Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Managerial Accounting Expert

Check LiveText for due date and details on how to submit the assignment.  You must upload the assignment in LiveText in a single Excel file that contains three separate worksheets. You should name your file in the following manner:  “yourname_BA216_proj”. Your work product should demonstrate your proficiency at creating documents in Excel, including but not limited to formatting and formula use.
   
Below is the information needed to complete the special project relating to select accounting topics. No assistance should be sought from anyone except your instructor.

Financial information for the project:

1) You decide to open a small business in Charleston, WV that will cater primarily to busy office workers downtown.  You are going to offer a gourmet box lunch to be delivered to any office with a minimum number of 5 orders. This lunch will include a gourmet sandwich, a bag of chips, a cookie, and a bottle of water. Because you are using only the finest ingredients, you will charge $7.25 per lunch.

2) The cost of the food items (cost of goods sold) in each lunch is budgeted at $3.10. These are primarily perishable items, so inventory is negligible.  You pay for virtually all of your purchases by check at the time they occur.

3) You are planning on drawing out a monthly salary of $1200.

4) You are planning on hiring an assistant to help you with packing the box lunches and delivering them 20 hours per week at $7.60 per hour.  Assume four weeks in the month. Assume you will pay your assistant regardless of the hours they are actually needed. Treat this as a fixed cost.

5) You believe you must heavily advertise to get your business established. The amount you are willing to spend is 5% of your monthly revenue.  Even though you are using sales revenue to determine the dollar amount of your advertising, treat this as a fixed cost. Advertising costs are paid in the month incurred.

6) You have to pay rent on a commercial kitchen where you will store your items and prepare your box lunches. The rent is $400 per month. Rent is payable on the 1st day of the month.

7) You will rely on a fax machine to receive your orders. The cost of the phone line is $95 per month. Payment for the current month will occur in the next month when the bill is received.

8) You received an electric bill on the last day of the month payable on the 20th of the following month. It was for $235. Your electric usage is very stable; therefore you treat it as a fixed cost.

9) Sales are primarily cash. There are a few corporate clients you have extended credit to. You estimate 12% of total sales will be collected in the next month. Because this is the first month of operations, there are no outstanding accounts receivables. 

10) In order to deliver the lunches you have leased a delivery truck. The lease is a two-year lease at $375 per month. The variable cost of operating the delivery truck is $0.46 per lunch delivered. The lease payment is paid at the beginning of the month and all variable costs are paid as incurred.

11) Based on your business plan you drew up, you decided to invest $6000 of your own money to get your business started.  Prior to beginning business operations, you spent some of this $6000 as start-up costs (in prior months) leaving you with a cash balance at the beginning of the first month of operations of $2900.

Managerial Accounting, Accounting

  • Category:- Managerial Accounting
  • Reference No.:- M9154

Have any Question? 


Related Questions in Managerial Accounting

Instructionsall assignments must be typed in a minimum 11

Instructions: All assignments must be typed in a minimum 11 font size into the assignment template question sheet (available on Moodle). Additional pages may be added as needed. There is no word limit, but be guided by t ...

Manual accountingthe benjamin company completed these

Manual Accounting The Benjamin Company completed these transactions during January of the current year: January 1, Began business by selling stock for $750,000.00. January 1, Rented office space for 1 month using check n ...

Accounting for managers- assignmentfinancial statement

Accounting for Managers- Assignment Financial Statement Analysis The following information relates to Harris Corporation. Account Current year Prior year Net sales (all credit) $520,125 $499,500 Cost of goods sold $375,9 ...

Which career is for you please respond to the

"Which Career is for You?" Please respond to the following: • Compare and contrast the key responsibilities of certified management accountants and certified public accountants. Select the career path that you plan to pu ...

Your company has spent 390000 on research to develop a new

Your company has spent $390,000 on research to develop a new computer game. The firm is planning to spend $59,000 on a machine to produce the new game. Shipping and installation costs of the machine will be capitalized a ...

Free cash flow you are considering an investment in cruise

Free Cash Flow: You are considering an investment in Cruise, Inc. and want to evaluate the firm's free cash flow. From the income statement, you see that Cruise earned an EBIT of $206 million, paid taxes of $47 million, ...

Task question 1 1000 wordsmather and peison 2006 report

Task Question 1 (1000 words) Mather and Peison (2006) report that public debt contracts tend to have a lower average number of accounting based debt covenants as well as less binding debt covenants relative to private de ...

Assignment managerial accounting projectabstractyou are the

ASSIGNMENT: Managerial Accounting Project Abstract: You are the owner of your own company. Fast growth and the need to expand have made it necessary for you to seek financing from a local bank. However, you need to show ...

Problem 1 master budgetomega inc has developed the

Problem 1: Master Budget Omega, Inc. has developed the following sales forecast for the first six months of the coming year Month Sales (in units) January 30,000 February 50,000 March 70,000 April 80,000 May 60,000 June ...

The facts and figures relating to irrigation corporation

The facts and figures relating to Irrigation Corporation are as follows. Irrigation Corporation produces plastic garden sprinklers. The company is preparing its budget for 2016. The first step is to plan for the first qu ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro