Hi guys I hope your doing well. I know this is a long case but I do not need you to do all of the questions just 1 of them. The only reason I provided screenshot is so you can have the background knowledge you needed for the information. The only question I need is answered out of the following questions are:

David may now be open to buying new equipment if the financial details make sense. Research the cost of buying and financing a new grain hopper and brewhouse equipment.David cannot pay cash but would consider financing the purchase. You must present this information to David. What interest rate would you finance it for?

In order to answer this question could you provide excel sheet and give formula on how you came to your answer. I apolgoize beforehand and thank you so much!

Arizona Microbrewery, Inc. (AMI) Instructions for Case 2 In an executive memo to David Tucker address the issues discussed below. Your submission should read like something you would present to a client with all supporting documentation and schedules included as appendices. Submissions should be well-written, presented in good form, and free of typos as well as spelling and grammar errors. Your discussion should be thoughtful and comprehensive, while also clear and concise. You will lose points if your writing is unclear or verbose. David hired you to make his life easier. He does not have the brain power to decipher what you are trying to say nor the time to read an unnecessarily long memo. In your previous memo, you were working with David in 2019, before the pandemic. Fast forward to today. You have been working with David and AMI for the last few years. They are still small but growing. Starting your own microbrewery is not easy. While your consulting time with David is limited, due to his budget, he constantly reminds you that your advice has allowed AMI to survive through the pandemic and its aftereffects. It is now 2023 and David has hired you to really shake things up. He wants your help preparing AMI's 2024 budget, but he doesn't just want you to "roll forward" what you prepared for him in previous years. Instead, he wants you to help him optimize his operations and profitability. Anything that is reasonably practical is on the table. In order to provide the best consulting services, you will need to learn about the industry and how it has evolved over the past few years. Knowing more about the industry will help you make the best recommendations to boost revenues and cut costs. At a minimum, your memo should include a series of recommendations and a budget that incorporates them. Your manager has spoken to David about his expectations and has prepared the following information for you to consider when preparing your memo. Like any good consultant, you're responsible to fact check David's claims so you can provide him with the best possible service. Assuming David is right and telling him what he already knows provides no value to him or AMI. - David would like to see a budget for 2024 that is very ambitious. He wants to pay himself $50,000 in salary and earn after tax (net income) $100,000. - David thinks he can raise the prices per case for each of the beer lines. Not only has inflation increased the price of beer, but David thinks he can benchmark against other microbreweries that are selling at a higher price. Assume AMI's beer quality is high. - Relatedly, what is the demand for beer? David is not sure how big the market is, if he has tapped into the best market, and if whatever he produces will sell. - AMI must continue to produce and sell all four beer lines to satisfy the distributors and end users. However, the sales mix can change if you have ideas. - David thinks AMI should change their distribution and packaging strategy but does not know what to do. - AMI's facility has excess space available, David just does not know how to use it. - In terms of costs, direct material costs should remain consistent with current commodity prices. It appears that the commodity prices for hops and barley vary from year to year based on various factors. This is to be expected since they are dependent on the weather for the crop size each year. David is always frustrated when trying to predict direct material costs. 1 - David was paying $15 per hour for direct labor costs in 2018. He explicitly asked your manager to make some recommendations on what he should pay his hourly workers in 2024 . - David would also like your recommendation regarding the sales commission percentage. Incorporate your ideas into the budget and make sure to explain them to David. - David mentioned other variable costs have probably followed inflation in their increases each year from 2018 through 2023. - David says the fixed costs probably have increased roughly along with inflation each year from 2018 through 2023 (except for depreciation, which remains the same). However, he asked you to include in your budget any changes in fixed costs that would result from the recommendations you propose in your memo. - David may now be open to buying new equipment if the financial details make sense. Research the cost of buying and financing a new grain hopper and brewhouse equipment. David cannot pay cash but would consider financing the purchase. You must present this information to David. Your manager has requested the following be included in your memo to David: - You need to provide a budgeted contribution income statement complete with all supporting schedules (in good form) that support your final set of recommendations. You are free to propose anything you want, given the aforementioned details, except dropping a beer line. - Provide any additional budgets or schedules that will help David understand your recommendations and decide. Your recommendations should include explanations/rationale that David will understand and can process quickly. - The weighted average tax rate is 26.5%. Finally, David has asked you to perform an independent analysis of setting up a root beer division of AMI. His sister's friend dropped off the machine necessary to produce root beer, but because of the pandemic he never got around to moving production forward. Now he wants to take a closer look at this venture again with fresh eyes. Your manager has requested you prepare a budgeted contribution income statement complete with all supporting schedules (in good form). This budget will be for the year 2024, so the 2018 root beer information is stale and needs to be updated just like the beer data. Research should be performed regarding the current costs and selling prices associated with the craft root beer market. Your memo should walk David through your budget and supporting schedules with your explanations/rational so he can make a decision regarding opening a root beer division. Do not combine the root beer budget with the beer budget and assume the tax rate is 26.5%