Cookies on Call Presentation

Anonymous
timer Asked: Feb 27th, 2019
account_balance_wallet $20

Question Description

Previous assignment attached

For your course project, you will be operating a cookie company, making costing decisions, and performing analysis. In Module 06, you will make a presentation of your analysis.

This Week, you will prepare a mission statement; set strategic, tactical, and operating objectives; decide on a company name; set cookie specifications, and decide on a cookie recipe. Additionally, you will calculate a standard cost per cookie and decide on an accounting system.

Deliverables:

Develop a Microsoft PowerPoint presentation which concisely presents the following information regarding your cookie company:

  1. Consider the company's mission. Will you focus on quality, volume, or satisfying a niche? Will you sell using a traditional brick & mortar storefront or through eCommerce? Who is your target market? What are your expansion plans? What will be your main products? Where will you operate?
  2. Write a mission statement for your company that reflects the decisions you made in the previous step.
  3. Based on your company's mission, describe the long-range goals, strategies, and objectives that your company will pursue. Will you increase sales a certain percent each year, increase the number of stores, co-brand with another product, etc.
  4. Decide upon a company name.
  5. Determine cookie specifications: size, color, key ingredients, appearance, quantity and packaging.
  6. Develop a recipe that fits with your mission, goals, and specifications.
  7. Create a job cost card for your cookie recipe and calculate cost per cookie. Assume overhead is allocated at a rate of $2 for every $1 of labor cost.
  8. List some of the costs you will include in overhead.
  9. Will you use a job order or process accounting system? Why?
  10. Include a diagram showing the flow of costs through your chosen system.

Production Ingredient cost (variable) Labor cost (variable) Depreciation (fixed) Other (fixed) Total 25,000 Jars of soup $ 20.000 Cost Per jar of soup (c.) (cost / 25,000 jars) $ 0,80 $ 12.000 $ 0,48 6.000 $ 1.000 $ $ Budget for the coming month (a.) (30,000 jars) 0,24 0,04 1,56 $ 39.000 $ 24.000 14400 6000 1000 45.400 REQUIRED Using the above information: a. Prepare a budget for the coming month. Assume that production will increase to 30,000 jars of soup. Vari b. Does the budget suggest that additional workers are needed? How do you know? Suppose the wage rate i What would happen if management did not anticipate the need for additional labor in the coming month? Question (a) has been calculated above in the table Question (b) Labor cost now Budgeted labor Cost $12.000,00 $14.400,00 $20,00 $20,00 600 720 120 If management did not anticipate the need for additional in the upcoming month, they wou c. Calculate the actual cost per unit in in the previous month and the budgeted cost per unit for the coming m The cost went down from 1.56 to 1.51 because of the fixed costs as calcula The company is currently producing and selling 325,000 jars of soup annually. The jars sell for $5.00 each. The a. What is the incremental cost associated with producing an extra 50,000 jars of soup? b. What is the incremental revenue associated with the price reduction of $0.40 per jar? c. Should Suzy's lower the price of its soup? Revenues 325.000 $ 1.625.000 $ Incremental Costs and revenues 375.000 1.725.000 $ 100.000 Ingredient cost (variable) Labor cost (variable) Depreciation (fixed) Other (fixed) Total costs Profit $ 260000 300000 $ 40.000 156000 180000 $ 24.000 6000 1000 423000 1.202.000 $ 6000 1000 487000 1.238.000 $ $ $ $ 64.000 36.000 From the given calculations, the incremental costs is $64,000, while the incremental revenue is $100,000 The profit has increased by 36, 000, increase in profit means it is a good decision to reduce the price Cost per unit for the coming month (c.) $ 0,80 $ 0,48 $ $ $ 0,20 0,03 1,51 to 30,000 jars of soup. Variable costs = (cost per jar X 30,000) Fixed costs do not change with a volume change. w? Suppose the wage rate is $20 per hour. How many additional labor hours are needed for the coming month (show you abor in the coming month? hours now hours we need if we increase production hours extra we need. Hence additional workers required because of the increase in hours the upcoming month, they would not meet the budgeted projection of 30,000 ost per unit for the coming month. Explain why the cost per unit is expected to decrease (hint: look at the fixed costs). ause of the fixed costs as calculated in the table above. jars sell for $5.00 each. The company is considering lowering the price to $4.60. Suppose this action will increase sales to his action will increase sales to 375,000 jars.

Tutor Answer

psumanrec
School: Carnegie Mellon University

Please find answer.Thank you.

Cookies on Call

NAME
UNIVERSITY NAME
COURSE
FEB 27,2019

Introduction


Focus on selling healthy low-fat cookies



Products selling through a traditional brick and mortar storefront .



Targeting individuals of both genders between 7-54 years of age.



Our main products will be; Chocolate Chip Cookie Mallow and Strawberry
chocolate chip.

Mission Statement
Our mission is to bake the best Cookies ever made. By using premium
ingredients in every freshly baked treat, and offering excellent customer
service, we guarantee products that are not only delicious but also a delight
to enjoy.

Long-term Strategy
Although first we will be operating stores near t...

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Review

Anonymous
Tutor went the extra mile to help me with this essay. Citations were a bit shaky but I appreciated how well he handled APA styles and how ok he was to change them even though I didnt specify. Got a B+ which is believable and acceptable.

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