Individual Assignment 8%

Project is to be completed individually or in pairs (no more than 2 people).

Assessment is out of 100 points.

You are managing a startup who produces cupcakes for the farmers market. Details about your operations are below:

• Recipe

• Expenses
• Year End Information

Submit a report (can be an excel spreadsheet) that contains the following:

1. Identify the value added for the company (2)
2. Use the recipe for cupcakes to create a process flow diagram for cupcake production (8)
3. Based on the data provided, calculate labor productivity (show your work):

1. If a batch of 24 takes 1 hour to make and 1 hour to sell? (2)
2. If 4 batches can be made in an hour (fit 4 muffin pans in the oven at once) and sold in 2 hours? (2)
3. Perform calculation in terms of $ of output per $ of input (1)
4. Perform calculations in terms of units per labor hour (1)

4. Based on the data provided, calculate material productivity in terms of $ of output per $ of input (show your work):

1. If a batch of 24 takes 1 hour to make and 1 hour to sell? (2)
2. If 4 batches can be made in 90 minutes (fit 4 muffin pans in the oven at once, still takes time to decorate them all) and sold in 2 hours? (2)

5. Based on the data provided, calculate total productivity in terms of $ of output per $ of input (show your work):

1. If a batch of 24 takes 1 hour to make and 1 hour to sell? (2)
2. If 4 batches can be made in 90 minutes (fit 4 muffin pans in the oven at once, still takes time to decorate them all) and sold in 2 hours? (2)

6. What impacts the productivity of cupcake production? How can productivity be improved? (3)
7. Using the data provided and assuming the production of 24 cupcakes using 1 hour to make and 1 hour to sell, calculate (show work, explain where numbers come from):

1. Cost of goods sold (1)
2. COGS% (1)
3. Gross profit (1)
4. Gross profit margin (1)

8. How does COGS% compare to the benchmark for the restaurant industry from the class slides? (1)

9. Create an income statement determining all of the lines from sales revenue to net profit after taxes. Assume for the farmers market season that total sales equal 720. Cupcakes are made 4 batches at a time (each batch is 24 cupcakes, 4 batches takes 90 minutes) and that you are at the farmers market booth for 3 hours for each of the 20 days in the season. Your profits are taxed at 10.5%. (10)
10. Using the data provided, calculate the financial ratios (show work, explain where numbers come from):

1. Net profit to owners equity (2)
2. Net profit to net sales (2)
3. Net sales to fixed asset (2)
4. Net sales to owners equity (2)
5. Current ratio (2)
6. Acid test (2)
7. Receivables to working capital (2)
8. Inventory to working capital (2)
9. Net sales to inventory (2)
10. Inventory turnover ratio (2)
11. Net sales to working capital (2)
12. Long term liabilities to working capital (2)
13. Debt to owners equity (2)
14. Current liabilities to owners equity (2)
15. Fixed assets to owners equity (2)

11. Compare calculations to benchmarks (use the food industry data from class slides, pick at least 3 ratios to compare) (6)
12. According to the financial ratios:

1. Are profits satisfactory? How do you know? (2)
2. Are assets productive? How do you know? (2)
3. Can the business pay its debts? How do you know? (2)
4. How good are the businesss assets? How do you know? (2)
5. Is the equity in the business satisfactory? How do you know? (2)
6. How would you assess the overall performance of the organization? Poor? Fair? Good? Why? (2)

13. Create a balanced scorecard with 3 KPIs for the organization. Provide rationale for focusing on these 3 KPIs. (10)

Submit project in Blackboard, the same place the project instructions were downloaded. Files should be uploaded or links (to Google Drive, One Drive, or iCloud Drive) can also be provided. Just make sure the instructor has viewing privileges if linking to cloud based documents.