For ANALYSIS we have to answer these:

-know which expenses are variable, fixed

-direct material cost

-labor cost

-manufacturing overhead

-how many units the company needs to sell to break even and what the current margin of safety

-prepare a quarterly sales budget for 2024 to 2026

-Enzo is forecasting that the company will sell 200 bags during the winter month of 2024 as the company is quickly growing. What is the estimated budgeted total revenue per year for 2024, 2025 and 2026? He expects handbag demand to increase by 20% year as well.

-owner is considering opening physical retail stores. Maxwell wants your team to prepare an analysis of whether this is feasible for the company.

-Maxwell estimates rental costs of $2,000 per month, utilities of $300 per month, a

one-time investment in store design of $7,000 and recurring salary expenses of $5,000 per

month. He expects this change to increase sales revenue to 8 times its current levels and

reduce the seasonality of the sales. Operating online costs $8,000 per year in hosting and

requires $250 per month in order fulfillment employee wages. Maxwell wants your calculations on this in addition to any qualitative items that need to be considered in the decision.

-Prepare a return on investment calculation and determine the payback period for this capital investment.

-Enzo and Maxwell also want to know what steps they need to take to implement a budgeting process and why it is important to analyze budgets.

-What key variances should the compare to ensure the profitability and longevity of the company?