1. Given Angies budget and profit goals, suggest which metrics Angie should use to assess the success of her new venture. Prices and costs are per tray, so use trays as the basic unit when determining per-unit amounts.

Profit goal $4000 per month

The Assignment 1. Given Angie's budget and profit goals, suggest which metrics Angie should use to assess the success of her new venture. Prices and costs are per tray, so use trays as the basic unit when determining per-unit amounts. 2. Analyze and compare Angie's overall actual results with her expected results to determine why her accountant is concerned. 3. Angie's accountant recommended that your team drill down further into the sales mix and cost figures to deter- mine how the different product types are affecting prof its. Look for any sales-mix issues and suggest potential solutions. 4. Offer suggestions for how Angie should determine a price quote (per tray) for the special-order customer. 5. Offer suggestions to improve Angie's operations and to help her decide whether to continue the business and, if so, how to grow it. Consider potential alternative prod- ucts, services, and marketing options. SF Table 1: SIX-MONTH BUDGET (APRIL-SEPTEMBER) APRIL 300 $3,450 MAY 350 $4,025 JUNE 450 $5,175 JULY 500 $5,750 AUGUST 650 $7,475 SEPTEMBER 1.100 $12,650 TOTAL 3,350 $38,525 Trays sold Sales revenue Cost of sales: Ingredients Labor $725 1,035 $1,570 2,243 195 1.000 $845 1,208 105 1.000 125 $2,657 3,795 3 30 1.000 Trays Rent 90 1,000 121 $1,087 1552 135 1.000 131 800 $4,705 $470 $1,207 1,725 150 1.000 135 850 $5,067 $683 $8,091 11,558 1,005 6,000 835 Utilities 146 177 Delivery Total cost of sales Operating profit 650 $3,621 $(171) 700 $3,983 $42 1.000 $6,154 $1,321 1,450 $9,409 $3,241 5,450 $32,939 $5,586 NOTE - MIXED COSTS VARIABLE COST PER TRAY FIXED COST PER MONTH Utilities $0.07 $100 Delivery $1.00 $350 Table 2: ACTUAL RESULTS (APRIL-SEPTEMBER) Trays sold APRIL 300 $3,450 MAY 340 $3,910 JUNE 4 70 $5,405 JULY 672 $7,728 AUGUST SEPTEMBER 8471,290 $9,741 $14,835 TOTAL 3,919 $45,069 Sales revenue Cost of sales: Ingredients Labor Trays Rent Utilities Delivery Total cost of sales Operating profit $725 $901 $1,214 $1,760 $2,212 1,139 1,290 1,784 2,550 3,214 90 102 141 202 254 1,000 1,000 1,000 1,000 1,000 121 124 133 147 159 665 707 844 1,056 1,239 $3,740 $4,124 $5,116 $6,715 $8,078 ($290) ($214) $289 $1,013 $1,663 $3,255 4,896 387 1,000 190 1,547 $11,275 $3,560 $10,067 14,873 1,176 6,000 874 ,058 $39,048 $6,021 6 NOTE - MIXED COSTS ACTUAL FIXED COST PER MONTH Utilities $100 Delivery $350 Table 3: ACTUAL INGREDIENT COST BY TYPE AND SALES MIX BY MONTH PERUVIAN (CHICKEN) ARGENTINI AN (BEEF) April QUANTITY 300 340 40% VEGETARIAN 20% 5% 10% May 45% 470 672 8% 42% 42% 43% 44% 40% 50% 48% 50% 49% 44% 47% $3.105 June July August September Total Cost per tray 847 8% 1,290 3,919 12% 10% $1.265 43% $2.300 The Assignment 1. Given Angie's budget and profit goals, suggest which metrics Angie should use to assess the success of her new venture. Prices and costs are per tray, so use trays as the basic unit when determining per-unit amounts. 2. Analyze and compare Angie's overall actual results with her expected results to determine why her accountant is concerned. 3. Angie's accountant recommended that your team drill down further into the sales mix and cost figures to deter- mine how the different product types are affecting prof its. Look for any sales-mix issues and suggest potential solutions. 4. Offer suggestions for how Angie should determine a price quote (per tray) for the special-order customer. 5. Offer suggestions to improve Angie's operations and to help her decide whether to continue the business and, if so, how to grow it. Consider potential alternative prod- ucts, services, and marketing options. SF Table 1: SIX-MONTH BUDGET (APRIL-SEPTEMBER) APRIL 300 $3,450 MAY 350 $4,025 JUNE 450 $5,175 JULY 500 $5,750 AUGUST 650 $7,475 SEPTEMBER 1.100 $12,650 TOTAL 3,350 $38,525 Trays sold Sales revenue Cost of sales: Ingredients Labor $725 1,035 $1,570 2,243 195 1.000 $845 1,208 105 1.000 125 $2,657 3,795 3 30 1.000 Trays Rent 90 1,000 121 $1,087 1552 135 1.000 131 800 $4,705 $470 $1,207 1,725 150 1.000 135 850 $5,067 $683 $8,091 11,558 1,005 6,000 835 Utilities 146 177 Delivery Total cost of sales Operating profit 650 $3,621 $(171) 700 $3,983 $42 1.000 $6,154 $1,321 1,450 $9,409 $3,241 5,450 $32,939 $5,586 NOTE - MIXED COSTS VARIABLE COST PER TRAY FIXED COST PER MONTH Utilities $0.07 $100 Delivery $1.00 $350 Table 2: ACTUAL RESULTS (APRIL-SEPTEMBER) Trays sold APRIL 300 $3,450 MAY 340 $3,910 JUNE 4 70 $5,405 JULY 672 $7,728 AUGUST SEPTEMBER 8471,290 $9,741 $14,835 TOTAL 3,919 $45,069 Sales revenue Cost of sales: Ingredients Labor Trays Rent Utilities Delivery Total cost of sales Operating profit $725 $901 $1,214 $1,760 $2,212 1,139 1,290 1,784 2,550 3,214 90 102 141 202 254 1,000 1,000 1,000 1,000 1,000 121 124 133 147 159 665 707 844 1,056 1,239 $3,740 $4,124 $5,116 $6,715 $8,078 ($290) ($214) $289 $1,013 $1,663 $3,255 4,896 387 1,000 190 1,547 $11,275 $3,560 $10,067 14,873 1,176 6,000 874 ,058 $39,048 $6,021 6 NOTE - MIXED COSTS ACTUAL FIXED COST PER MONTH Utilities $100 Delivery $350 Table 3: ACTUAL INGREDIENT COST BY TYPE AND SALES MIX BY MONTH PERUVIAN (CHICKEN) ARGENTINI AN (BEEF) April QUANTITY 300 340 40% VEGETARIAN 20% 5% 10% May 45% 470 672 8% 42% 42% 43% 44% 40% 50% 48% 50% 49% 44% 47% $3.105 June July August September Total Cost per tray 847 8% 1,290 3,919 12% 10% $1.265 43% $2.300