Question
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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