Reference no: EM13340393

Scenario:

You have developed a footwear product, which you believe could revolutionise the footwear market.

Following on the dragon's Den success of Levi Root's Reggae Reggae Sauce-(search the internet if you unfamiliar with this story), you have decided to make a pitch to a small group of potential investors.

You know that any potential investors will expect you to have a good knowledge of how much your product will cost to produce and also of the expected level of sales and profit your product is predicted to make..

REQUIRED:

1. Provide a list of the assumption upon which you are basing your revenue and cost figures.
2. Prepare a marginal costing cost statement for your product on a per unit and 12months sales/production basis.
3. Produce a break -even analysis (table and graph) for your product based on 12month activity.
4. Produce the following financial documents for the first 12months of trading:

a. Cash budget

B.forecast income statement

C.forecast balance sheet

5.write a 1,000 word pitch explaining the costing and financial data from task.

TASK

1. Provide a list of assumption upon which you are basing your revenue and cost figures.

2. Prepare a marginal cost statement for your product.

3. Produce a break-even analysis for your product.

4. Produce the following financial documents:
a. Cash budget
b. forecast income statement
c. forecast balance sheet

5.write a 1,000 word (pitch)explaining the costing and financial data from task 1-3above,to your potential investors.