Determine the timing of a capital expenditure

Reference no: EM132477314

Background

You own a frozen pizza manufacturing and distribution business. Our premium product, Buzz All Natural Pizza appeals to the adult learners at DeVry University. A marketing survey revealed a time-starved segment that is always in need of energy at the end of the day or week in order to do their schoolwork. Also being poor time managers, this homogenous group requires a more direct form of intervention in order to reach peak academic performance. In order to meet this need, your pizza has tomato sauce.

Deliverable 1

The Operating Budget

Input the sales volume, as projected by your Field Sales managers.
Input your forecast product mix, as provided by the Marketing department.
Input the efficiency rate for your direct labor, as projected by the VP of Manufacturing.
Input the sales commission, as provided by the VP of Sales and the department's fixed costs.
Input the administrative fixed costs as provided by the CFO.
Calculate and comment on the break-even point.
Calculate the sales volume needed to reach a target profit and comments.

The Cash Budget

If needed, copy the sales from the first quarter operating budget.
Using an aging of the collection period, as provided by the credit manager, forecast cash receipts by month.

Question 1: Calculate the cash disbursements by month.

Question 2: Determine the timing of a capital expenditure.

Question 3: Determine the timing and amount of financing.

Reference no: EM132477314

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