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questions were added in clearer form.
Table (Kevery prue) Just for fun (CSR) 360 Weekend Course 360 Jeune Chef 312 Group Classes 312 Total 1.344 Malaspina Culinary School Revenue / Profit Projections Volumes: Culinary instructor hours Expected student enrolments course offerings per year 300 30 300 30 260 13 260 13 1,120 86 $399 Per Student: $399 $399 $399 Fees Cost(Refer Table 3) Contribution (5) Contribution (5) 298.429 $100,571 25% 298.429 $100.571 25% 298.429 $100.571 25% 298,429 $100.571 25% Total: Contribution $30,171 $30,171 $26,149 $26,149 $112.640 Common Costs Depreciation Utilities Communication Costs Rental Costs Insurance Costs Cleaning and Maintenance Costs Advertising and Marketing Profit (loss) before tares 14,000 30,000 12,000 96,000 5,000 21,900 86,000 264,900 S(152,260 Table 3 (Cost per student calculations) Remarks Cost heading Culinary Instructor's compensation Costs 80,640 Per instructor hour - $60 48,000 Per students $40 >> 600 students 2 days . $40 - $48,000 Lunch & Refreshments (only for weekend courses) Course Materials 44,800 Per student - $40>>1120 students $40 Grocery, Produce and other food items Grocery, Produce and other food items Total 124,800 For 4-week courses, per student per hour $10 >> 260+260 students 3 days 2 hours 4 weeks $10 36,000 For weekend courses, per student/per hour $5>> 300+300 students 2 days. 6 hours $3 $334,240 Number of students Cost per student 1,120 $298.429 Remarks Cost Type Activity driver Direct Variable costs Number of students Table 2 (Costs) Costerading Grocery Direct Variable costs Number of students Grocery pod Description Fores, per student per hour 10 For worse per student per ht Free 5.00 per student Pret 5:40 Intractors compensation details per Instructor's compensation 20 Cooking stations 55.000 chful lide 10 year No salvese valueCost $100,000 S7000 per cooking station Equipment Catlery, 5.2.500 per month Direct Verile costs Number of students Direct Variable costs Number of students Only for weekend courses Direct Variable costs Number of Instructional hours Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student hours Indirect Semi Number of student Utility consumption is a function of students' Variable hours presence are Indirect Semi Common costs Cannot be traced to course groups Variable Indirect Fixed Costs Number of student Space usage is a function of students presence hours Indirected Costs Common costs Cannot be traced to courses Indirect Fixed Costs Number of student Cleaning maintenance requirements is a hours function of students' presence and usage of facilities Direct Fixed Costs Number of courses See note below which can be translated to per student Communication Costs $1.000 per month Rental Costa Insurance core Cleaning & Maintenance 58.000 per month ES000 3 hours per day, 365 days 520 per hour Advertising Marketing Marketing and Advertising costs are approximately $1,000 per course offering or $86,000 per year Note: The strategic goal is to increase the demand for weekend courses as it is yet an untapped market; The fees for such courses can also be increased and there may be cross marketing opportunities of the 4-week courses. Hence Advertising/Marketing & Promotional expenses for the weekend programs (on subsequent verification, after the tax accountant finalized the projections) may work to be nearly $1,250 per weekend course offering, and the balance can be allocated for the 4-week courses. Duration Table 1 - Culinary courses Name Targeted market Segment Just for fun Fun (team building) (CSR) cooking lessons for organizations and its employees as part of their CSR initiative Duration details 2 days a wook 6 hours a day of courses planned deals per Perear 30 10 Weekend Weekend Course Weekend 30 10 Lessons for young kids/community members who are learning how to cook, with a focus on healthy meals 2 days week 6 hours a day Jeune Chef 4 weeks 13 20 Individual lessons for professionals/semi- professionals who aspire to become better rated chefs 3 days weck, 2 hours a day Group Classes wocks 13 20 Group lessons for amateur groups, who wish to enroll together as friends/family and learn some quick cooking skills for everyday meals 3 days a weck, 2 hours a day recommendations based on your quantitative and qualitative analyses. Critically examine the calculations and projections made by the tax-accountant and address the following: 1. Provide an alternate set of calculations (in contribution format), taking into account, the information in Tables 1 to 4, to provide further insight (if any) to Sue. Make your assumptions explicit, while making these calculations. {No page limit) 2. Suggest some strategic and operational choices tht ue might have to make, based on clear quantitative and qualitative analyses of her situation, to improve the profitability of MCS and achieve its mission. {1.5-page limit) 3. Describe the management accounting tool that you may have used to come up with the alternate projections in 1) above. Discuss the benefits and limitations of this tool. {1.5- page limit) 4. Discuss other factors would Sue need to consider before going ahead with the project. {1- page limit) Prepare a memo for Sue and make recommendations based on your quantitative and qualitative analyses. Critically examine the calculations and projections made by the tax-accountant and address the following: 1. Provide an alternate set of calculations in contribution format), taking into account, the information in Tables 1 to 4, to provide further insight (if any) to Sue. Make your assumptions explicit, while making these calculations. 2. Suggest some strategic and operational choices that Sue might have to make, based on clear quantitative and qualitative analyses of her situation, to improve the profitability of MCS and achieve its mission. 3. Describe the management accounting tool that you may have used to come up with the alternate projections in 1) above. Discuss the benefits and limitations of this tool. 4. Discuss other factors would Sue need to consider before going ahead with the project. Duration Table 1 - Culinary courses Name Targeted market Segment Just for fun Fun (team building) (CSR) cooking lessons for organizations and its employees as part of their CSR initiative Duration details 2 days a week/6 hours a day # of courses planned # of students per per year course 30 10 Weekend Weekend 30 Weekend Course 10 Lessons for young kids/community members who are learning how to cook, with a focus on healthy meals 2 days a week/6 hours a day 4 weeks 13 20 Jeune Chef Individual lessons for professionals/semi- professionals who aspire to become better rated chefs 3 days a week, 2 hours a day 13 Group Classes 20 Group lessons for amateur 4 weeks groups, who wish to enroll together as friends/family and learn some quick cooking skills for everyday meals 3 days a week, 2 hours a day City amer Remarks Direct/Variable costs Number of students Direct Variable costs Number of students Red Grocery, produce and other food items Grocery, produce and other food items Course Materials Lunch & Refreshments Instructor's compensation 20 Cooking stations Equipment/Cutlery, cte for the cooking stations Utilities IR TT For 4-week courses, per student per hour $10 For weekend coure, per student per hours For all courses S 40 per student Per day student 5.40 Instructor's compensation details per instructor hour 560 $5,000 each: Useful life 10 years, No alvage value Cout $100.000 $2,000 per cooking station $2.500 per month Communication Costs $1,000 per month Direct Variable costs Number of students DigestVariable costs Number of students Only for weekend courses Duct Variable costs Number of Instructional hours Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student hours Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student hours Indirect Semi Number of student Utility consumption is a function of students Variak hours presence Indirect Semi Common costs Cannot be traced to course groups Variable Indirect Fixed Costs Number of student Space usage is a function of students presence hours Indirect Fixed Costs Common costs Cannot be traced to course groups Indirect Fixed Costs Number of student Cleaning maintenance requirements is a hours function of students presence and usage of facilities Direct Fixed Costs Number of courses See note below which can be translated to per Rental Costs $4,000 per month $5.000 Insurance costs per year Cleaning & Maintenance 3 hours per day, 365 days @ $20 per hour Advertising Marketing Marketing and Advertising costs are approximately $1,000 per course offering or $86,000 per year Note: The strategic goal is to increase the demand for weekend courses as it is yet an untapped market. The fees for such courses can also be increased and there may be cross marketing opportunities of the 4-week courses. Hence Advertising Marketing & Promotional expenses for the weekend programs (on subsequent verification, after the tax accountant finalized the projections) may work to be nearly $1,250 per weekend course offering, and the balance can be allocated for the 4-week courses. Table 3 (Cost per student calculations) Remarks Cost heading Culinary Instructor's compensation Costs 80,640 Per instructor hour = $60 48,000 Per students $40 >> 600 students * 2 days * $40 = $48,000 Lunch & Refreshments (only for weekend courses) Course Materials Grocery, Produce and other food items Grocery, Produce and other food items Total 44,800 Per student - $40>>1120 students * $40 124,800 For 4-week courses, per student/per hour $10 >> 260+260 students * 3 days * 2 hours *4 weeks* $10 36,000 For weekend courses, per student/per hour $5>> 300+300 students * 2 days * 6 hours * $5 $334,240 Number of students Cost per student 1,120 $298.429 Table 4 (Revenue/Profitability projections) Just for fun (CSR) 360 Weekend Course 360 Jeune Cher 312 Group Classes 312 Total 1.344 Malaspina Culinary School Revenue / Profit Projections Volumes: Culinary instructor hours Expected student enrolments course offerings per year 300 30 300 30 260 13 260 13 1.120 86 $399 $399 $399 Per Student: $399 Fees Cost (Refer Table 3) Contribution ($) Contribution (%) 298.429 $100,571 25% 298.429 $100.571 25% 298,429 $100,571 25% 298.429 $100,571 25% Total: Contribution $30,171 $30.171 $26.149 $26.149 $112,640 Common Costs Depreciation Utilities Communication Costs Rental Costs Insurance Costs Cleaning and Maintenance Costs Advertising and Marketing Profit (loss) before taxes 14,000 30,000 12,000 96,000 5.000 21,900 86,000 264.900 S(152.260) Table (Kevery prue) Just for fun (CSR) 360 Weekend Course 360 Jeune Chef 312 Group Classes 312 Total 1.344 Malaspina Culinary School Revenue / Profit Projections Volumes: Culinary instructor hours Expected student enrolments course offerings per year 300 30 300 30 260 13 260 13 1,120 86 $399 Per Student: $399 $399 $399 Fees Cost(Refer Table 3) Contribution (5) Contribution (5) 298.429 $100,571 25% 298.429 $100.571 25% 298.429 $100.571 25% 298,429 $100.571 25% Total: Contribution $30,171 $30,171 $26,149 $26,149 $112.640 Common Costs Depreciation Utilities Communication Costs Rental Costs Insurance Costs Cleaning and Maintenance Costs Advertising and Marketing Profit (loss) before tares 14,000 30,000 12,000 96,000 5,000 21,900 86,000 264,900 S(152,260 Table 3 (Cost per student calculations) Remarks Cost heading Culinary Instructor's compensation Costs 80,640 Per instructor hour - $60 48,000 Per students $40 >> 600 students 2 days . $40 - $48,000 Lunch & Refreshments (only for weekend courses) Course Materials 44,800 Per student - $40>>1120 students $40 Grocery, Produce and other food items Grocery, Produce and other food items Total 124,800 For 4-week courses, per student per hour $10 >> 260+260 students 3 days 2 hours 4 weeks $10 36,000 For weekend courses, per student/per hour $5>> 300+300 students 2 days. 6 hours $3 $334,240 Number of students Cost per student 1,120 $298.429 Remarks Cost Type Activity driver Direct Variable costs Number of students Table 2 (Costs) Costerading Grocery Direct Variable costs Number of students Grocery pod Description Fores, per student per hour 10 For worse per student per ht Free 5.00 per student Pret 5:40 Intractors compensation details per Instructor's compensation 20 Cooking stations 55.000 chful lide 10 year No salvese valueCost $100,000 S7000 per cooking station Equipment Catlery, 5.2.500 per month Direct Verile costs Number of students Direct Variable costs Number of students Only for weekend courses Direct Variable costs Number of Instructional hours Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student hours Indirect Semi Number of student Utility consumption is a function of students' Variable hours presence are Indirect Semi Common costs Cannot be traced to course groups Variable Indirect Fixed Costs Number of student Space usage is a function of students presence hours Indirected Costs Common costs Cannot be traced to courses Indirect Fixed Costs Number of student Cleaning maintenance requirements is a hours function of students' presence and usage of facilities Direct Fixed Costs Number of courses See note below which can be translated to per student Communication Costs $1.000 per month Rental Costa Insurance core Cleaning & Maintenance 58.000 per month ES000 3 hours per day, 365 days 520 per hour Advertising Marketing Marketing and Advertising costs are approximately $1,000 per course offering or $86,000 per year Note: The strategic goal is to increase the demand for weekend courses as it is yet an untapped market; The fees for such courses can also be increased and there may be cross marketing opportunities of the 4-week courses. Hence Advertising/Marketing & Promotional expenses for the weekend programs (on subsequent verification, after the tax accountant finalized the projections) may work to be nearly $1,250 per weekend course offering, and the balance can be allocated for the 4-week courses. Duration Table 1 - Culinary courses Name Targeted market Segment Just for fun Fun (team building) (CSR) cooking lessons for organizations and its employees as part of their CSR initiative Duration details 2 days a wook 6 hours a day of courses planned deals per Perear 30 10 Weekend Weekend Course Weekend 30 10 Lessons for young kids/community members who are learning how to cook, with a focus on healthy meals 2 days week 6 hours a day Jeune Chef 4 weeks 13 20 Individual lessons for professionals/semi- professionals who aspire to become better rated chefs 3 days weck, 2 hours a day Group Classes wocks 13 20 Group lessons for amateur groups, who wish to enroll together as friends/family and learn some quick cooking skills for everyday meals 3 days a weck, 2 hours a day recommendations based on your quantitative and qualitative analyses. Critically examine the calculations and projections made by the tax-accountant and address the following: 1. Provide an alternate set of calculations (in contribution format), taking into account, the information in Tables 1 to 4, to provide further insight (if any) to Sue. Make your assumptions explicit, while making these calculations. {No page limit) 2. Suggest some strategic and operational choices tht ue might have to make, based on clear quantitative and qualitative analyses of her situation, to improve the profitability of MCS and achieve its mission. {1.5-page limit) 3. Describe the management accounting tool that you may have used to come up with the alternate projections in 1) above. Discuss the benefits and limitations of this tool. {1.5- page limit) 4. Discuss other factors would Sue need to consider before going ahead with the project. {1- page limit) Prepare a memo for Sue and make recommendations based on your quantitative and qualitative analyses. Critically examine the calculations and projections made by the tax-accountant and address the following: 1. Provide an alternate set of calculations in contribution format), taking into account, the information in Tables 1 to 4, to provide further insight (if any) to Sue. Make your assumptions explicit, while making these calculations. 2. Suggest some strategic and operational choices that Sue might have to make, based on clear quantitative and qualitative analyses of her situation, to improve the profitability of MCS and achieve its mission. 3. Describe the management accounting tool that you may have used to come up with the alternate projections in 1) above. Discuss the benefits and limitations of this tool. 4. Discuss other factors would Sue need to consider before going ahead with the project. Duration Table 1 - Culinary courses Name Targeted market Segment Just for fun Fun (team building) (CSR) cooking lessons for organizations and its employees as part of their CSR initiative Duration details 2 days a week/6 hours a day # of courses planned # of students per per year course 30 10 Weekend Weekend 30 Weekend Course 10 Lessons for young kids/community members who are learning how to cook, with a focus on healthy meals 2 days a week/6 hours a day 4 weeks 13 20 Jeune Chef Individual lessons for professionals/semi- professionals who aspire to become better rated chefs 3 days a week, 2 hours a day 13 Group Classes 20 Group lessons for amateur 4 weeks groups, who wish to enroll together as friends/family and learn some quick cooking skills for everyday meals 3 days a week, 2 hours a day City amer Remarks Direct/Variable costs Number of students Direct Variable costs Number of students Red Grocery, produce and other food items Grocery, produce and other food items Course Materials Lunch & Refreshments Instructor's compensation 20 Cooking stations Equipment/Cutlery, cte for the cooking stations Utilities IR TT For 4-week courses, per student per hour $10 For weekend coure, per student per hours For all courses S 40 per student Per day student 5.40 Instructor's compensation details per instructor hour 560 $5,000 each: Useful life 10 years, No alvage value Cout $100.000 $2,000 per cooking station $2.500 per month Communication Costs $1,000 per month Direct Variable costs Number of students DigestVariable costs Number of students Only for weekend courses Duct Variable costs Number of Instructional hours Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student hours Indirect Fixed Costs Number of student Depreciation is a factor of the extent of student hours Indirect Semi Number of student Utility consumption is a function of students Variak hours presence Indirect Semi Common costs Cannot be traced to course groups Variable Indirect Fixed Costs Number of student Space usage is a function of students presence hours Indirect Fixed Costs Common costs Cannot be traced to course groups Indirect Fixed Costs Number of student Cleaning maintenance requirements is a hours function of students presence and usage of facilities Direct Fixed Costs Number of courses See note below which can be translated to per Rental Costs $4,000 per month $5.000 Insurance costs per year Cleaning & Maintenance 3 hours per day, 365 days @ $20 per hour Advertising Marketing Marketing and Advertising costs are approximately $1,000 per course offering or $86,000 per year Note: The strategic goal is to increase the demand for weekend courses as it is yet an untapped market. The fees for such courses can also be increased and there may be cross marketing opportunities of the 4-week courses. Hence Advertising Marketing & Promotional expenses for the weekend programs (on subsequent verification, after the tax accountant finalized the projections) may work to be nearly $1,250 per weekend course offering, and the balance can be allocated for the 4-week courses. Table 3 (Cost per student calculations) Remarks Cost heading Culinary Instructor's compensation Costs 80,640 Per instructor hour = $60 48,000 Per students $40 >> 600 students * 2 days * $40 = $48,000 Lunch & Refreshments (only for weekend courses) Course Materials Grocery, Produce and other food items Grocery, Produce and other food items Total 44,800 Per student - $40>>1120 students * $40 124,800 For 4-week courses, per student/per hour $10 >> 260+260 students * 3 days * 2 hours *4 weeks* $10 36,000 For weekend courses, per student/per hour $5>> 300+300 students * 2 days * 6 hours * $5 $334,240 Number of students Cost per student 1,120 $298.429 Table 4 (Revenue/Profitability projections) Just for fun (CSR) 360 Weekend Course 360 Jeune Cher 312 Group Classes 312 Total 1.344 Malaspina Culinary School Revenue / Profit Projections Volumes: Culinary instructor hours Expected student enrolments course offerings per year 300 30 300 30 260 13 260 13 1.120 86 $399 $399 $399 Per Student: $399 Fees Cost (Refer Table 3) Contribution ($) Contribution (%) 298.429 $100,571 25% 298.429 $100.571 25% 298,429 $100,571 25% 298.429 $100,571 25% Total: Contribution $30,171 $30.171 $26.149 $26.149 $112,640 Common Costs Depreciation Utilities Communication Costs Rental Costs Insurance Costs Cleaning and Maintenance Costs Advertising and Marketing Profit (loss) before taxes 14,000 30,000 12,000 96,000 5.000 21,900 86,000 264.900 S(152.260)
