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Over the years you have experimented with new pretzel recipes,




ACC 302 Final Project;ACC 302 Final Project;Project Orientation and Overview;Every year at the state fair your parents have run a pretzel booth. Over the years you have experimented with new pretzel;recipes, and many have been successfully incorporated into the selection of pretzels now offered each year at the state;fair.;Your parents are ready to retire and turn the business over in your name. You want to capitalize on your parents? success;and expand by offering pretzels at a store location. In order to expand, you will need to secure a bank loan to cover;expansion costs and overhead. To consider your proposal, the banker will want to see a business plan, specifically a;master budget.;Your task for this final project is to prepare and present all the necessary documents so that you can ask for that loan.;This task is broken down into four parts;? Part 1: Mission Statement and Partial Business Plan, due at the end of Week Five;? Part 2: Budgets, Financial Statements, and Analysis, due at the end of Week Six;? Part 3: Complete Business Plan and Cover Letter, due at the end of Week Seven;? Part 3: Business Plan Presentation, due on Day 1 of Week Eight;Part 1 ? Mission Statement and Partial Business Plan, due Week Five;? Review the following chapters;o Chapter 18: The Changing Business Environment: A Manager?s Perspective;o Chapter 19: Cost Concepts and Cost Allocation;o Chapter 23: Cost Behavior Analysis;? Complete the Mission Statement Template Handout to record information about your pretzel company, its mission;and its featured product.;? Use the tables and information in Exhibit 1 on the next page to calculate the costs of running your business and to;complete the short answer section of the Mission Statement Template Handout.;o Calculate total variable costs per dozen pretzels.;o Calculate sales price per dozen pretzels using 120% markup on variable costs.;o Calculate contribution margin per dozen pretzels.;o Calculate breakeven point for the quarter (three months) in dollars and units.;? Submit the completed Mission Statement Template Handout to ?My Assignments? in My West.;Exhibit 1;Cost of Goods;If your pretzel recipe has ingredients that are not included here, simply consider them part of your overhead expenses.;Direct Materials Unit Unit Cost;Flour (any kind) per cup $ 0.15;Sugar (any kind) per cup $ 0.15;Dry Yeast per cup $ 0.50;1 Stick of Butter, Shortening, Oil per 1/2 cup $ 1.00;Egg per cup $ 0.10;Salt per 1/2 cup $ 0.75;Specialty Ingredients (any kind, e.g., chocolate chips, cinnamon;cheese, pepperoni, etc.);per cup $ 2.00;Direct Labor;Information regarding direct labor cost is not maintained because your facility is highly automated. Direct labor is included;as part of manufacturing overhead.;Manufacturing Overhead and Operating Expenses;Manufacturing Overhead Variable;(per dozen);Fixed;(per month);Utilities $ 0.50;Other Indirect Materials and Labor $ 0.75;Maintenance $ 500.00;Depreciation $ 2,000.00;Supervision $ 2,500.00;Totals $ 1.25 $ 5,000.00;Operating Expenses Variable;(per dozen);Fixed;(per month);Sales Commission $ 0.50;Shipping Costs $ 1.00;Salaries $ 5,000.00;Depreciation $ 200.00;Other $ 1,800.00;Totals $ 1.50 $ 7,000.00 ACC 302 Final Project 3 01/30/12;Part 2 ? Budgets, Financial Statements, and Analysis, due Week Six;? Review Chapter 24: The Budgeting Process.;? Use the tables and information presented in Exhibit 2 on the next page to determine production and financial budget;data.;? Create a spreadsheet that provides the following budgets;o Sales budget/cash collections budget;o Direct materials purchases budget/cash disbursements budget;o Manufacturing overhead budget;o Operating expenses budget;? Create documents that show your projected income and your cash needs. More specifically, use the budgets and;other documentation that you have created for this project to create the following documents;o Proforma (projected) variable income statement;o Proforma absorption income statement;o Proforma balance sheet;o Cash budget;? Respond to the following short answer questions using a word processing program;Discuss the importance of beginning the master budget process with an accurate sales budget.;o What are some important factors that a manager should consider when developing a sales budget? State why;each is important.;o Distinguish between operating expenses and disbursements for operating expenses.;o What is the main difference between the variable and absorption income statements?;o What are the major benefits of budgeting?;? Submit the budgets, financial documents, and short answer questions to ?My Assignments? in My West. ACC 302 Final Project 4 01/30/12;Exhibit 2;Production Budget Information;It is a few months before your store is opening. You expect to open the doors of your pretzel company as of January 1.;You are starting fresh with no raw materials, no accounts receivable, and no accounts payable. You were able to secure;several contracts with local businesses (i.e., sales associates that are paid on commission), based off these contracts;you were able to make projects for the first four months of the year.;? Because your pretzels are made fresh daily, there is no work-in-process or finished goods inventory.;? You plan to maintain a raw direct material inventory of 10% of the next month production.;? Payment for raw direct materials is 25% in the month of purchase and 75% in the following months.;Your monthly sales projections are based off your last name, and sales are sold per dozen.;Collections on Sales;Cash sales collected in the current month: 40%;Credit sales are collected in the following month: 60%;Financial Budget Information;? Your initial investment in your business is $50,000, and you are looking to secure a bank loan for $50,000 with;additional line of credit. However, you must always have a minimum cash end-of-month balance of $10,000.;? If there is any cash over $10,000 available at the end of the month, you must repay your outstanding balance in;$1,000 increments.;? If the end-of-month cash balance falls below $10,000, you must make additional borrowing from the line of credit.;These borrowings are also in increments of $1,000.;? Your bank loan and line of credit has an annual interest rate of 12% which is paid monthly on the total outstanding;borrowings at the end of the prior month.;Additional Information;? Fixed asset acquisition in January is $90,000.;? Your income taxes are paid each quarter on net income at a rate of 25%.;A-F G-L M-S T-Z;January 3750 2750 2000 1750;February 3750 3250 3500 3750;March 3750 4000 4500 3500;April 3750 5000 5000 6000ACC 302 Final Project 5 01/30/12;Part 3 ? Complete Business Plan and Cover Letter, due Week Seven;? Write a cover letter to a banker explaining why the banker should approve your loan.;? Compile and complete your business plan, including all supporting documentation created for this project.;? Submit your complete business plan as one document to ?My Assignments? via My West.;Part 4 ? Business Plan Presentation, due in-class, Week Eight;? Create a 5?15 slide Microsoft? PowerPoint? presentation of your business plan. The slides will be evaluated for;o Content;o Relevance;o Layout;o Readability;? Present your business plan in person (on campus) or via Adobe?;Acrobat?;ConnectTM during the online class;meeting. Your presentation must be 10?15 minutes long (including Q & A) and will be evaluated on;o Delivery of the content;o Answers to follow-up questions from the class and instructor;For online students: If you are to be absent from class, your slides must include detailed speaker notes containing the;content that would have been delivered in the live session.;Note to instructor: Time devoted to final presentations may need to be adjusted to account for large class sizes. These;adjustments are at the discretion of the instructor.;*Note this assignment only focuses on a mission statement and the financial portion of a business plan.


Paper#28271 | Written in 18-Jul-2015

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