Assignment
Scenario
At a recent get together, a longtime friend brought various types of cookies as a dessert. You had never tasted cookies of this high caliber before. Your friend never thought anything special of the cookies given she has been baking these since she was a small child. You shared that "Cookies from Home," a profitable company based in Tempe, Arizona, started by the encouragement of friends. Intrigued, your friend stated she would like to learn more. She would like some assistance in understanding how to start and operate a business of this nature. In exchange for a 2% ownership in the company, you agree to help her develop a business plan so that she can start her own business baking, marketing, and selling these cookies.
Instructions
Write the portion of the business plan for this company addressing the following:
A. Explain the process of determining the breakeven point for a business.
B. Estimate monthly fixed costs to establish this company including equipment, rent, insurance, and other fixed costs.
C. Estimate variable costs per batch of cookies, identifying all variable costs.
D. Given the estimated costs, calculate the breakeven point and identify required sales revenue to reach this point.
E. Based on the costs identified above, develop a realistic proforma income statement of a profitable business venture which would pay your friend a salary of $ 50,000 per year.
Task
• Explanation of breakeven points and calculation
• Accurately estimate fixed costs
• Identify all variable costs per batch of cookies
• Accurately calculate breakeven and identify required sales to make breakeven point
• Precise and accurate pro forma statement with accurate projection
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.