northeastern US and Atlantic Canadian markets. Assume the company negotiates a distribution
agreement with Price Chopper in the six New England States/New York market and with Co-op
Atlantic in Atlantic Canada.

3) Would you recommend that Finney and Jobe proceed with their plan to start By-The-Sea
Biscuit Company?