create graphs of direct materials analysis, depreciation expense, cost items reference sheets, fc & vc, and a CVP income statement.
The Business Opportunity You have been presented a business opportunity by your cousin to open a snack or beverage kiosk in a new beach resort in Batangas that she is managing. You have done some research on the market potential of the resort and you have narrowed your choice to selling milkshakes in the kiosk spot being offered to you. The beach resort is quite near to the town proper and a few establishments like schools and a church are in its proximity and this offers much potential to your milkshake kiosk. You have identified that a unique feature of your milkshake is that it is served with flavored straws that match the flavor of the chosen milkshakes by customers. You have your homework and completed all tasks relating to product development, cost and investment information for a milkshake kiosk. The data needs to be organized so that you can decide on certain issues like pricing and forecasting. The translation of data items gathered needs some careful identification, filtering, and sorting for things to make sense. It's a good thing that you have taken the chapter on CVP to heart back in college, as it will now be put to good use. After several iterations on the recipe, the set of standards quantities that you plan to use for the milkshake production of two cup sizes are as follows: Direct Materials 8 oz cup 12 oz cup Whole milk 2 oz 3 Oz Cream 1 oz 1.5 oz Sugar 0.5 cup 0.75 cup Vanilla Ice Cream 2 oz 3 Oz Ice 2 oz Flavorings 10 grams 15 grams Flavored straws 1 piece 1 piece Cup 8 oz 1 piece Cup 12 oz 1 piece 3 OZ An initial result of ingredient cost canvassing is as follows: Items PhP UOM Whole milk 80 per liter (33 oz) Cream 200 per liter (33 oz) Sugar 50 per kg (4 cups) Vanilla Ice Cream 400 per 1.5 L (50 oz) Ice 50 per kg (35 oz) Flavorings Flavored straws Cup 8 oz 550 per kg (1000 grams) 12 per straw 200 per 100 Cup 12 oz 250 per 100 pcs Building and furnishing the kiosk and its outside seating area will comprise of the following capital expenditures. Note that you have free rein in assigning the estimated useful life for the depreciable items presented. PhP 96,000 50,000 Capital expenditures milk shake maker 8 units @ P12,000 each refrigerator freezer countertop tables and benches kiosk improvements by a contractor 55,000 42,000 25,000 65,000 The list of operating expenses that you have gathered included the following: PhP Expenses Rent of kiosk 20,000 month of gross Percentage rent 5% sales Cleaning and other supplies 6,000/month Part-time salary and benefits 10,000 per employee see comparative data from another Electricity kiosk see comparative data from another Water kiosk Advertising 2.000 month Insurance 4.800 per year 500 month Maintenance Business license and permits 7,000 per year The kiosk space will be rented out to you at a fixed monthly rate of P20,000 plus an additional 5% of all your gross sales. The 5% portion includes the cleaning, maintenance, and security expenses of the public area (outside of the kiosk space) as well as the marketing and promotion of the resort which will include your store's information. You plan to hire two part-time employees who will be trained to process the milkshake and interact with customers. Even if the beach resort will have its own marketing and promotion efforts, you still want your simple advertising campaign through the use of influencers and regular posts in the social media space. Knowing that electricity and water expenses differ greatly depending on the nature of one's operations, your cousin was very generous in obtaining and sharing with you the following information from a similar beverage kiosk in a nearby resort: Month Cups sold Electricity PhP Water Php January 3,200 4,680 1.210 February 6,050 7,958 2,065 March 7,230 9,315 2,419) April 8,910 11,247 2,923 May 6,530 8,510 2,209 June 3,422 4,935 1,277 July 4,576 6,262 1.623 August 3,689 5,242 1,357 September 5,580 7,417 1.924 October 5,700 7,555 1,960 November 6,230 8,165 2,119 December 7,000 9,050 2,350 The Business Opportunity You have been presented a business opportunity by your cousin to open a snack or beverage kiosk in a new beach resort in Batangas that she is managing. You have done some research on the market potential of the resort and you have narrowed your choice to selling milkshakes in the kiosk spot being offered to you. The beach resort is quite near to the town proper and a few establishments like schools and a church are in its proximity and this offers much potential to your milkshake kiosk. You have identified that a unique feature of your milkshake is that it is served with flavored straws that match the flavor of the chosen milkshakes by customers. You have your homework and completed all tasks relating to product development, cost and investment information for a milkshake kiosk. The data needs to be organized so that you can decide on certain issues like pricing and forecasting. The translation of data items gathered needs some careful identification, filtering, and sorting for things to make sense. It's a good thing that you have taken the chapter on CVP to heart back in college, as it will now be put to good use. After several iterations on the recipe, the set of standards quantities that you plan to use for the milkshake production of two cup sizes are as follows: Direct Materials 8 oz cup 12 oz cup Whole milk 2 oz 3 Oz Cream 1 oz 1.5 oz Sugar 0.5 cup 0.75 cup Vanilla Ice Cream 2 oz 3 Oz Ice 2 oz Flavorings 10 grams 15 grams Flavored straws 1 piece 1 piece Cup 8 oz 1 piece Cup 12 oz 1 piece 3 OZ An initial result of ingredient cost canvassing is as follows: Items PhP UOM Whole milk 80 per liter (33 oz) Cream 200 per liter (33 oz) Sugar 50 per kg (4 cups) Vanilla Ice Cream 400 per 1.5 L (50 oz) Ice 50 per kg (35 oz) Flavorings Flavored straws Cup 8 oz 550 per kg (1000 grams) 12 per straw 200 per 100 Cup 12 oz 250 per 100 pcs Building and furnishing the kiosk and its outside seating area will comprise of the following capital expenditures. Note that you have free rein in assigning the estimated useful life for the depreciable items presented. PhP 96,000 50,000 Capital expenditures milk shake maker 8 units @ P12,000 each refrigerator freezer countertop tables and benches kiosk improvements by a contractor 55,000 42,000 25,000 65,000 The list of operating expenses that you have gathered included the following: PhP Expenses Rent of kiosk 20,000 month of gross Percentage rent 5% sales Cleaning and other supplies 6,000/month Part-time salary and benefits 10,000 per employee see comparative data from another Electricity kiosk see comparative data from another Water kiosk Advertising 2.000 month Insurance 4.800 per year 500 month Maintenance Business license and permits 7,000 per year The kiosk space will be rented out to you at a fixed monthly rate of P20,000 plus an additional 5% of all your gross sales. The 5% portion includes the cleaning, maintenance, and security expenses of the public area (outside of the kiosk space) as well as the marketing and promotion of the resort which will include your store's information. You plan to hire two part-time employees who will be trained to process the milkshake and interact with customers. Even if the beach resort will have its own marketing and promotion efforts, you still want your simple advertising campaign through the use of influencers and regular posts in the social media space. Knowing that electricity and water expenses differ greatly depending on the nature of one's operations, your cousin was very generous in obtaining and sharing with you the following information from a similar beverage kiosk in a nearby resort: Month Cups sold Electricity PhP Water Php January 3,200 4,680 1.210 February 6,050 7,958 2,065 March 7,230 9,315 2,419) April 8,910 11,247 2,923 May 6,530 8,510 2,209 June 3,422 4,935 1,277 July 4,576 6,262 1.623 August 3,689 5,242 1,357 September 5,580 7,417 1.924 October 5,700 7,555 1,960 November 6,230 8,165 2,119 December 7,000 9,050 2,350
