This individual assignment is based on the Chester's Place case, which you can download from the Readings and Resources page under Outline on the course site.
The case includes managerial accounting topics that have been studied in the course with the objective of seeing how they relate to one another when examined in one scenario.
The assignment is to be submitted by the due date in the Course Schedule, as one excel workbook. As this is an individual assignment, your workbook may not be shared with other learners.Calculations must be completed independently and final responses based on individual evaluation of the case. We encourage you to use the Individual Assignment Q&A forum on the course site for questions, so that the responses are available to everyone, however, please avoid using actual numbers in your questions or responses.Please note the formatting requirements found at the end of these instructions.
Required:
Assuming the role of yourself as an outside consultant, complete the following:
1. Prepare an analysis of Chester'sPlace's current situation:
a) Outlinethe goals of the partners
b) Describe the key success factors of the restaurant chain itself
c) Provide a business size up by
i. Assessing the external environment (opportunities, threats and competition),based on the case information provided.
ii. Analyzing the internal environment (strengths and weaknesses)
2. Analyze the potential opening of the patio from a qualitative standpoint. Include a discussion of the pros and cons of the patio and discuss the implications of each.
3. Identify all the potential cash flows associated with opening the patio and break them down indicating whether each one is fixed or variable and whether it is a recurring cost or a one-time cost. Create a three-column table to display this information using the following column headings: 1.Name of the cost 2.Fixed or Variable? 3.Recurringor one-time?
4. Perform a quantitative assessment using an incremental analysis for each of the best-case, expected case and worst-case scenarios, including the incremental cash inflows and outflows from operations for each scenario assuming that the patio is ready to open for 16 weeks a year.
Determine the return on investment and the payback period in years for each scenario based on your calculations.
5. Assuming that each customer generates an average sale of $25, how many additional customers would be needed to achieve payback within one year?
6. Based on your answers to the previous questions justify whether you would or would not recommend that the partners go ahead with opening the patio.
Download:- Ivey-ChestersPlace.pdf