$6)$ Now that Julie has a beter understanding of the behavior of her costs, she wants to use whatshe has learned to prepare for the following scenarios:$$ A local food caterer wishes to partner with Julie to buy the wedding cakes in bulk at adiscounted price to sell to their clients. This will help Julie boost her sales and is a good

opportunity for her. If the caterer offers to buy $50$ cakes per month at $$600$ each, andJulie has excess capacity, should Julie accept the special order?$$ Julie has an idea to offer a premium wedding cake that would include real flowers on topof the cake. The flowers would cost her about $$50/$cake$,$ and she would plan on sellingthe premium wedding cakes for $$900.$ Should she con$$nue selling the wedding cakes asis or sell this premium op$$on$?$ Julie is currently making her own vanilla extract that she uses for flavoring in her cakes. Itcurrently cost her $$40$ to make a botle of vanilla extract that will help her produce $60$cakes. If she were to purchase a botle of vanilla extract, it would cost her $$50.$ Shouldshe make or buy the extract? If she now has freed up space and $$me to be able to makean addi$$onal wedding cake, would this change her decision?Use Excel to analyze these business decisions to determine what Julie should do if she comesacross these scenarios$\mathrm{.}7)$ Julie wants to make sure that she is able to meet the demand for her wedding cakes. In order todo this, she needs to know how many cakes to produce, how many materials to buy, and howmuch money in the bank she needs to pay her bills as they come due. She prepares a masterbudget to calculate the budget sales, produc$$on$,$ direct materials purchases, direct labor costs,and cash flows. Use the informa$$on below to put together the master budget in Excel.Sales Budget:$$ Expected Sales $($$$800/$cake$)$:o January $50$ cakeso February $60$ cakeso March $80$ cakeso April $90$ cakeso May $100$ cakesProduc$$on Budget:$$ Desired ending cakes $=10\%$ of the following months demandDirect Materials Budget:$$ There are $6$ eggs in each wedding cake$$ Desired ending eggs $=20\%$ of the following months eggs need$$ A carton of a dozen eggs cost $$2\mathrm{.}40($$$0\mathrm{.}20/$egg$)$ She currently have $24$ eggs in beginning inventoryDirect Labor Budget:$$ Each cake requires $6$ hours of direct labor and bakers are paid $$20/$hr in the same monththat they workCash Receipts Budget:$$ Sales are $40\%$ cash and $60\%$ credit$20\%$ of credit sales are collected in the same month and $80\%$ in the following month

Cash Payments Budget:$$ Direct material purchases are paid $30\%$ in the same month of the purchase and $70\%$ inthe month following the purchaseCash Budget:$$ Julie currently has $$10,000$ set aside to open her business and wants to make sure shealways has at least $$10,000$ in her account as a safety netUse Excel to prepare all the budgets to determine if Julie has enough money saved up to get herbusiness started$\mathrm{.}8)$ As shown in #$7,$ Julie budgeted that she would spend $$2\mathrm{.}40$ for a carton of $12$ eggs and that eachcake would require $6$ eggs and we produced $60$ cakes. She also budgeted that she would pay herbakers $$20/$hr and that each cake would take $6$ hours to complete. If things do not go how Julieplans, she needs to be able to figure out why.If Julie ends up paying $$3\mathrm{.}00$ for a carton of $12$ eggs and uses $7$ eggs in each cake, what would bethe direct materials variances?If Julie ends up paying her bakers $$18/$hr$,$ but each cake requires $8$ hours to make, what would bethe direct labor variance?Assuming there are no other variances, what was the budgeted cost for a cake in terms of eggsand baker wages and how does the actual cost compare?BONUS POINTS!Now that you have completed the case study and understand Julie$$s business, I urge to you brainstormabout anything Julie may not be taking into considera$$on$.$ Can you think of any business$-$related coststhat she may not be taking into considera$$on or any mistakes she made in her decisions above? List $10$expenses that she did not consider and$/$or mistakes Julie made and write $2-3$ sentences about how thesemay affect her ability to run her business successfully