BK2U is a mobile bike service that services and repairs bikes at customers' homes. It is geared to bicyclists who have invested in expensive bikes and are willing to pay for the convenience of a mobile service. The company is planning to launch the product in Vancouver. You are helping with their top-down sales forecast and therefore want to find out the: Percentage of urban-dwelling Canadians that own premium bicycles Number of trained bicycle repair staff you can afford Number of bike repair appointments one employee can complete in one day Number of mobile bike repair vans you can afford Jana and Cindy are planning to launch UP-PACK, a business that upcycles disposable masks into high quality packaging material. They think it can be a viable business but they need your advice; they want to make sure they aren't taking too big of a risk. Use the information below to create a 6 month cash budget. Based on their research of the industry, they plan to provide credit terms to their customers of 35% payment during the month of sale and 65% payment in the month following sale. Manufacturing supply costs are relatively low since they can get free used disposable masks from health care facilities but there are costs incurred to clean and upcycle the masks. They project their costs of goods sold (COGS) to be 24% of each month's sales. They anticipate having to pay 60% of these costs in the month of purchase and 40% in the month following purchase. Fortunately, Jana's brother has a large empty garage that they can operate in for the first year which saves them from renting space. They are going to contribute to his utility costs as listed in the chart below. Because they are selling to businesses, their marketing budget is largely allocated to personal selling (reflected in payroll costs). Jana and Cindy have $5,500 set aside as their beginning cash balance. Going forward, they do not want their cash balance to go below $3,000. Because they have strong personal credit histories and other sources of household income from their respective partners, they have been approved for a bank line of credit at a rate of 6%. If they need to use this line of credit, they will pay interest in the month following borrowing. Once they have a cash surplus, they will pay down as much of the outstanding line of credit as possible. Round all amounts up to the nearest dollar when preparing the cash budget and then answer the multiple choice questions below by entering the correct answer letter into the associated text box. Provide ONLY the letter of the correct answer for each one (not the answer itself, or any punctuation marks) Cash Budget Q1 Total Receipts for February are: a) $14,000 b) $4,900 c) $8,125 d) $13,025 A. Cash Budget Q2 Net Purchases for March are: a) $4,320 b) $10,800 c) $7,200 d) $3,936 A Cash Budget Q3 Total Purchase Disbursements for March are: a) $4,320 b) $10,800 c) $7,200 d) $3,936 A Cash Budget Q4 Line of Credit Interest for May is: a) $591 b) $7,395 c) $49 d) $5,443 A. Cash Budget Q5 Financing Required in April is: a) \$3,000 b) $2,021 c) $0 d) $194 Cash Budget Q6 Ending Cash Balance in June is: a) $3,000 b) $7,799 c) $4,799 d) $2,596 A/ Question 3 (1 point) Jerry and Ben would like to open a new business next year. They have worked hard on their cost projections and believe they can start with fixed costs of $60,000. Their customer research indicates that they can sell their product for $12.50 and variable costs are expected to be $3.50 per unit. They know they have done plenty of research but are still nervous about the risk involved with this new venture. How many units would Jerry and Ben have to sell to break-even? 6,667 units 4,800 units 3,750 units 17,143 units Question 4 (1 point) Sheldon is considering opening a hockey clinic as a side business but is worried about whether he can manage the risk. He anticipates fixed costs of $120,000, sales of $400,000 and costs of goods sold of $80,000. What sales volume would Sheldon need to break-even? $150,000$363,637$600,000$179,105 Selena would like to start a new venture after she finishes school. She projects that her fixed costs will be $53345. She expects that she can sell her product for $24 and that her variable costs per unit will be $2. She knows she has done her research but she is still worried about the risk involved with this new venture. How many units would she have to sell to break-even? Your