Week 5Break Even AnalysisRecipe: 1 dozen pretzelsIngredientUnitsUnit costUsageCostFlourcup$0.15$0.00Sugarcup$0.15$0.00Yeastcup$0.50$0.00Oilhalf cup$1.00$0.00Eggcup$0.10$0.00Salthalf cup$0.75$0.00Othercup$2.00$0.00Variable direct material costs per dozen$0.00Variable overhead costs per dozenVariable operating costs per dozenTotal variable costs per dozen$0.00Mark-upSales price per dozen$0.00Contribution margin$0.00Monthly fixed costs:Manufacturing overheadOperating expenses$0Months31st quarter fixed costs$0Break even unitsBreak even sales Week 6aQuarterly sales projections:NameJanuaryFebruaryMarchAprilA-F3750375037503750Sales and Cash Collections BudgetG-L2750325040005000Quarter Ending March 31, 2011M-S2000350045005000T-Z1750375035006000JanuaryFebruaryMarchTotalSales:Unit sales in dozensSelling price per dozenTotal sales$0$0$0$0Total cash sales (40%)Total credit sales (60%)Cash collections:Current month cash salesCollection of credit salesTotal cash collections$0$0$0$0Quarter end receivablesDirect Material Purchasesand Cash Disbursements BudgetQuarter Ending March 31, 2011JanuaryFebruaryMarchTotalAprilFlour:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Sugar:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Dry yeast:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Oil:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Eggs:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Salt:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Other ingrediants:Unit production in dozensRaw material per dozenProduction needs0Add: Planned ending inventoryTotal needsLess: Beginning inventoryRaw materials to be purchasedCost per unit usedTotal cost of raw materials$0$0$0$0Total raw material purchasesLess quarter end inventoryUnitsUnit costTotalFlourSugarDry yeastOilEggsSaltOtherRaw materials inventory at March 31$0Cost of goods soldBudgeted cash disbursements:25% of current month's purchases75% of prior month's purchases$0$0$0$0Quarter end accounts payable Week 6bManufacturing Overhead BudgetQuarter Ending March .

1. Week 5Break Even AnalysisRecipe: 1 dozen
pretzelsIngredientUnitsUnit
costUsageCostFlourcup$0.15$0.00Sugarcup$0.15$0.00Yeastcup
$0.50$0.00Oilhalf cup$1.00$0.00Eggcup$0.10$0.00Salthalf
cup$0.75$0.00Othercup$2.00$0.00Variable direct material costs
per dozen$0.00Variable overhead costs per dozenVariable
operating costs per dozenTotal variable costs per
dozen$0.00Mark-upSales price per dozen$0.00Contribution
margin$0.00Monthly fixed costs:Manufacturing
overheadOperating expenses$0Months31st quarter fixed
costs$0Break even unitsBreak even sales
Week 6aQuarterly sales
projections:NameJanuaryFebruaryMarchAprilA-
F3750375037503750Sales and Cash Collections BudgetG-
L2750325040005000Quarter Ending March 31, 2011M-
S2000350045005000T-
Z1750375035006000JanuaryFebruaryMarchTotalSales:Unit
sales in dozensSelling price per dozenTotal sales$0$0$0$0Total
cash sales (40%)Total credit sales (60%)Cash
collections:Current month cash salesCollection of credit
salesTotal cash collections$0$0$0$0Quarter end
receivablesDirect Material Purchasesand Cash Disbursements
BudgetQuarter Ending March 31,
2011JanuaryFebruaryMarchTotalAprilFlour:Unit production in
dozensRaw material per dozenProduction needs0Add: Planned
ending inventoryTotal needsLess: Beginning inventoryRaw
materials to be purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Sugar:Unit production in dozensRaw material
per dozenProduction needs0Add: Planned ending inventoryTotal
needsLess: Beginning inventoryRaw materials to be
purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Dry yeast:Unit production in dozensRaw
material per dozenProduction needs0Add: Planned ending
inventoryTotal needsLess: Beginning inventoryRaw materials to

2. be purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Oil:Unit production in dozensRaw material
per dozenProduction needs0Add: Planned ending inventoryTotal
needsLess: Beginning inventoryRaw materials to be
purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Eggs:Unit production in dozensRaw material
per dozenProduction needs0Add: Planned ending inventoryTotal
needsLess: Beginning inventoryRaw materials to be
purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Salt:Unit production in dozensRaw material
per dozenProduction needs0Add: Planned ending inventoryTotal
needsLess: Beginning inventoryRaw materials to be
purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Other ingrediants:Unit production in
dozensRaw material per dozenProduction needs0Add: Planned
ending inventoryTotal needsLess: Beginning inventoryRaw
materials to be purchasedCost per unit usedTotal cost of raw
materials$0$0$0$0Total raw material purchasesLess quarter end
inventoryUnitsUnit costTotalFlourSugarDry
yeastOilEggsSaltOtherRaw materials inventory at March
31$0Cost of goods soldBudgeted cash disbursements:25% of
current month's purchases75% of prior month's
purchases$0$0$0$0Quarter end accounts payable
Week 6bManufacturing Overhead BudgetQuarter Ending March
31, 2011JanuaryFebruaryMarchTotalUnit production in
dozensVariable manufacturing overhead per dozenBudgeted
manufacturing overhead$0$0$0$0Budgeted fixed overheadTotal
budget$0$0$0$0Less: non-cash depreciationCash disbursements
for manufacturing overhead$0$0$0$0Operating Expense
BudgetQuarter Ending March 31,
2011JanuaryFebruaryMarchTotalUnit production in
dozensVariable operating expenses per dozenBudgeted variable
expense$0$0$0$0Budgeted fixed operating expensesTotal
budget$0$0$0$0Less: non-cash depreciationCash disbursements
for operating expenses$0$0$0$0Cash BudgetQuarter Ending
March 31, 2011JanuaryFebruaryMarchTotalReceipts:Cash,

3. beginning balanceCapital contributionsCollections from
customersTotal cash available$0$0$0$0Disbursements:Direct
materialsManufacturing overheadOperating expensesEquipment
purchasesTotal disbursements$0$0$0$0Excess (deficiency) of
cashBank loanDraws on line of creditRepaymentsInterest
paymentsCash, ending balance$0$0$0$0Interest expense (1%
per month on outstanding balance)Accrued interest at quarter
endProforma Variable Income StatementQuarter Ending March
31, 2011SalesVariable costs:Direct materialsManufacturing
overheadOperating expensesTotal variable costsContribution
marginFixed costs:Manufacturing overheadOperating
expensesInterest expenseTotal fixed costsOperating income
(loss)Income taxesNet income (loss)Proforma Absorption
Income StatementQuarter Ending March 31, 2011SalesCost of
goods sold:Direct materialsManufacturing overheadTotal cost of
goods soldGross marginOperating expensesInterest
expenseOperating income (loss)Income taxesNet income
(loss)Proforma Balance SheetMarch 31, 2011Current
assets:CashAccounts receivableRaw materials inventoryTotal
current assetsFixed assetsLess accumulated depreciationNet
fixed assetsTotal assetsCurrent liabilities:Accounts
payableAccrued interest payableBank loan and line of
creditTotal current liabilitiesOwner's equity:Capital
contributionRetained earningsTotal equityTotal liabilities and
equity
ACC 302 Final Project 1 01/30/12
ACC 302 Final Project

4. Project Orientation and Overview
Every year at the state fair your parents have run a pretzel
booth. Over the years you have experimented with new pretzel
recipes, and many have been successfully incorporated into the
selection of pretzels now offered each year at the state
fair.
Your parents are ready to retire and turn the business over
in your name. You want to capitalize on your parents’
success
and expand by offering pretzels at a store location. In order to
expand, you will need to secure a bank loan to cover
expansion costs and overhead. To consider your proposal, the
banker will want to see a business plan, specifically a
master budget.
Your task for this final project is to prepare and present all the
necessary documents so that you can ask for that loan.
This task is broken down into four parts:
the end of Week Five
the end of Week Six
Cover Letter, due at the
end of Week Seven
Eight
Part 1 – Mission Statement and Partial Business Plan, due Week

5. Five
o Chapter 18: The Changing Business Environment: A
Manager’s Perspective
o Chapter 19: Cost Concepts and Cost Allocation
o Chapter 23: Cost Behavior Analysis
information about your pretzel company, its mission,
and its featured product.
to calculate the costs of running your business and to
complete the short answer section of the Mission Statement
Template Handout.
o Calculate total variable costs per dozen pretzels.
o Calculate sales price per dozen pretzels using 120% markup
on variable costs.
o Calculate contribution margin per dozen pretzels.
o Calculate breakeven point for the quarter (three months) in
dollars and units.
the completed Mission Statement Template Handout
to “My Assignments” in My West.

6. ACC 302 Final Project 2 01/30/12
Exhibit 1:
Cost of Goods
If your pretzel recipe has ingredients that are not included here,
simply consider them part of your overhead expenses.
Direct Materials Unit Unit Cost
Flour (any kind) per cup $ 0.15
Sugar (any kind) per cup $ 0.15
Dry Yeast per cup $ 0.50
1 Stick of Butter, Shortening, Oil per 1/2 cup $ 1.00
Egg per cup $ 0.10
Salt per 1/2 cup $ 0.75
Specialty Ingredients (any kind, e.g., chocolate chips,
cinnamon,
cheese, pepperoni, etc.)
per cup $ 2.00
Direct Labor
Information regarding direct labor cost is not maintained
because your facility is highly automated. Direct labor is
included
as part of manufacturing overhead.
Manufacturing Overhead and Operating Expenses

7. Manufacturing Overhead Variable
(per dozen)
Fixed
(per month)
Utilities $ 0.50
Other Indirect Materials and Labor $ 0.75
Maintenance $ 500.00
Depreciation $ 2,000.00
Supervision $ 2,500.00
Totals $ 1.25 $ 5,000.00
Operating Expenses Variable
(per dozen)
Fixed
(per month)
Sales Commission $ 0.50
Shipping Costs $ 1.00
Salaries $ 5,000.00
Depreciation $ 200.00
Other $ 1,800.00
Totals $ 1.50 $ 7,000.00
ACC 302 Final Project 3 01/30/12
Part 2 – Budgets, Financial Statements, and Analysis, due Week

8. Six
next page to determine production and financial budget
data.
o Sales budget/cash collections budget
o Direct materials purchases budget/cash disbursements budget
o Manufacturing overhead budget
o Operating expenses budget
cash needs. More specifically, use the budgets and
other documentation that you have created for this project to
create the following documents:
o Proforma (projected) variable income statement
o Proforma absorption income statement
o Proforma balance sheet
o Cash budget
processing program:
o Discuss the importance of beginning the master budget

9. process with an accurate sales budget.
o What are some important factors that a manager should
consider when developing a sales budget? State why
each is important.
o Distinguish between operating expenses and disbursements for
operating expenses.
o What is the main difference between the variable and
absorption income statements?
o What are the major benefits of budgeting?
questions to “My Assignments” in My West.
ACC 302 Final Project 4 01/30/12
Exhibit 2:
Production Budget Information
It is a few months before your store is opening. You expect to
open the doors of your pretzel company as of January 1.
You are starting fresh with no raw materials, no accounts
receivable, and no accounts payable. You were able to secure
several contracts with local businesses (i.e., sales associates
that are paid on commission); based off these contracts,
you were able to make projects for the first four months of the
year.

10. -
in-process or finished goods inventory.
an to maintain a raw direct material inventory of 10%
of the next month production.
purchase and 75% in the following months.
Your monthly sales projections are based off your last name,
and sales are sold per dozen.
Collections on Sales
Cash sales collected in the current month: 40%
Credit sales are collected in the following month: 60%
Financial Budget Information
are looking to secure a bank loan for $50,000 with
additional line of credit. However, you must always have a
minimum cash end-of-month balance of $10,000.
month, you must repay your outstanding balance in
$1,000 increments.
-of-month cash balance falls below $10,000, you
must make additional borrowing from the line of credit.
These borrowings are also in increments of $1,000.

11. annual interest rate
of 12% which is paid monthly on the total outstanding
borrowings at the end of the prior month.
Additional Information:
at a
rate of 25%.
A-F G-L M-S T-Z
January 3750 2750 2000 1750
February 3750 3250 3500 3750
March 3750 4000 4500 3500
April 3750 5000 5000 6000
ACC 302 Final Project 5 01/30/12
Part 3 – Complete Business Plan and Cover Letter, due Week
Seven
should approve your loan.
supporting documentation created for this project.
your complete business plan as one document to
“My Assignments” via My West.

12. Part 4 – Business Plan Presentation, due in-class, Week Eight
–15 slide Microsoft® PowerPoint® presentation of
your business plan. The slides will be evaluated for:
o Content
o Relevance
o Layout
o Readability
Adobe® Acrobat® ConnectTM during the online class
meeting. Your presentation must be 10–15 minutes long
(including Q & A) and will be evaluated on:
o Delivery of the content
o Answers to follow-up questions from the class and instructor
For online students: If you are to be absent from class, your
slides must include detailed speaker notes containing the
content that would have been delivered in the live session.
Note to instructor: Time devoted to final presentations may
need to be adjusted to account for large class sizes. These
adjustments are at the discretion of the instructor.
*Note this assignment only focuses on a mission statement and

13. the financial portion of a business plan.
Water BillSample Amount Now Due123 Fake StreetSample
Ville, 123548Your Account Number0125867-65Service
Address:Meter Read:Water Customer ClassCommercialAccount
Summary:Opening BalanceWater Usage HistoryPayments
Received-Thank youBalance Carried ForwardNew ChargesTotal
Electricity Charges Incl DiscountsTotal Amount DuePlease Pay
by 02/xx/201x to avoid delinquencyAll bill inquiries and
start/stop services To make payment arrangement on past due
billsFor missed pick-up of solid waste1-866-532-2111
Electric BillSample 123 Fake StreetCustomer Service 1-866-
324-1484Sample Ville, 123548Online
Payments:www.fake.comService Address:Account No: 300 201
563Meter Read:Total Amount Due:Account Summary:Due
Date:Opening BalancePayments Received-Thank youBalance
Carried ForwardNew ChargesTotal Electricity Charges Incl
DiscountsTotal Amount DueYour Monthly Average
ComparisonImportant Information:Ways to Save:
Invoice Logo of CompanyCompany AddressCompany
PhoneCompany EmailCompany WebsiteInvoice
Number:Customer Name:Customer Address:Customer
Phone:Customer: EmailCustomer ID NumberDescriptionPrice
per UnitQuantityTotal PriceDiscounts/CreditsPayments
AppliedAmount OutstandingSignature:There should also be an
invoice for the internet purchases as well.
Purchase OrderCustomer IDCustomer InformationPurchase
OrderDescription of ItemQuanityUnit PriceTotal Price

14. Checks3000Company Name3000Pay to:AddressCity, State and
ZipAmount:PAY TO THE ORDER OF$Memo:DOLLARSName
of the BankBank AddressFor:I:000"258I:0458
01"78"54833001Company Name3001AddressPay to:City, State
and ZipPAY TO THE ORDER
OF$Amount:DOLLARSMemo:Name of the BankBank
AddressFor:I:000"258I:0458 01"78"54833002Company
Name3002AddressPay to:City, State and ZipPAY TO THE
ORDER OF$Amount:DOLLARSMemo:Name of the BankBank
AddressFor:I:000"258I:0458 01"78"5483
Bank StatementName of the bankAccount NumberStatement
PeriodBeginning BalanceDepositsChecksWithdrawalsEnding
BalanceDeposit SummaryCheck Summary