Reference no: EM132078696
Question: Scenario: Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads. The bobble heads are made out of less rigid materials and are more true to life than those of competitors. The company inventors, Mr. and Mrs. Lee, are going to pitch their idea to Shark Tank in a few months, but first they need to have a better understanding of the business financials. The Lee's are already creating and selling their product from their home-based office and work area. They know what costs are involved with making the bobble heads on a small scale, but they don't have an understanding of financial figures beyond basic costs. They need you to make sense of various financial figures for them.
Cost Classification: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed costs. Explain the importance of distinguishing between variable and fixed costs. If business is expected to be steady from month to month, provide a monthly budget based on these figures.
Advertising Fees = $4,000
Labor = $400/month
One part-time employee will be hired to take care of packaging and shipping. This employee will be paid $10 per hour. He or she is estimated to work 40 hours total per month.
Packaging Supplies = $3,000
Office Supplies = $800
Phone and Internet Service = $115/month
Product Supplies = $9,000
Shipping Fees = $1,000/month
Conference Exhibitor Fee = $3,000
Travel Expenses for Conference (e.g. airfare, meals, taxi) = $1,200
Utilities for the Home Workshop = $105/month
Break-Even Analysis: You have been asked to calculate how many units need to be sold to break even, based on the costs provided in task #3. Assume that only one conference will be attended and the estimated expenses associated with this conference are on target. Also assume that the value for total units per year is based on sales of 70 units per month. Therefore total units sold per year are 840. The selling price per unit is $79.
Contribution Margin: Based on the Break-Even Analysis just performed, what is the contribution margin per unit?
Generate the point forecasts and prediction intervals
: Generate the point forecasts and prediction intervals, using ARIMA (1, 1, 0) +C and ARIMA (0, 2, 2), respectively.
|
Calculate the company weighted average cost of capital
: Wilson Corporation (not real) has a targeted capital structure of 40% long term debt and 60% common stock. The debt is yielding 6% and the corporate tax rate.
|
Describe the problem your innovation targets
: How does the innovation contribute to the organization’s competitive advantage? Describe the problem your innovation targets.
|
Examine the purpose statement
: In this section, we will examine the purpose statement, which is one of the sections in the first chapter of the dissertation or capstone.
|
Distinguishing between variable and fixed costs
: The Lee's have provided you with the following costs and relevant information that are assumed for year 20XY. Classify the costs as variable costs or fixed.
|
What is the role of civil society in promoting democracy
: What is the role of civil society in promoting democracy?
|
Calculate the annual tax savings from the flotation cost
: Schooner Company is contemplating offering a new $50 million bond issue to replace an outstanding $50 million bond issue. The firm wishes to take advantage.
|
Ideas are introduced in services-products or processes
: When new ideas are introduced in services, products or processes, they rarely have an impact that increases uniformly over time.
|
Review problem of schweser satellites inc
: Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 million.
|