Final Report (30 points)

Revise your work as needed by checking the posted answer keys. Compile your findings into a report for your client, Mind Your Own Beeswax. Include in the report your recommendations on the following:

1. How many units of each product must MYOB sell in order to earn a weekly Target Income (profit) of $3,093 (part 2.4)

2. How many units of each product should MYOB make to maximize profit, assuming they are only able to buy 100 pounds of beeswax per month (part 3)

3. Which of the two investment options do you recommend (part 4.2) and why?

Include an appendix at the end of your report that includes all of your calculations.

Please help. I cant understand an assignment. Thank you.

Mind Your Own Beeswax Part 2.3 Mold Candle Jar Candle 5 0.25 0.25 0 20 0.8 0.8 Lip Balm 7 0.16 0.32 0.2 0.15 1 1 1 Sales Beeswax Coconut oil essential oil tube Jar mold wick CC Fees Variable costs CM CM96 0.15 0.01 0.2 0.86 4.14 82.8096 0.03 0.8 4.43 15.57 77.8596 0.28 1.11 5.89 84.1496 Fixed Costs Farmers Market Fees Gas Employee Marketing Total Fixed Costs $500 $30 $400 $101 $1,031 1 Product Mix CM BREAKEVEN Product Mold Candle Jar Candle Lip Balm Sales Price 15 5 20 TOTAL CU Sales Price 5 20 75 100 140 Variable Cost 0.86 4.43 CU Var Cost 12.9 22.15 22.2 CU CM 4.14 15.57 5.89 Check figure. CUCM/CM = product mix 62.1 15 77.85 5 5 117.8 20 257.75 7 1.11 315 TOTAL 57.25 TOTAL $1,031 257.75 4.00 1031 Fixed Costs CU CM Breakeven Composite Unit Breakeven Units Mold Candle Jar Candle Lip Balm 60.00 20.00 80.00 Fixed Costs Target Income Fixed Costs + Target Incom CU CM Target Income BE Units Target Income Units Mold Candle Jar Candle Lip Balm $1,031 3093 $4,124 257.75 16 240 80 320 part 3 Total Mold Jar Sales Price $ 5.00 $ Credit charges fee $ 0.20 $ Net Selling price $ 4.80 $ Variable Cost $ 0.86 $ CM $ 4.14 $ Lip 20.00 $ 0.80$ 19.20 $ 4.43 $ 15.57 $ 7.00 0.28 6.72 1.11 5.89 If 1 pound of wax can make 32 molding candles, 10 jar candles, and 50 lipsticks, then... Quantity of beeswax/unit 0.03125 CM of beeswax $ 132.48 $ 0.1 155.70 $ 0.02 294.50 Quantity to produce Products that bring in more income are lipstick (1st place) and jar candles (2nd place). But we only have 100 pounds of wax available. Thus, I will leave 2000 lipsticks in production and reduce the production of jar candles by 200 units, and I will temporarily remove mold candles from production 600 2000 Quantity of beeswax consumed 60 40 100 Maximum Income $ 9,342.00 $ 11,780.00 $21,122.00 Credit Apiary Description 0 Acquisiton of apiary 1 2 3 Part 4.2 Debit Apiary Description Inflow/Outflow Discounting 5% PV 0 Acquisiton of apiary $ (350,000.00) 1.000000 S (350,000.00) 1 $ 103,908.00 0.952381 $ 98,960.00 2 $ 103,908.00 0.907029 $ 94,247.57 3 $ 103,908.00 0.863838 $ 89,759.68 4 $ 103,908.00 0.822702 $ 85,485.32 5 Incremental Cash flow $ 103,908.00 0.783526 $ 81,414.62 6 from operation $ 103,908.00 0.746215 $ 77,537.71 7 $ 103,908.00 0.710681 $ 73,845.44 8 $ 103,908.00 0.676839 $ 70,328.99 9 $ 103,908.00 0.644609 $ 66,980.03 10 $ 103,908.00 0.613913 $ 63,790.47 TOTAL S 689,080.00 S 452,349.83 1 4 5 Incremental Cash flow 6 from operation 7 Inflow/Outflow Discounting 5% PV $ (500,000.00) 1.000000 $(500,000.00) $ 119,508.00 0.952381 $ 113,817.15 $ 119,508.00 0.907029 $ 108,397.22 $ 119,508.00 0.863838 $ 103,235.55 $ 119,508.00 0.822702 $ 98,319.47 $ 119,508.00 0.783526 $ 93,637.63 $ 119,508.00 0.746215 $ 89,178.66 $ 119,508.00 0.710681 $ 84,932.06 $ 119,508.00 0.676839 $ 80,887.68 $ 119,508.00 0.644609 $ 77,035.93 $ 119,508.00 0.613913 $ 73,367.51 S 695,080.00 $ 422,808.87 8 9 10 TOTAL Period Period Description Acquisiton of apiary Description Inflow/Outflow Balance Acquisiton of apiary $ (350,000.00) $ (350,000.00) $ 103,908.00 $ (246,092.00) Incremental Cash flow $ 103,908.00 $ (142,184.00) from operation $ 103,908.00 $ (38,276.00) $ 103,908.00 $ 65,632.00 0.00 1.00 2.00 3.00 3.37 Incremental Cash flow from operation Inflow/Outflow Balance $ (500,000.00 $ (500,000.00) $ 119,508.00 $ (380,492.00) $ $ 119,508.00 $ (260,984.00) $ 119,508.00 $ (141,476.00) $ 119,508.00 $ (21,968.00) $ 119,508.00 $ 97,540.00 0.00 1.00 2.00 3.00 4.00 4.18