Deliverable #1

The Operating Budget (Week 3)

1. Input the sales volume, as projected by your Field Sales managers.
2. Input your forecast product mix, as provided by the Marketing department.
3. Input the efficiency rate for your direct labor, as projected by the VP of Manufacturing.
4. Input the sales commission, as provided by the VP of Sales and the department's fixed costs.
5. Input the administrative fixed costs as provided by the CFO.
6. Calculate and comment on the break-even point.
7. Calculate the sales volume needed to reach a target profit and comments.

The Cash Budget (Week 3)

1. If needed, copy the sales from the first quarter operating budget.
2. Using an aging of the collection period, as provided by the credit manager, forecast cash receipts by month.
3. Calculate the cash disbursements by month.
4. Determine the timing of a capital expenditure.
5. Determine the timing and amount of financing.

To see details of this assignment, go to the Week 3 Course Project: Deliverable #1 Overview page. Submit your deliverable(s) to the Week 3 Course Project: Deliverable #1 Submission page.

IVI12 YUUUUTIC MIUI LUULE K L M A 1 Prepare a Master Operating Budget for the First Quarter Buzz Pizza Target Market: adult learners, timestarved, poor time management Jan Feb April Total Qtr 5 6 Sales : Units (B) Price/unit $ $ - - $ $ - - $ $ . - Total Sales Revenue $ - Sales Price (all 2 topping): Large $ Medium $ Average Sales Price/unit (A) % Sales 10.50 8.50 0% wgtd. average $ - $ - $ - (A) Input the planned product mix (B) Input the forecast sale volume (C) Input the number of pizza made per hour (D) Input the sales commission as a % of revenue (E) Input the sales manager's salary (F) Input the office manager's salary (G) Calculate the breakeven point in sales units (H) Calculate the sales units needed to reach a $200,000 net income target, $ 2.55 $ 2.55 $ 2.55 10 Variable Costs (stated as per unit) 11 Production 12 Selling Total Variable Costs per unit Contribution Margin Direct Labor: (C) efficiency rate as minutes per pizza hourly labor cost plus fringe benefits $ Total direct labor per pizza $ 13 $ - 12.00 14 $ 2.55 $ - $ (2.55) $ #DIV/0! 2.55 $ - $ (2.55) $ #DIV/0! 2.55 - (2.55) #DIV/0! 15 CM per unit $ CM Ratio 16 0.25 - $ - $ .. 17 Fixed Costs 18 Selling (E) 19 Administration (F) 20 Total Fixed Costs Direct Materials: Dough cheese toppings caffinated tomato sauce Boxes Total direct material per pizza $ - $ - $ - $ - 0.50 0.75 1.00 0.05 2.55 21 Net Income $ - $ 23 24 Breakeven Point in sales units (G) Sales comissions (D) Total Variable Selling Expenses per pizza $ 26 Sales units for a Target Profit of $200,000 (H) 28 29 IVI12 YUUUUTIC MIUI LUULE K L M A 1 Prepare a Master Operating Budget for the First Quarter Buzz Pizza Target Market: adult learners, timestarved, poor time management Jan Feb April Total Qtr 5 6 Sales : Units (B) Price/unit $ $ - - $ $ - - $ $ . - Total Sales Revenue $ - Sales Price (all 2 topping): Large $ Medium $ Average Sales Price/unit (A) % Sales 10.50 8.50 0% wgtd. average $ - $ - $ - (A) Input the planned product mix (B) Input the forecast sale volume (C) Input the number of pizza made per hour (D) Input the sales commission as a % of revenue (E) Input the sales manager's salary (F) Input the office manager's salary (G) Calculate the breakeven point in sales units (H) Calculate the sales units needed to reach a $200,000 net income target, $ 2.55 $ 2.55 $ 2.55 10 Variable Costs (stated as per unit) 11 Production 12 Selling Total Variable Costs per unit Contribution Margin Direct Labor: (C) efficiency rate as minutes per pizza hourly labor cost plus fringe benefits $ Total direct labor per pizza $ 13 $ - 12.00 14 $ 2.55 $ - $ (2.55) $ #DIV/0! 2.55 $ - $ (2.55) $ #DIV/0! 2.55 - (2.55) #DIV/0! 15 CM per unit $ CM Ratio 16 0.25 - $ - $ .. 17 Fixed Costs 18 Selling (E) 19 Administration (F) 20 Total Fixed Costs Direct Materials: Dough cheese toppings caffinated tomato sauce Boxes Total direct material per pizza $ - $ - $ - $ - 0.50 0.75 1.00 0.05 2.55 21 Net Income $ - $ 23 24 Breakeven Point in sales units (G) Sales comissions (D) Total Variable Selling Expenses per pizza $ 26 Sales units for a Target Profit of $200,000 (H) 28 29