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April 20, 2024

Management Question

You only need to choose one of the following options to work on:

Option 2: Prepare a budget that is focused on ONE product idea

In this case, you are building a model because someone has asked you to help their son/daughter with pricing out a lemonade stand. The kid wants to sell lemonade to earn money for purchasing a bike that costs $150

Price out the cost of the lemonade and supplies, and calculate a profit margin that helps the kid to know how many lemonades have to be sold to buy the bike, or how many days it might take to earn the money.

You can put notes in the Excel budget to explain your thinking, or prepare a 2-3 page explanation of your approach that will be posted in conjunction with the Excel model

Option 3: You are starting a business building computers.

What are all of the costs you have to identify? How much do they cost?

Based on the overall costs, what would you have to sell it for in order to earn a gross profit margin of 50%?

MATERIAL:
Series-Part 1: How to Prepare an Operating Budget – Manufacturing (youtube.com)
Series-Part 2: How to Prepare a Budgeted Income Statement-Manufacturing (youtube.com)
Series-Part 3: How to Prepare a Cash Budget – Manufacturing (youtube.com)
How to Prepare an Operating Budget – Merchandising (youtube.com
How to Prepare a Flexible Budget (youtube.com)

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