Explaining the costing and financial data

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Reference no: EM132470038

Point 1: You have developed a new hair product (shampoo, conditioner, balm, hair mask), which you believe could revolutionise the market. It is a healthy alternative to the existing range of hair products.

Point 2: Following on from the Dragon's Den success of Levi Root's Reggae Reggae Sauce - (search the internet if you are unfamiliar with this story), you have decided to make a pitch to a small group of potential investors.

Point 3: You know that any potential investor will expect you to have a good knowledge of how much your product will cost to produce and also of the expected level of sales and profit your product is predicted to make.

Point 4: To keep things simple, you decide to produce your new hair product in one size only. (Students must choose the size of the product and also the type of packaging).

REQUIRED:

Question 1: List the assumptions you have used to produce your key financial data and introduce the product.

Question 2: a marginal costing cost statement for your product on a 'per unit' and 12 months sales/production basis.

Question 3: (see details below)

Produce the following financial documents for the first 12 months of trading:

  • Cash Budget (month by month)
  • Forecast Income Statement for the year 
  • Forecast Statement of Financial Position (Balance Sheet) for the year

Question 4: A business case explaining the costing and financial data from tasks 1-3 above, to your potential investors.

Reference no: EM132470038

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