Prepare a break-even analysis. Determine the selling price per acai bowl,
variable cost, contribution margin. Think about the number of acai bowls that
need to be sold monthly to break even and the sales in dollars required to
break even. Consider the reasonableness of your answer.
2. Prepare a projected sales budget for the first 3 months of
operations. Make up your numbers.
3. Prepare projected Performance Report with a Static Flexible
and Actual for March, April and May.
Analyze the results for March and April. How is she doing? How can she improve?
I think the format on page 423 exhibit 9-8 is ideal to inspire you on how to
start and adapt to Joanna. It’s an idea for you to use. You do not have to
follow it to the letter. Analyze the differences. Are they favorable?
Unfavorable? How is Joanna doing? Will this business survive?
4. Prepare an Actual Income Statement March, April and May
based on your numbers, and compare the results to those that were projected.
Explain the results to Joanna “The client”. What is there to do to be
successful?
5. Prepare a projected Cash Budget for March, April and May.
Assume interest is 2% per month if Joanna needs to borrow. Keep it simple.
6.. Give at least three suggestions (general
suggestions or accounting specific suggestions) that in your opinion John needs
to implement to grow the business more and to improve the results of
operations.
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