Our Services

Get 15% Discount on your First Order

[rank_math_breadcrumb]

Operating Leverage and Performance

Competency

Analyze leverage and activity ratios to review operating performance across organizations.

Student Success Criteria

View the grading rubric for this deliverable by selecting the “This item is graded with a rubric” link, which is located in the Details & Information pane.

Scenario

At a recent get together, a longtime friend brought various types of cookies as a dessert. You had never tasted cookies of this high caliber before. Your friend never thought anything special of the cookies, given she has been baking these since she was a small child. You shared that “Cookies from Home,” a profitable company based in Tempe, Arizona, started with the encouragement of friends. Intrigued, your friend stated she would like to learn more. She would like some assistance understanding how to start and operate a business of this nature.

In exchange for a 2% ownership in the company, you agree to help her develop a business plan to start her own business baking, marketing, and selling these cookies. The plan should include the following:

  • Fixed costs such as equipment, factory rent, insurance, depreciation, etc.
  • Variable costs such as direct materials (ingredients to make the cookie), direct labor (salaries), and overhead (utilities, maintenance, etc.)
  • Keep in mind that you will need to determine how many cookies are in one batch and estimate the yearly number of batches to sell.
Instructions
  • Use the following template for your work:

Module 4 Deliverable – Proforma Income Statement Template.xlsx

  • Write the startup/operating costs portion of the business plan for this company addressing the following:
  • Explain the process of determining the breakeven point for a business.
  • Estimate monthly fixed costs to establish this company, including equipment, rent, insurance, and other fixed costs.
  • Estimate variable costs per batch of cookies, identifying all variable costs.
  • Given the estimated costs, calculate the breakeven point and identify the required sales revenue to reach this point.
  • Based on the costs identified above, develop a realistic proforma income statement of a profitable business venture which would pay your friend a salary of $ 50,000 per year.

NOTE – Be sure the documents display proper grammar, spelling, punctuation, and sentence structure.

Assessment Requirements/Submission Requirement:
  • Proforma Income Statement
  • Startup/operating costs written portion of the business plan.

A – 4 – Mastery

Accurately and eloquently explains the process of determining the breakeven point for a business.

A – 4 – Mastery

Accurately estimates monthly fixed costs including equipment, rent, insurance, etc.

A – 4 – Mastery

Accurately identifies all variable costs per batch of cookies.

A – 4 – Mastery

Accurately calculates the breakeven point and identifies required sales revenue to reach breakeven.

A – 4 – Mastery

Precise and accurate proforma income statement resulting in a highly accurate projection.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

HRM 6303 V DB 2

2 Training and Development HRM 6303 Unit V DB Reply 2 A Response post to be a minimum of 250 words in length and at least one supporting reference. Top of Form A culture creates context for behavior by providing reinforcements and punishments for each discrete behavior. Recognizing this helps

HRM 6303 V DB 1

2 Training and Development HRM 6303 Unit V DB Reply 1 A Response post to be a minimum of 250 words in length and at least one supporting reference. Top of Form In learning, the best way for me is to study the material voraciously. The more difficult the better

ACC 5301 VIII

2 Management Applications of Accounting ACC 5301 Unit VIII Journal This journal measures your mastery of ULOs 2.8, 2.9, and 4.2. ABC Corporation has 3 plants across the United States in 3 different regions consisting of East, Central, and West. Last year, each plant purchased new equipment for their plants,

Business, Govt & Society

Please prepare slide for representatives, include the superintendent for the school district, their headshot, and qualifications on Santa Clara county San Francisco

Benchmark – Budgeting and Planning

  Part 1: Addressing the Key Questions From the Case Read Case 9-26 “Performance Report With More Than One Cost Driver,” located in Chapter 9 of the textbook. Use Exhibit 9-11 as a model. Consider the characteristics of a flexible budget and how it might minimize the deficiencies of the

3-2 Milestone One: Draft of Introduction

  In this assignment, you will enhance your skills and knowledge of techniques in various communications to lead change, develop and maintain relationships, and address sources of conflict through effective communications tied to organizational goals and core visions. Through the development of a strategic communication plan, you will gain comprehensive,

3-1 Discussion: Interpersonal Communications in the Workplace

 As you study the Module Three resources, make connections between the concepts presented and your own experiences. Share a workplace experience you have had that relates to the concepts presented in the textbook reading. Explain what barriers there were to communication at play—different perceptions of a situation, filtering, language, jargon

Personal and Professional Codes of Ethics

In this week’s study, you reviewed the APHA Code of EthicsLinks to an external site.. Consider it and how you approach ethical questions as you discuss the following: What are the key aspects of your ethical code (e.g., faith, integrity, principles)? Where does your ethical code originate from (e.g., parents,

week 8

 your organization and leaders through the Kouzes and Posner   Goal: Create a reflective 10-slide PowerPoint presentation that briefly summarizes what you have learned throughout this course. Instructions: Throughout the course, you have encountered definitions and theories related to leadership. You have also examined your organization and leaders through the Kouzes

chapter 12

Read Chapter 12 and answer the questions below. 1. Do you believe that union shop agreements are violations of a worker’s freedom of choice in the workplace? Do you think open shop agreements unfairly penalize workers who pay dues to union the have elected to represent them in the workplace?

Leas – 5

The Executive Memo Review the following video. Note: I have extended the due date on this for the Thanksgiving Holiday Weekend. However, if you can front-load your week and knock it out, that would be better! Instructions Complete the following for this week’s assignment. 1. Listen to the video on

MIS – 5

Back Week 5: Course Project Part 2: Value Proposition and MVP Design Due Dec 01 by 1:59am Points 125 Introduction Now that you’ve spent time exploring your users and synthesizing insights, it’s time to shift from understanding the problem to designing a solution. In this project assignment, you’ll articulate your

Business Finance – Economics homework

see attached Use this reference for below questions. Brickley, J.A., Smith, C.W., & Zimmerman, J.L. (2021). Managerial economics and organizational architecture (7th ed.). New York: McGraw Hill/Irwin. HOMEWORK 1: 1 page with 2 references: W. Edwards Deming, often referred to as the leading quality guru in the United States, and

Econ Excel Project $25

Please see instructions and excel spreadsheet attached . $25 is all i have. Cannot increase. Excel spread sheet attached Academic major upon graduation: Health Information Management Instructions Follow the steps below.  1.   You need to prepare a 12-month Cash Budget for yourself. Use the excel template attached. 2.    To do this, you

Graduate diploma management

STUDENT VERSION LEAD STRATEGIC TRANSFORMATION BSBLDR811 PROJECT PORTFOLIO Student name: Assessor: Date: Business this assessment is based on: Documents reviewed: Section 1: Preparation Provide an overview of the current situation facing the business including: The organisational mission, purpose and values Analysis of the company’s organisational objectives and identification of strategic

Graduate diploma in management

TAELED803 IMPLEMENT IMPROVED LEARNING PRACTICE PROJECT PORTFOLIO Student name: Assessor: Date: Organisation you are basing this project on: Relevant qualification, skill set or unit: Section 1: Evaluation and planning Describe the organisation and the course you are basing this project on. Describe the cohort of learners you are basing this