QUESTION It is currently 4th December 2022. You receive the following email from: From: Sophia Grigg, Managing Director To: Finance Officer Subject: Various Issues Good morning, I was going to get in touch with Oleg Scragg, but as he's currently out on sick leave, Emily Queda suggested I could enlist your help. Firstly, there were some issues within the proposed budget. I recommend you have a look at this as soon as possible. I have a meeting with the Senior Management Team (SMT) later on today relating to various issues and would appreciate it if you could put together some briefing notes explaining: (1) Explain on the importance of Cost-Volume-Profit analysis. (2) Estimate the break-even point in unit and sales revenue for June 2022. (3) Assuming all costs are as budgeted, if the company desires to achieve gross profit of 70% for each type of athletic shoes, how many sales unit should we propose in the budget information (4) Based on new sales unit proposed in (3) above, analyse the new break-even point in unit and value for each type of products since there will be an increase of 5% on the raw materials as I have just received information from Georgia, Head of purchasing. (5) Describe THREE (3) major steps in the control phase of budgeting, Considering the increased pressure for TreadCushy to remain sustain and cost competitive in Keyland, I have been tasked by the board with undertaking an operational review. This is imperative to ensure that we improve our cost competitiveness while also meeting the demands of our customers. Could you explain on how we can advise Oleg Scragg. Production director for the production budget for June 2022 if Management desires an ending finished goods for each product to be 15% of the budgeted sales unit. Perhaps, you can prepare the production budget to assist me in advising him. I look forward to your report. Regards; Sophia QUESTION It is currently 4th December 2022. You receive the following email from: From: Sophia Grigg, Managing Director To: Finance Officer Subject: Various Issues Good morning, I was going to get in touch with Oleg Scragg, but as he's currently out on sick leave, Emily Queda suggested I could enlist your help. Firstly, there were some issues within the proposed budget. I recommend you have a look at this as soon as possible. I have a meeting with the Senior Management Team (SMT) later on today relating to various issues and would appreciate it if you could put together some briefing notes explaining: (1) Explain on the importance of Cost-Volume-Profit analysis. (2) Estimate the break-even point in unit and sales revenue for June 2022. (3) Assuming all costs are as budgeted, if the company desires to achieve gross profit of 70% for each type of athletic shoes, how many sales unit should we propose in the budget information (4) Based on new sales unit proposed in (3) above, analyse the new break-even point in unit and value for each type of products since there will be an increase of 5% on the raw materials as I have just received information from Georgia, Head of purchasing. (5) Describe THREE (3) major steps in the control phase of budgeting, Considering the increased pressure for TreadCushy to remain sustain and cost competitive in Keyland, I have been tasked by the board with undertaking an operational review. This is imperative to ensure that we improve our cost competitiveness while also meeting the demands of our customers. Could you explain on how we can advise Oleg Scragg. Production director for the production budget for June 2022 if Management desires an ending finished goods for each product to be 15% of the budgeted sales unit. Perhaps, you can prepare the production budget to assist me in advising him. I look forward to your report. Regards; Sophia
