Reference no: EM131303981
Budget Planning and Control
Before approaching this assignment, be sure that you have watched the following video.
• Budgetary Planning featuring Babycakes *FULL VIDEO*. (2016). YouTube.
Babycakes, a specialty bakery, is the company that will be considered for all parts of your budget planning and control report. For this assignment, you will develop a three to four page paper in which you address the following.
1. Briefly discuss the ways a realistic budget will benefit the owner of Babycakes versus having no budget at all. Be sure to use Babycakes as the company and any specific product details in your explanation.
2. Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December, and a total for the quarter. Use one-half of the Valentine's Day sales as the basis for a usual day in the new quarter. Use 30 days for each month. Calculate the total sales for each month for October, November, and December.
3. Create three new products, one for each of the three holiday seasons in the 4th quarter. Estimate the sales units, sales price, and total sales for each month. Describe the assumptions used to make these estimates. Include an overview of the budget in the report, presenting the actual budget as an appendix with all data and calculations. Add these amounts to your sales budget.
4. The owner of Babycakes is interested in preparing a flexible budget rather than the static budget she currently uses. She does not understand why, when sales increase, her static budget often shows an unfavorable variance. Explain how a flexible budget will overcome this problem. Use the details of your newly prepared budget for the 4th quarter of 2016 to address her concern.
5. Imagine that Babycakes is facing a financial challenge that is causing the actual amount of money that it spends to become significantly more than its budgeted amount. Include a discussion of your own unique cause of the overspending. Explain the corrective actions needed to address these challenges.
6. Integrate relevant information from at least three quality academic resources in this assignment. Note: Please do not use your textbook as an academic resource. Also, Wikipedia and other Websites that are unreliable do not qualify as academic resources.
Your assignment must follow these formatting requirements.
Calculate the project’s terminal cash flow in year
: Consider the following project being evaluated by your company: ¥ Initial price of the asset is $200,000 will require $15,000 transportation and $5,000 installation. ¥ Will be depreciated S/L over 4 years to a $5,000 salvage. Calculate the project ca..
|
Calculate the markup as a percentage of cost
: A retailer purchases a can of soup for 24 cents and sells it for 36 cents. Calculate the markup as a percentage of cost and as a percentage of selling price.
|
Which are incremental cash flows
: To help distinguish opportunity costs and incremental cash flows, consider these four examples: Which of these are opportunity costs? Which are incremental cash flows?
|
What is differential pricing
: For what types of products would price skimming be most appropriate? For what types of products would penetration pricing be more effective?
|
Develop a sales budget for the la babycakes store
: Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the number of units, sales price, and total sales for each month; include October, November, and December.
|
Advantages and disadvantages of using everyday low prices
: Describe bundle pricing, and give three examples using different industries.- What are the advantages and disadvantages of using everyday low prices?
|
Selling strategy that yields risk-less profit at expiration
: Suppose that P is the price of a European put option to sell a security whose present price is S. Let K be the strike price of the option. Show that if P > K then there is a buying and/or selling strategy that yields risk-less profit at expiration (i..
|
The decision of how much money to pay out in dividends
: The decision of how much money to pay out in dividends is made by
|
What is the net present value of venture
: Teresa’s Tanning Salon expects annual sales of $175,000, annual fixed cash outlays are $57,000 a year at each location, variable cash outlays are 22 percent of sales, depreciation is $15,000 per year, and taxes are 32% (of pretax income). Initial out..
|