I only need Phase 1 3-5 and Phase 2 1a-1f thank you

Phase 4C-1F Case Study- Create & Analyze a Small Business Managerial Accounting Background Information The purpose of this project is to help you integrate the managerial accounting concepts we cover in class and apply them to a real-world business setting. This project contains three phases. In the first phase, you will analyze your costs and come up with a cost formula for your business. In the second and third phases, you will forecast sales, conduct cost-volume-profit analyses, prepare budgeted financial statements, and come up with strategies to improve the profitability of your business. After you complete all phases of this project, you will have a good understanding of how managerial accounting tools can help managers run a business Business Description: You will assume the role of a young entrepreneur eager to start a small company. As a start up company, your plan is as follows: Rent a retail kiosk inside the Boulevard Mall Purchase T-shirts to sell . . Each shirt will be imprinted with one of twelve beautiful pictures exclusively designed for your company by a famous artist who is a friend of yours. He has agreed super attractive T-shirt pictures for you each year at a special discount to design twelve Your target customers are teens and young adults who have your kind of good taste. . Your business is scheduled to launch on January 1, 2019 Start-up costs 1) The Boulevard Mall charges you $2,500 rent per month, which includes utilities, teleph cleaning, and maintenance. You estimated that 90% of the rent was related to factor operations and 10% was related to selling and administrative activities 2) You order white, cotton t-shirts from a T-shirt wholesaler. Each T-shirt costs (including taxes shipping, and handling) $3.75 to purchase. ps l l Binder-Read 1) To store T-shirts that were bought, but not yet imprinted, you rent a storage unit. The storage unit costs you $125 per month. 4n You agree to pay your artist friend a $10,000 annual contract fee plus a $300 design fee for each of the 12 T-shirt pictures designed. This same term is renewable for the next 3 years. Each T-shirt picture will only be used for one year. Therefore, in the second year, 12 new pictures will be designed at $300 each and another $10,000 annual contract fee will charged. be 5) You buy several items before that start of your business: la] A computer and a printer: You pay $6,000 (including taxes, shipping and handling) to buy a computer and a printer. You expect both to last about 3 years without salvage value. You will use the straight-line method for depreciation. You estimate that a computer and printer will be used for factory operations and 10% will be for seling and administrative activities. bout 90% of the lb] A heat press machine: You pay $4,500 (ncluding taxes, shipping and handiling) for a heat press machine. The machine is used for imprinting t-shirts only and is expected to last 3 years without salvage value. Ic] Transfer paper: Each case of transfer paper costs $400 and contains 1,000 sheets of 8.511 transfer paper. You expect to use one transfer paper to print one T-shirt. (d] Ink-jet cartridges: On average, each cartridge costs $50 and can make 500 prints. Each T- shirt requires one print. You also need to print flyers, etc. for selling and administrative purposes. For this non-manufacturing printing, you will print about one page for every 5 T- shirts sold. el Laser paper: You will buy several reams of laser paper to print promotion flyers, etc. Eack ream costs $20 and contains 200 sheets of 8.5011 laser paper. ps o) Wrapping paper and box: Each T-shirt costs about $0.20 to wrap and box.Wrapping and boxing are not considered manufacturing. 7) You hire three fellow students as part-time workers. They not only help you operate the machine, but also help fold, wrap and box T-shirts. Sometimes, three of them work at the same time. But, sometimes they don't because of their different class schedules. On average, printing 10 shirts will take one labor hour. Folding and packaging 20 shirts also will take about one labor hour. You pay each of your workers $8 per hour (I really need to adjust this for recent inflationl). Folding and wrapping are not considered manufacturing. You (the owner) do all the selling and administrative work by yourself. You pay yourself a total of $12,000 per year 8) 9) To protect your business from legal obligation, you purchase liability insurance that will cost $3,600 per year. 10) You hold four end-of-quarter parties to promote sales of your t-shirts. Each party costs you about $1,000. Phase One Requirements: d) Give your company an attractive name. (2) What and how much of your costs are variable costs? List your manufacturing and non-manufacturing variable cost items and present each of them in cost per T-shirt basis. (3) What and how much of your costs are fixed costs? List your manufacturing and non- manufacturing fixed cost items and present each of them in total cost per year a + bX format. Be sure to include both 4)Write out your yearly cost formula in Y manufacturing costs and non-manufacturing costs in the cost formula Assume that you make and sell 7,800 t-shirts in the first year. Use your cost formula to calculate your first year's total cost. If you sell these t-shirts at $15 each, how much would net profit be in the first year? Year ending 12/31/2019. To Prepare Your Report: Submit all answers into the appropriate drop box within Blackboard by the assigned due date. Proper formatting of all formal financial statements is one element of grading. One example of an exemplary submission has been included for your review (the data and all calculations have been removed so that only a shell remains, but the formatting is in contact) Phase Two: 1. Now you have developed your cost estimates, let's do some evaluations on this proposed business. Continue to assume that 7,800 t-shirts will be made and sold in the first year. What is your product cost per unit under absorption costing? What is your product cost per unit under variable costing? b) Based on the estimated sales level of 7,800 t-shirts for the first year, prepare your company's (forecasted) income statement for the year ended on 12/31/2019 using both (1) the traditional format based on the absorption costing and (2) the contribution format based on the variable costing Calculate contribution margin per T-shit and contribution margin ratio. a) Calculate how many T-shirts you need to sell in order to break-even. Calculate how much sales in dollars you need to make in order to break-even. (Use break-even formulas.) Calculate how many T-shirts you need to sel in order to make $10,000 target proft for the yoa year Continue to assume that 7,800 T-shirts will be made and sold during the first year. Calculate your (1) margin of safety and (2) degree of operating leverage (DoL) for your business. What do these figures tell you about how risky your business is? g. If sales could increase by 1,560 shirts (ie, a 20% increase), by ho w much in dollars would net operating income increase? By what percentage would net operating income increase h. Prepare a contribution format income statement assuming a sales increase shirts. Compare your new net opera mathematically that your answers to the two questions in Question 'g' are correct ting income with your answer in Question "b" and prove i. Ignore Questions "g" and-h". If the cost per plain t-shirt is expected to increase by 20% and sales (in number of T-shirts) are expected to be 5% less, how much is your projected ne operating income (or loss)? To Prepare Your Report: Submit all answers into the appropriate drop box within Blackboard by the assigned due date. Proper formatting of all formal financial statements is one element of grading. One example of a exemplary submission has been included for your review (the data and all calculations have bee removed so that only a shell remains, but the formatting is in contact) Phase Three: 1. Calculate the total amount of cash you will need to have before the launching day of business, in order to buy all necessary equipment and machines, to purchase all material supplies needed for the first three months' operations, and to pay your employees first months salaries. Assume that your parents have agreed to loan you this amount, interes The following is information regarding the cash payment needs for your variable cost