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Please see attached and do the financial analysis problem Objective The objective of this project is to offer you the opportunity to apply the concepts
Please see attached and do the financial analysis problem
Objective The objective of this project is to offer you the opportunity to apply the concepts that you have learned in your managerial accounting class. You will select a simple product/service and develop a brief feasibility analysis. The analysis at a minimum will include a costing analysis (ch 2-4), daily/weekly/monthly budgets for 1 year (ch 9-11), a break-even analysis (ch 5-6), and a ROI and Net Present Value calculation (ch 14). The Scenario You just inherited some money, $100,000 to be exact. Your great-great grandma willed this money to you, under one condition - in her lifetime she was a very successful entrepreneur - that you may only use the money to start your own small business. Also, the only money you can keep is the net profit you make from your venture. In other words you may not keep any of the initial $100,000 she willed to you. Rather, after a maximum of 3-5 years, you must donate the $100,000 to a charity of your choice. Financial Analysis Project Title Page (cover sheet) and Table of Contents [5 points] Executive Summary (1 page summarizing your findings and highlights) [10 points] General Information [20 Points] Industry/Market Information (description) Customer Information (description of your target customer population) Competitor Information (description of your current and potential competitors) Product/Service Information (description of your service/product) Technical Analysis [50 Points] Cost Analysis (variable and fixed costs, per unit cost, based on your estimated production per month or year). Budgets (monthly budget for 1 year, then 2-4 yearly budgets) Break-Even Analysis (per ch 6) Financial Analysis (ROI/NPV) for 1-3 years (budgeted income statement and/or balance sheet) (per ch 14) Conclusion and Self-Reflection (1/2 to 1 pg, your thoughts on completing this project) [15 Points] Appendices/Exhibits 1: Starting Your Own \"Taco Stand\" Objective The objective of this project is to offer you the opportunity to apply the concepts that you have learned in your managerial accounting class. You will select a simple product/service and develop a brief feasibility analysis. The analysis at a minimum will include a costing analysis (ch 2-4), daily/weekly/monthly budgets for 1 year (ch 9-11), a break-even analysis (ch 5-6), and a ROI and Net Present Value calculation (ch 14). The Scenario You just inherited some money, $100,000 to be exact. Your great-great grandma willed this money to you, under one condition - in her lifetime she was a very successful entrepreneur - that you may only use the money to start your own small business. Also, the only money you can keep is the net profit you make from your venture. In other words you may not keep any of the initial $100,000 she willed to you. Rather, after a maximum of 3-5 years, you must donate the $100,000 to a charity of your choice. Financial Analysis Project Title Page (cover sheet) and Table of Contents [5 points] Executive Summary (1 page summarizing your findings and highlights) [10 points] General Information [20 Points] Industry/Market Information (description) Customer Information (description of your target customer population) Competitor Information (description of your current and potential competitors) Product/Service Information (description of your service/product) Technical Analysis [50 Points] Cost Analysis (variable and fixed costs, per unit cost, based on your estimated production per month or year). Budgets (monthly budget for 1 year, then 2-4 yearly budgets) Break-Even Analysis (per ch 6) Financial Analysis (ROI/NPV) for 1-3 years (budgeted income statement and/or balance sheet) (per ch 14) Conclusion and Self-Reflection (1/2 to 1 pg, your thoughts on completing this project) [15 Points] Appendices/Exhibits \fITEM UNIT PRICE NUMBER OF TACOS BEEF $3 PER LB 12 CHEESE 2.50 PER LB 20 CORN TORTILLA $1 PER HEAD 25 TOMATO $.50 EACH 5 MARIO'S SECRET SAUCE $.10 PER TACO 1 TACO WRAPPER $30/1000 1000 VARIABLE COST PER TACO COST PER TACO $0.25 $0.21 $0.04 $0.10 $0.10 $0.03 $0.73 ITEM COST PER TACO $0.21 $0.21 $0.04 $0.10 $0.10 $0.03 $0.69 ITEM COST PER TACO $0.42 $0.21 $0.04 $0.10 $0.10 $0.03 $0.90 UNIT PRICE NUMBER OF TACOS CHICKEN $2.50 PER LB 12 CHEESE 2.50 PER LB 20 CORN TORTILLA $1 PER HEAD 25 TOMATO $.50 EACH 5 MARIO'S SECRET SAUCE $.10 PER TACO 1 TACO WRAPPER $30/1000 1000 VARIABLE COST PER TACO UNIT PRICE NUMBER OF TACOS FISH $5 PER LB 12 CHEESE 2.50 PER LB 20 CORN TORTILLA $1 PER HEAD 25 TOMATO $.50 EACH 5 MARIO'S SECRET SAUCE $.10 PER TACO 1 TACO WRAPPER $30/1000 1000 VARIABLE COST PER TACO FIXED EXPENSES RENT UTILITIES INSURANCE RENTERS' INSURANCE LAND LINE WIFI EMPLOYEES $10/HOUR PER 12 HOURS ADS ON FACEBOOK/GOOGLE TOTAL FIXED EXPENSES COST $1,000 $350 $200 $25 $30 $75 $3,600 $300 $5,580Step by Step Solution
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