PROJECT REQUIREMENTS:

Put yourself in Vicki Hoerning, the chief financial analyst's shoes, prepare a business memo addressed to Richard Lawson, CEO of Parson Foods Vegetable Company $($PFVC$).$ Your memo should:

Provide recommendations to Mr$.$ Lawson regarding whether to "hatch" Chicken Sensations? To support your recommendations, prepare an economic feasibility analysis that will guide PFVC$\text{'}$s decision on whether to launch Chicken Sensations.

Identify factors that could generate risk in introducing Chicken Sensations $($not limited to the ones already discussed in the case$).$ Discuss what actions could be taken to handle these foreseen risks?

Describe what responsibilities and compliances considerations are present and how do these responsibilities and compliances influence the decision to launch Chicken Sensations? Explain the necessity of implementing sensitivity analyses to address optimistic and pessimistic scenarios. Discuss how important is accurate management accounting analyses to a company's sustainability?

Discuss your overall recommendations for PFVC$\text{'}$s management regarding the use of CVP analysis to evaluate or control financial performance? Identify other avenues for increasing PFVC$\text{'}$s profitability. What suggestions could you provide to assist the company in improving its lagging financial performance?

Use your answers to the following questions to help you address the requirements above. Be sure to include a discussion on the following questions in your memo and provide supporting calculations. Use the Excel template provided to work on your calculations.

Perform an economic cost$-$benefit analysis of whether PFVC should launch Chicken Sensations. Clearly state your decision and conclusion from your analysis. $($You can use an Excel spreadsheet to complete these tasks in an organized, neat appendix to your analysis. The results of your appendix analyses can be referenced in the body of your memo to support your decision.$)$ To aid your analysis, perform the following tasks:

a$.$ Quantity, revenue, and cost conversions: Take Vicki's data from Table $1($Panel A data has been completed for you in Excel template $1.$a$.)$ and complete Panel B in Table $1.$

b$.$ Forecasted contribution margin income statement: Prepare a forecasted Chicken Sensations contribution margin format income statement for year $1$ based on the projected data gathered by Vicki.

c$.$ Breakeven analysis: Prepare a breakeven point analysis $($in cases and sales dollars$)$ for the year $1$ forecasts of Chicken Sensations.

d$.$ Margin of safety: Prepare a margin of safety analysis $($in cases and sales dollars$)$ for the year $1$ forecasts of Chicken Sensations.