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Youhave recently accepted the position of assistant manager at Ice Cream Haven, a family owned ice cream shop in Nashua NH. You just finished your

Youhave recently accepted the position of assistant manager at Ice Cream Haven, a family owned ice cream shop in Nashua NH. You just finished your accounting courses. The owner of Ice Cream Haven, Mr. Bilbo Bagginsasks youto prepare a budgeted income statement for 2018 based on the information the owner has collected. Your budget income statement follows:

Ice Cream Haven

Budgeted Income Statement

For year ended June 30, 2018

Sales Revenue

$244,000

Cost of Good Sold

$177,000

Gross Profit

$67,000

Selling and Administrative Expenses

Sales & Commissions Expense

$46,000

Rent Expense

$8,000

Depreciation Expense

$2,000

Insurance Expense

$800

Miscellaneous Expense

$12,000

$68,800

Operating Loss

($1,800)

Interest Expense

($225)

Net Loss

($2,025)

You do not want to give the Owner, Mr. Baggins, this budget without making constructive suggestions for steps Mr. Solocould take to improve the ice cream shops performance.

Requirement:

Write a Memo to Mr. Bagginsoutlining your suggestions/recommendations. Use proper business communication format. Evaluate the information and make substantive suggestions for improvements, and provide supporting detail to your suggestions. The expected length is a one page memo. Please be sure to use proper APA format.

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