This exercise will allow you to apply the concepts we learned about CVP analysis, short-term decision making, and budgeting to an actual business product. Snowie flavored shaved ice. (For additional information above Snowie, go to Assume that you are evaluating whether to purchase a Snowie franchise, which would allow you to operate a flavored shaved ice trailer at fairs, downtown areas, and other outdoor events. The (on wheels) you are considering leasing is the Snowie 10 Feet Building. The building a water system a hot water lighting, air conditioning, and other options. The building has wheel and a hitch on it so that it can be transported to locations. The wheels are can be removed once at the venue if desired. You can the building for $650 per month the lease is a 32 month lease. The flavored shaved ice, a "Snowie, " is normally offered in three users. For the purpose of this exercise. We are going to assume that only one size is offered - the large size, 20 The large Snowie sells for $4.00 specify your assumptions about the following items: Number of hours you will work wages required per day Number of hours you will pay an employee to work in the Snowie booth per day Number of days you anticipate the Snowie booth per month How many Snowies you estimate you will sell on an average day Calculate the break even point per month in units (number of Snowies sold) and sales dollars. Show your work. Assume now that you want to earn a target profit of $2,000 before for each month. How many Snowies must you sell to achieve that target profit? How compare your budgeted sales to the break even sales. What is your margin of safety per month in terms of units (number of Snowies sold), sales dollars, and percentage? Now assume that Main Street Kent, an organization that hosts outdoor events in downtown Kent approaches you about bringing your Snowie building to the in Kent for one day in October. Main Street Kent will provide the caps for the event that are branded with the Kent to you will not have any cup costs for the one event. Main Street Kent will also not be charging you a registration fee for this event. Main Street Kent will allow you to advertise your business in its mailings for two months at no cost and asks you to cut your Snowie price for that one event in in exchange for the free advertising you have no other event scheduled for the one day in October and you would work the event by yourself (you will not pay an employee for this one day event) You anticipate that you will sell 200 Snowie on this one day at Do you accept Main Street Kent's special price other? Why or Why not ? Support your answer. Prepare a contribution margin income statement budget for a month using the data given in the facts and your assumptions that you listed in Requirement 1. Provide a separate line for each variable cost for each fixed cost do not simply lump all of your costs together as one line containing variable costs.) This exercise will allow you to apply the concepts we learned about CVP analysis, short-term decision making, and budgeting to an actual business product. Snowie flavored shaved ice. (For additional information above Snowie, go to Assume that you are evaluating whether to purchase a Snowie franchise, which would allow you to operate a flavored shaved ice trailer at fairs, downtown areas, and other outdoor events. The (on wheels) you are considering leasing is the Snowie 10 Feet Building. The building a water system a hot water lighting, air conditioning, and other options. The building has wheel and a hitch on it so that it can be transported to locations. The wheels are can be removed once at the venue if desired. You can the building for $650 per month the lease is a 32 month lease. The flavored shaved ice, a "Snowie, " is normally offered in three users. For the purpose of this exercise. We are going to assume that only one size is offered - the large size, 20 The large Snowie sells for $4.00 specify your assumptions about the following items: Number of hours you will work wages required per day Number of hours you will pay an employee to work in the Snowie booth per day Number of days you anticipate the Snowie booth per month How many Snowies you estimate you will sell on an average day Calculate the break even point per month in units (number of Snowies sold) and sales dollars. Show your work. Assume now that you want to earn a target profit of $2,000 before for each month. How many Snowies must you sell to achieve that target profit? How compare your budgeted sales to the break even sales. What is your margin of safety per month in terms of units (number of Snowies sold), sales dollars, and percentage? Now assume that Main Street Kent, an organization that hosts outdoor events in downtown Kent approaches you about bringing your Snowie building to the in Kent for one day in October. Main Street Kent will provide the caps for the event that are branded with the Kent to you will not have any cup costs for the one event. Main Street Kent will also not be charging you a registration fee for this event. Main Street Kent will allow you to advertise your business in its mailings for two months at no cost and asks you to cut your Snowie price for that one event in in exchange for the free advertising you have no other event scheduled for the one day in October and you would work the event by yourself (you will not pay an employee for this one day event) You anticipate that you will sell 200 Snowie on this one day at Do you accept Main Street Kent's special price other? Why or Why not ? Support your answer. Prepare a contribution margin income statement budget for a month using the data given in the facts and your assumptions that you listed in Requirement 1. Provide a separate line for each variable cost for each fixed cost do not simply lump all of your costs together as one line containing variable costs.)