Development of the case The case assumes students will open a surgical gloves making unit on the Colombia in South America. We have gone through the existing surgical gloves making unit,read industry report, and have done some research on expected minimum cost to be incurred in operating the business. A surgical gloves,is meant to be prevent surgical site infections and protect the surgeon,. Surgical gloves are disposable devices used during medical procedures. They prevent the spread of infection between sick and well persons. The gloves making business has a great scope of expansion as compared to a home-based business and offers great returns. With the surge in pollution levels and viros-prone lifestyles, wearing gloves while stepping out has become mandatory during medical procedures. Starting a gloves making business the right way will help you thrive in the longrun. Cost needed to make surgical gloves: Assume number of units sold 45000 unit Fixed cost: Required of the case: In order to answer the questions below, you will need to make assumptions, 1. Using the above information, determine the unit of surgical gloves you will need to sell to achieve the break- even . In order to do this, you will need to set a sales price per unit aswell as variable cost per unit. (Hint: Keep all costs on yearly basis throuout your analysis) 2. Now build in a salary for yourself and determine the amount of surgical mask you will need to sell to break even. 3. Support your answer with illustrating the Break even graph. Research Driven Activity:Question 4(Flexible Budget) Saurashtra Co. Ltd. wishes to arrange overdraft facilities with its bankers from the period August to October 2010 when it will be manufacturing mostly for stock. Prepare a cash budget for the above period from the following data given below: Additional Information: (a) Cash on hand 1-08-2010 Rs.25,000. (b) 50% of credit sales are realized in the month following the sale and the remaining 50% in the second month following. Creditors are paid in the month following the month of purchase. (c) Lag in payment of manufacturing expenses one month. (d) Lag in payment of other expenses one month. Development of the case The case assumes students will open a surgical gloves making unit on the Colombia in South America. We have gone through the existing surgical gloves making unit,read industry report, and have done some research on expected minimum cost to be incurred in operating the business. A surgical gloves,is meant to be prevent surgical site infections and protect the surgeon,. Surgical gloves are disposable devices used during medical procedures. They prevent the spread of infection between sick and well persons. The gloves making business has a great scope of expansion as compared to a home-based business and offers great returns. With the surge in pollution levels and viros-prone lifestyles, wearing gloves while stepping out has become mandatory during medical procedures. Starting a gloves making business the right way will help you thrive in the longrun. Cost needed to make surgical gloves: Assume number of units sold 45000 unit Fixed cost: Required of the case: In order to answer the questions below, you will need to make assumptions, 1. Using the above information, determine the unit of surgical gloves you will need to sell to achieve the break- even . In order to do this, you will need to set a sales price per unit aswell as variable cost per unit. (Hint: Keep all costs on yearly basis throuout your analysis) 2. Now build in a salary for yourself and determine the amount of surgical mask you will need to sell to break even. 3. Support your answer with illustrating the Break even graph. Research Driven Activity:Question 4(Flexible Budget) Saurashtra Co. Ltd. wishes to arrange overdraft facilities with its bankers from the period August to October 2010 when it will be manufacturing mostly for stock. Prepare a cash budget for the above period from the following data given below: Additional Information: (a) Cash on hand 1-08-2010 Rs.25,000. (b) 50% of credit sales are realized in the month following the sale and the remaining 50% in the second month following. Creditors are paid in the month following the month of purchase. (c) Lag in payment of manufacturing expenses one month. (d) Lag in payment of other expenses one month