managment accounting

An investment Cindy is contemplating the purchase of a refrigerated van in which she can travel and deliver to customers in remote areas. The original purchase price of the van (beginning of year 1 ) is expected to be $165000 and its expected useful life is 5 years. She expects the van to generate additional cash sales revenue in year 1 of $75000, with associated cash expenses of $25000. The additional sales revenue from and expenses of the van are projected to increase by 10 per cent each year. Ignore company income taxes. Cindy estimates the required rate of return to be 10%. Breaking even on a product Cindy will produce custom made birthday cakes with her assistant. She averages out the variable costs to be the following per cake: 1. Ingredients =$10 2. Decorations =$5 3. Labour =$20 She attributes fixed operational costs of $200 and marketing costs of $1000 per month to this product and thinks she could sell each cake for $50 dollars. Required a. How many cakes does she need to sell per month to break even? Round to the nearest whole number. b. If she makes 90 cakes what is the margin of safety in dollars? Further requirements c. Write an email to Cindy explaining your professional opinion on: 1. The non-financial benefits and costs that might be associated the purchase of the special van; and 2. Cindy can source the decorations for the cakes from a supplier overseas for $2.5 per cake. She does not know anything about this supplier except for the