Q9 Video role play task You are the bookkeeper for Brad's Vegan Ice Creamery The business has had a bumper year in terms of sales volumes, but there are concerns about the fall in profits Bradley Stanton, the owner of Brad's Vegan Ice Creamery, has called a meeting with you (the bookkeeper) and the Melinda (sales manager) to discuss the results of operations for the year In your meeting, you'll discuss The information below Milestones and performance indicators The variances in the budget, and what they mean Brad and Melinda's views and opinions on the budget information Plans to manage the budget for the coming year Sales volumes Budget 750,000 litres Actual 795,000 litres Profit Loss Budget ($000) Actual ($000) Variance ($000) Sales $12,000 $14,310 $ 2,310 Favourable Less Cost of goods sold $ 6,750 $ 8,586 $ 1,836 Unfavourable Gross profit $ 5,250 $ 5,724 $ 474 Favourable Less operating expenses Wages commission $ 1,800 $ 1,940 $ 140 Unfavourable Rent $ 800 $ 800 $ 0 Advertising $ 650 $ 890 $ 240 Unfavourable Insurance $ 240 $ 240 $ 0 Other $ 100 $ 230 $ 130 Unfavourable Total expenses $ 3,590 $ 4,100 $ 510 Unfavourable Net Profit $ 1,660 $ 1,624 $ 36 Unfavourable General instructions Students must perform with at least 1 other person Using just 1 other person to play multiple roles is completely OK Alternatively, you can use as many other persons as there are roles The other person(s) can play multiple roles except for the role required to be played by the student There is no requirement for the other person(s) to be visible in the video, so if your partner(s) would prefer not to be visible, that's OK The student must be visible throughout the video All persons must be audible throughout the recording Using a camera phone is often a quick and easy way to record the video Instructions You will need at least one partner for this exercise, to read play the parts of the other stakeholders Give them the role play script titled 'Budget meeting' You only need one partner they can read all the parts other than yours Note You will need a calculator to perform some basic calculations before performing this role play Read the script to determine what you'll need to calculate and prepare yourself and the figures before you begin the role play Video record your meeting with Brad and Melinda at Brad's Vegan Ice Creamery Follow the video recording process you've used before (also on the LMS) Upload the meeting video recording when you upload this written assignment document Please name your roleplay file with your surname followed by mod 4 2 For example, Smith Mod 4 2 Criteria For this task, you're being assessed on your ability to Student makes an effort to build rapport with colleagues Student discusses budget variance with the owner Student clarifies budget results Student engages with the owner regarding costs Student elicits owner and sales managers' opinions on budget targets ideas Student answers question about reduced COGS impact on profit projection Q9 Video role play task Brad's Vegan Ice Creamery Budget meeting Role Play Script Notes This role play hasthree different roles, including the student bookkeeper You bookkeeper Brad owner Melinda sales manager Instructions Remember what you're being assessed on your operational budget skills and your communication skills, as outlined in the instructions for Q9 If you only have one partner, they read play all the roles except yours You'll need to have the answers to previous questions ready to guide you in this discussion The parts are indicated with names in brackets, like this YOU BRAD When something is written in bold, it's just a guide not a line you have to read word for word There's often no script for what you say just guidelines That's part of the challenge Don't read these lines out Instead, answer in a way that fulfils the guidelines For example, if the guideline for you were YOU Name and describe a fruit Say something good and something bad about the fruit you might say Apples They're red, juicy, and crunchy They're high in fibre, but you can't eat the core Normal speech is written as follows Read these parts out MARY Let's get this meeting started Instructions for actions or body language are written in italics as follows Don't read these parts out FRED Look angry and raise your hand BRAD Thanks for coming to this meeting First things first good work, everyone It looks as if our sales this past year exceeded the budget We were expecting to sell 750,000 litres of ice cream, like last year, but it turns out we sold 795,000 litres Credit goes to our sales staff for their hard work YOU Say something nice to Melinda about her sales result MELINDA Smiling MELINDA Thanks Our full range is now in more stores than ever before BRAD I'm pretty happy about the sales volume There's just one thing I am concerned about our costs Despite increased sales, actual net profit is down compared to the budgeted net profit figure MELINDA Oh, that's disappointing Can you tell us the profit figures YOU Confirm the Actual and Budgeted Net Profit and variance figures to Melinda and Brad BRAD Given sales have increased, what could explain the fall in net profit YOU Tell Brad and Melinda why you think profits are down Refer to the numbers in the budget information and highlight the unfavourable cost expense variances, especially mention the largest unfavourable cost variance BRAD OK, thanks for that I know the volume of sales has increased, but has the per litre selling price changed MELINDA Yes, good news The selling price per litre actually increased slightly compared to budget BRAD Turns to bookkeeper BRAD Can you tell us exactly how much was the actual and budget price per litre YOU Tell Brad and Melinda the dollars per litre actual price per litre and budgeted price per litre (TIP you'll need to calculate this using Sales dollar amount divided by Sales volume for Actual and then for Budget You can do this before commencing the role play) BRAD That's awesome So it seems costs are where we should focus our attention BRAD Turns to bookkeeper BRAD So what can we do to control these costs YOU Talk Brad and Melinda about one of your ideas for controlling costs For example, you'll try to reduce Cost of Goods Sold by 10 while maintaining the same sales volume BRAD Sounds good Just based on that idea alone, how much of an increase in profit do you think we can make over the next year, assuming all other sales and expense amounts remain constant YOU Explain how your idea would have an impact on profits Suggest some budget process and review milestones to implement your idea For example, you'll target reducing COGS by a small percentage each quarter to achieve a total 10 reduction for the year You'll plan to do the calculations and review each month to make sure you are on track to hit your quarterly milestone targets Ask Brad and Melinda what they think of the idea BRAD Great, sounds like a good idea MELINDA Yeah, that's definitely worth trying BRAD OK, thanks everyone, that'll do for now Let's get to work

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Q9. Video role play task You are the bookkeeper for Brad's Vegan Ice Creamery. The business has had a bumper year in terms of sales

Q9.

Video role play task

You are the bookkeeper for Brad's Vegan Ice Creamery. The business has had a bumper year in terms of sales volumes, but there are concerns about the fall in profits. Bradley Stanton, the owner of Brad's Vegan Ice Creamery, has called a meeting with you (the bookkeeper) and the Melinda (sales manager) to discuss the results of operations for the year.

In your meeting, you'll discuss:

The information below
Milestones and performance indicators
The variances in the budget, and what they mean
Brad and Melinda's views and opinions on the budget information
Plans to manage the budget for the coming year

Sales volumes: Budget 750,000 litres; Actual 795,000 litres

Profit & Loss	Budget ($000)	Actual ($000)	Variance ($000)
Sales	$12,000	$14,310	$ 2,310 Favourable
Less Cost of goods sold	$ 6,750	$ 8,586	$ 1,836 Unfavourable
Gross profit	$ 5,250	$ 5,724	$ 474 Favourable
Less operating expenses:
Wages & commission	$ 1,800	$ 1,940	$ 140 Unfavourable
Rent	$ 800	$ 800	$ 0
Advertising	$ 650	$ 890	$ 240 Unfavourable
Insurance	$ 240	$ 240	$ 0
Other	$ 100	$ 230	$ 130 Unfavourable
Total expenses	$ 3,590	$ 4,100	$ 510 Unfavourable
Net Profit	$ 1,660	$ 1,624	$ 36 Unfavourable

General instructions:

Students must perform with at least 1 other person. Using just 1 other person to play multiple roles is completely OK. Alternatively, you can use as many other persons as there are roles.

The other person(s) can play multiple roles except for the role required to be played by the student.

There is no requirement for the other person(s) to be visible in the video, so if your partner(s) would prefer not to be visible, that's OK.

The student must be visible throughout the video.

All persons must be audible throughout the recording.

Using a camera phone is often a quick and easy way to record the video.

Instructions

You will need at least one partner for this exercise, to read/play the parts of the other stakeholders. Give them the role play script titled 'Budget meeting'. You only need one partner; they can read all the parts other than yours.

Note: You will need a calculator to perform some basic calculations before performing this role play. Read the script to determine what you'll need to calculate and prepare yourself and the figures before you begin the role play.

Video record your meeting with Brad and Melinda at Brad's Vegan Ice Creamery. Follow the video recording process you've used before (also on the LMS).

Upload the meeting video recording when you upload this written assignment document.

Please name your roleplay file with your surname followed by mod 4.2. For example, Smith Mod 4.2

Criteria

For this task, you're being assessed on your ability to:

Student makes an effort to build rapport with colleagues
Student discusses budget variance with the owner
Student clarifies budget results
Student engages with the owner regarding costs
Student elicits owner and sales managers' opinions on budget targets/ideas
Student answers question about reduced COGS impact on profit projection

Q9 Video role play task

Brad's Vegan Ice Creamery

Budget meeting

Role Play Script

Notes:

This role play hasthree different roles, including the student/bookkeeper. You: bookkeeper
Brad: owner
Melinda: sales manager

Instructions:

Remember what you're being assessed on: your operational budget skills and your communication skills, as outlined in the instructions for Q9.

If you only have one partner, they read/play all the roles except yours.

You'll need to have the answers to previous questions ready to guide you in this discussion.
The parts are indicated with names in brackets, like this: [YOU] [BRAD]
When something is written in bold, it's just a guide - not a line you have to read word-for-word.

There's often no script for what you say; just guidelines. That's part of the challenge! Don't read these lines out. Instead, answer in a way that fulfils the guidelines. For example, if the guideline for you were:

[YOU]: Name and describe a fruit. Say something good and something bad about the fruit.

...you might say "Apples. They're red, juicy, and crunchy. They're high in fibre, but you can't eat the core."

Normal speech is written as follows. Read these parts out. [MARY]: Let's get this meeting started.

Instructions for actions or body language are written in italics as follows. Don't read these parts out. [FRED]: Look angry and raise your hand.

- - - - - - -

[BRAD]: Thanks for coming to this meeting.

First things first: good work, everyone! It looks as if our sales this past year exceeded the budget.

We were expecting to sell 750,000 litres of ice cream, like last year, but it turns out we sold 795,000 litres.

Credit goes to our sales staff for their hard work!

[YOU]: Say something nice to Melinda about her sales result.

[MELINDA]: Smiling

[MELINDA]: Thanks! Our full range is now in more stores than ever before.

[BRAD]: I'm pretty happy about the sales volume. There's just one thing I am concerned about: our costs.

Despite increased sales, actual net profit is down compared to the budgeted net profit figure.

[MELINDA]: Oh, that's disappointing. Can you tell us the profit figures?

[YOU]: Confirm the Actual and Budgeted Net Profit and variance figures to Melinda and Brad.

[BRAD]: Given sales have increased, what could explain the fall in net profit?

[YOU]: Tell Brad and Melinda why you think profits are down. Refer to the numbers in the budget information and highlight the unfavourable cost/expense variances, especially mention the largest unfavourable cost variance.

[BRAD]: OK, thanks for that. I know the volume of sales has increased, but has the per litre selling price changed?

[MELINDA]: Yes, good news! The selling price per litre actually increased slightly compared to budget.

[BRAD]: Turns to bookkeeper

[BRAD]: Can you tell us exactly how much was the actual and budget price per litre?

[YOU]: Tell Brad and Melinda the dollars per litre actual price per litre and budgeted price per litre (TIP: you'll need to calculate this using Sales dollar amount divided by Sales volume for Actual and then for Budget. You can do this before commencing the role play).

[BRAD]: That's awesome! So it seems costs are where we should focus our attention.

[BRAD]: Turns to bookkeeper

[BRAD]: So what can we do to control these costs?

[YOU]: Talk Brad and Melinda about one of your ideas for controlling costs. For example, you'll try to reduce Cost of Goods Sold by 10% while maintaining the same sales volume.

[BRAD]: Sounds good!

Just based on that idea alone, how much of an increase in profit do you think we can make over the next year, assuming all other sales and expense amounts remain constant?

[YOU]: Explain how your idea would have an impact on profits. Suggest some budget process and review milestones to implement your idea. For example, you'll target reducing COGS by a small percentage each quarter to achieve a total 10% reduction for the year. You'll plan to do the calculations and review each month to make sure you are on track to hit your quarterly milestone targets. Ask Brad and Melinda what they think of the idea.

[BRAD]: Great, sounds like a good idea!

[MELINDA] Yeah, that's definitely worth trying.

[BRAD]: OK, thanks everyone, that'll do for now. Let's get to work!