This week you will submit your final project. You are looking for additional funding for your cookie company and will prepare a presentation for investors. In a clear, professional and concise manner prepare a PowerPoint slide presentation to introduce your company to a group of investors.
Your presentation should cover at a minimum the following:
Your company name, vision, mission, goals, and strategies
A balanced scorecard:
Review the mission statement and strategies you developed and submitted for the Module 02 Course Project Assignment.
Fit the strategy points into the 4 perspectives of the balanced scorecard (you may need to create more strategies or fine tune your Module 02 strategies **see attached document deliverable 2**).
Develop performance measures for each strategy point.
State which department(s) would be responsible for each performance measure.
Comment on how the departments must work together as a team to execute the balanced scorecard and how diversity among team members would enhance the outcomes.
Cost information including contribution margin and break-even
When preparing your presentation, be mindful of the information in which an investor might be interested. Please include talking points on slide notes where appropriate.
Include in-text citations and a reference page where necessary.I have attached the completed assignments to use as reference when needed.
scrocker_module_1_graded_corrections.xlsx
scrocker_module02_02252019.xlsx.pptx
scrocker_module03_03032019.xlsx
scrocker_module04_03102019.xlsx
Unformatted Attachment Preview
Production
Ingredient cost
(variable)
25,000 Jars
of soup
$
Labor cost (variable)
Depreciation (fixed)
Other (fixed)
Total
$
Cost Per jar of soup
(c.)
(cost /
25,000 jars)
Budget for the coming
month (a.) (30,000
jars)
20,000
$
0.80
$
24,000
12,000
6,000
1,000
39,000
$
$
$
$
0.48
0.24
0.04
1.56
$
$
$
$
14,400
6,000
1,000
46,800
REQUIRED
Using the above information:
a. Prepare a budget for the coming month. Assume that production will increase to 30,000 jars of soup.
Variable costs = (cost per jar X 30,000) Fixed costs do not change with a volume change.
Question 1.
a. Budget
Production
Ingredient cost
(variable)
25,000 Jars of Cost Per jar of soup (c.) Budget for the coming
soup
(cost / 25,000 jars)
month (a.) (30,000 jars)
$
Labor cost (variable)
Depreciation (fixed)
Other (fixed)
Total
$
20,000 $
0.80 $
24,000
12,000
6,000
1,000
39,000
0.48
0.24
0.04
1.56
14,400
7,200
1,200
46,800
$
$
$
$
$
$
$
$
b. Does the budget suggest that additional workers are needed? How do you know? Suppose the wage rate i
How many additional labor hours are needed for the coming month (show your work)?
What would happen if management did not anticipate the need for additional labor in the coming month?
1. b
Budgeted
Current labour cost $
12,000 $
14,400
Cost per labour hour $
20 $
20
Number of hours
600
720
Extra hours needed
120
The current labour cost is $12000 with a cost per labour unit of $20. The requred number of hours in the
600. The budget requires a total cost of 14400 with a cost per labour unit of $20. The total labour hours n
budget schedule is 720. The extra number of hours required is 120 since there is additional productio
The current labour cost is $12000 with a cost per labour unit of $20. The requred number of hours in the
600. The budget requires a total cost of 14400 with a cost per labour unit of $20. The total labour hours n
budget schedule is 720. The extra number of hours required is 120 since there is additional productio
c. Calculate the actual cost per unit in in the previous month and the budgeted cost per unit for the coming
Explain why the cost per unit is expected to decrease (hint: look at the fixed costs).
The increase in productionis not likely to affect the fixed. The total variable costs increase with increase
However, when calcualting the total relevant costs, the fixed cost per unit is factored. The situation result
in total cost but with a reduction in cost per unit due to unchanging fixed cost.
The company is currently producing and selling 325,000 jars of soup annually. The jars sell for $5.00 each. The comp
is considering lowering the price to $4.60. Suppose this action will increase sales to 375,000 jars.
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?
The price reduction has resulted to a cange in the net profit by $22500 which is good for the performance o
Suzy therefore can lower the price to to 4.6
Revenues
Ingredient cost
(variable)
325,000
$ 1,625,000
$
260000
Labor cost (variable)
156000
6,000
Depreciation (fixed)
1,000
Other (fixed)
423000
Total costs
$
1,202,000
$
Profit
Revenues
375,000
1,687,500
Incremental Costs and
revenues
$
62,500
300000 $
40,000
156000
6,000
1,000
463000
1,224,500
325,000
$1,625,000
$
$
$
$
$
40,000
22,500
375,000
$1,725,000
Ingredient cost (variable)
Labor cost (variable)
Depreciation (fixed)
Other (fixed)
Total costs
Profit
260000
156000
6000
1000
423000
$1,202,000
300000
180000
6000
1000
487000
$1,238,000
Cost per unit for the coming
month (c.)
$
0.80
$
$
$
$
0.48
0.20
0.03
1.51
to 30,000 jars of soup.
volume change.
Cost per unit for the coming
month (c.)
$
0.80
$
$
$
$
0.48
0.24
0.04
1.56
w? Suppose the wage rate is $20 per hour.
abor in the coming month?
qured number of hours in the production is
$20. The total labour hours needed for the
e there is additional production needed.
qured number of hours in the production is
$20. The total labour hours needed for the
e there is additional production needed.
ost per unit for the coming month.
costs increase with increase in production.
factored. The situation results to an increase
unchanging fixed cost.
sell for $5.00 each. The company
$
$
40,000
62,500
is good for the performance of the company.
o 4.6
-7
GREEN ARE THE CORRECT ANSWERS FOR THE ONES ABOVE THAT AR
Incremental Costs and revenues
$100,000
$
$
$40,000
$24,000
$64,000
$36,000
Forming a Company
Samantha Crocker
Rasmussen College
Introduction
▪ The discussion will focus on establishing a cookie
company. The company has to operate in a
particular locality. The new business needs to
come up with a recipe and cookie specifications.
It also needs to decide on a costing system. The
business has to defend the choice of location and
prove that the business concept will offer tangible
returns in the long run. The business has to
identify the overhead costs and come up with a
flow chart to indicate the movement of costs in
the business.
COMPANY NAME
Halls Cookies
• Halls Cookies will major in the sale of organic and
healthy cookies through office and home deliveries.
• The company intends to take advantage of the
increased demand for organic food stuffs through the
use of organic ingredients (Mazzacano & Falzon,
2015)
• The company will be located in the busy New York
City.
Company’s Mission
Focus
▪ Halls Cookies will focus on satisfying the market
niche.
▪ Halls Cookies will look to provide organic and
healthy cookies to the residents of New York.
Sale Platform and Target Market
▪ The target market for Halls Cookies will be New York
residents.
▪ The company will especially target the working class
residents of the city through home and office
deliveries of healthy cookies.
Expansion plans
▪ Halls Cookies intends to expand through the
establishment of a traditional brick & motor
storefront after an year of its inception.
▪ The storefront will address the needs of
customers who may prefer to have sit-down
cookies as snacks
▪ The company will also seek to engage partner
with various institutions and corporations in
enabling constant supply of cookies
(Mazzacano & Falzon 2015).
Halls Company Mission Statement
▪ At Halls Cookies, our goal is simple; to bake
healthy and tasty cookies at the door step of your
workplace, school or home at an affordable fee.
Long range goals
.To be New York’s number 1 cookie supplier
▪ Halls Cookies intends to secure contracts from
institutions and companies in the future to allow
them to supply cookies on a regular basis.
Area of Operation
▪ The company will operate mainly in New York
city.
▪ The choice of location is informed by the fact that
the city is densely populated.
▪ Most of the locals are busy at their places of work
and might not be in a position to grab a snack
while at work.
▪ As of 2017, the city had about 8.623 million
individuals.
▪ Most of the individuals in the city have an income
and will greatly benefit the business in terms of
purchasing power.
Strategies
▪ The first strategy is to provide discounted prices for
homes, institutions and companies which make
monthly delivery subscriptions.
▪ The second is to carry out a strong campaign
initiative through advertisement in local dailies and
for a period of up to 6 months (Mazzacano &
Falzon 2015).
Objectives
▪ Makes over $100,000 worth of sales in the first
year.
▪ Increase the sales by 50% in the second year.
▪ Open two more stores in the third year.
Cookies Specifications
▪ The cookies baked by Halls Cookies will be in
different shapes, appearances and colours
depending on the customers needs.
▪ The predominant features will be round and
brown cookies packed in packages containing 15
cookies.
▪ Key ingredients will be fetched from local natural
ingredients such as coconut oil, organic cane
sugar, raw honey and eggs.
▪ Other ingredients include; flour, baking soda,
unrefined salt, butter and chocolate chips.
Recipe
▪ Pre hit oven to 400 F
▪ Use a mixer blender to mix organic cane sugar, raw
▪
▪
▪
▪
honey, vanilla, eggs, butter extracts.
Blend the mix for two minutes. Combine unrefined
salt, baking soda and almond flour in a different
bowl.
Combine the wet and dry ingredients until they are
well combined. Stir them in chocolate chips.
Place the mix in parchment lined cookie sheets.
Bake for 6-10 minutes.
Job Cost Card
Job order 1
Job cost card
Monies
Customer; N/A
Batch x
custom
Specifications
1 batch of Cinnamon
Roll Sugar Cookies
Date of order
8/15/2018
Date of completion
8/15/2018
Costs charged to job
Previous months
Current month
Cost summary
Direct material
$0
$ 5.52
$ 5.52
Direct Labour
$0
$ 13.07
$ 13.08
Overhead
$0
$ 11.01
$ 11.01
Totals
29.61
Units completed
50
Product unit cost
$0.59
Overhead costs
▪ Business licence
▪ Advertising costs
▪ Insurance costs
▪ Accounting fees
▪ Cottage food licence
▪ Supply and depreciation costs
Accounting System
▪ The accounting system to be utilized in the
business is the job order costing system.
▪ Job order costing system will focus on
accumulating and assigning costs to each unit of
output (Krumwiede & Walden, 2013).
▪ The accounting system will make it possible to
assign the costs to each cookie (Krumwiede &
Walden, 2013).
▪ The costing system can be utilized in determining
the prices and deciding on whether the business is
meeting its margins.
Flow of Costs
Direct
Material
costs
Direct
Labor
Costs
Overhead
Costs
Product
unit cost
Market
Cost of
each
cookie
Conclusion
▪ The discussion focuses on the establishing a
company. The company adopted for the case is a
cookie company dubbed Halls Cookies. The
company will focus on New York City as it seeks
to serve the residents. The company will focus on
having a personal interaction with the consumers.
The company will also seek to make over
$100,000 in the first year and grow the sales by
50%. The company has come up with a recipe and
cookie specifications. It has also adopted the job
order costing system since it ensures they can
meet their margins.
References
▪ Krumwiede, K. R., & Walden, W. D. (2013).
Dream Chocolate Company: Choosing a
Costing System. Issues in Accounting
Education, 28(3), 637–652.
https://doi.org/10.2308/iace-50464
▪ Mazzacano D’Amato, P., & Falzon, J. (2015).
Why do some consumers prefer organic food?
A discourse analytical perspective. Journal of
Food Products Marketing, 21(3), 255-273.
Ingredients
Coconut oil
Organic cane
sugar
raw honey
eggs
Unrefined salt
Flour
Baking Soda
Salt
Chocolate chips
Classification of cost
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Variable
Overhead
Indirect labor (Salaried)
Insurance
Utilities
Employee benefits
Depreciation equipment
Rent
Property taxes
Classification of cost
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Fixed
Month
January
February
March
April
May
June
Kilowatt Hours Used Electric Costs
1866
$230
1439
$202
1146
$197
1046
$190
996
$182
1760
$225
Kilowatt Hours Used Electric Costs
1866
230
996
182
Highest
Lowest
Y = mx+c
Electricity cost per kilowatt
Total cost at high level $
less: Variable cost
$
Fixed cost
$
Cost per day
$
0.055172414
230.00
102.95
127.05
4.23
Assumption made
Assume selling price per cookie
Variable cost (other than electricity cost)
Fixed cost per day (other than electricity)
Contribution statement
Selling price
Less: Variaboe cost
Electricity
Other
Contribution Margin
$ 35.00
$ 29.65
$ 145.75
$ 35.00
$
$
0.06
29.65 $ 29.71
$ 5.29
Fixed cost
Contribution margin per cookie
Breakeven point in cookies per day
Breakevn in sales dollars per day
$ 149.98
$ 5.29
28
$ 991.43
Target proft Application
Target proft
Numeber of Cookies that must be sold
$
100
47
@full capacity
Existing
selling Qty/Nos
Selling Price
Cookie Material
Labour @50c/hour
Other Variable
Logo charge
Napkin cost
Fixed cost
Sales
Variable cost:
Cookie Material
Labour
Other Variable
Logo charge
Napkin cost
Total variable cost
Contribution
Fixed cost
Profit
Special Order
10,000
500
$5.00
$2.00
$2.00
$1.00
$1.50
$1.00
$1.00
$0.00
$0.03
$0.00
$0.01
$5,000.00
$200.00
$20,000.00
$10,000.00
$10,000.00
$0.00
$0.00
Min Rate
$2,470.00
$4.94
$2,494.70
$4.99 PRICE CHARGED
$1,000.00
$750.00
$500.00
$15.00
$5.00
$40,000.00
$10,000.00
$5,000.00
$5,000.00
$2,270.00
$224.70
$200.00
$24.70
Minimum Cost
$50,000.00
selling Qty/Nos
Selling Price
Cookie Material
Labour @50c/hour
Other Variable
Logo charge
Napkin cost
Fixed cost
@full capacity
New after giving up
9,500
$5.00
$2.00
$1.00
$1.00
$0.00
$0.00
$5,000.00
if 85% of price offered
500
$4.24
$2.00
$1.50
$1.00
$0.03
$0.01
$200.00
Sales
Variable cost:
Cookie Material
Labour
Other Variable
Logo charge
Napkin cost
$2,120.50
$47,500.00
$1,000.00
$750.00
$500.00
$15.00
$5.00
$19,000.00
$9,500.00
$9,500.00
$0.00
$0.00
Total variable cost
Contribution
Fixed cost
Profit
$2,270.00
($149.51)
$200.00
($349.51)
$38,000.00
$9,500.00
$5,000.00
$4,500.00
Total Profit
The company should accept the project at the reduced price because it reduces the overall profitability of the com
The total fixed cost of the project is $200. At a price of $4.99, the project will make a profit of $24.70. When the p
reduced by 85%, the project will make a negative contribution and loss of 349.51. Total profit generated from the
9500 units is $4500. Total profit generated when the company accepts the order at reduced price is $4,150.50. Th
has a negative contribution and reduces the company overall profit. Therefore, the company should not accept the
offer.
Special Order
500
$4.24
$2.00
$1.50
$1.00
$0.03
$0.01
$200.00
$2,120.50
$1,000.00
$750.00
$500.00
$15.00
$5.00
$2,270.00
($149.51)
$200.00
($349.51)
$4,150.50
overall profitability of the company.
e a profit of $24.70. When the price is
Total profit generated from the sale of
reduced price is $4,150.50. The project
company should not accept the special
…
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