Page 1 of 2 This case study involves concepts covered in chapters 4 and 5 of the course. Follow the instructions and complete the template schedule provided. Following the completion of the alculations, please provide a one to two paragraph summary memorandum to the Denise the business operator. Holiday Frames Denise is considering opening a holiday gift shop that will sell Holiday picture frames. Denise has come to you for advice on the financial aspects of purchasing and selling the picture frames. She expects the frames can be sold for $39 each. With every purchase, the customer will receive an engraving of their choice at no additional charge. Denise is outsourcing the engraving at a cost of $3 per engraving. Denise has found a great location near a high traffic area to set up her shop. The owner of the shop will lease the space for $800 a month. A business license will be needed and will cost $150. Shop setup will cost approximately $1,275. A supplier has been located that will provide frames at a cost of $13 each. Enhancements to the frames will add an additional cost of $1.25 each. Shop utilities will cost $600 per month. A business insurance policy will cost Denise $75 month. Advertising online and in the local newspaper will cost $75. Denise believes she can operate the shop on her own and therefore, will not need to hire any employees. C ZOOM +

This case study involves concepts covered in chapters 4 and 5 of the course. Follow the instructions and complete the template schedule provided. Following the completion of the talculations, please provide a one to two paragraph summary memorandum to the Denise the business operator. Denise is considering opening a holiday gift shop that wilt sell Holiday picture frames. Denise has come to you for advice on the financial aspects of purchasing and selling the picture frames. She expects the frames can be sold for $39 each. With every purchase, the customer will receive an engraving of their choice at no additional charge. Denise is outsourcing the engraving at a cost of $3 per engraving. Denise has found a great location near a high traffic area to set up her shop. The owner of the shop will lease the space for $800 a month. A business license will be needed and will cost $150. shop setup will cost approximately $1,275. A supplier has been located that will provide frames at a cost of $13 each. Enhancements to the frames will add an additional cost of $1.25 each. Shop utilitles will cost $600 per month. A business insurance policy will cost Denise $75 month. Advertising online and in the local newspaper will cost $75. Denise believes she can operate the shop on her own and therefore, will not need to hire any employees. A supplier has been located that will provide frames at a cost of $13 each. Enhancements to the frames witl add an additional cost of $1.25 each, Shop utilities will cost $600 per month, A business insurance policy will cost Denise $75 month. Advertising online and in the local newspaper will cost $75. Denise believes she can operate the shop on her own and therefore, will not need to hire any employees. She would like to understand how the numbers "work" and has asked you to prepare a one month profit and loss analysis illustrating revenue and costs under three scenarios; Sale of assingle frame, number of sales required to "breakeven, and sales required to generate $5,000 profit. Monthlu Profit and I noe crannetan Summary Memorandum - Draft a memorandum addressed to Denise fthe business operator). Explaining the items listed below as well as your anshels of the calculations made above. 1. Sales target impoct on protitability 2. Variabie cost 3. Contribution Marein 4. Fined costs 5. Break-even point This case study involves concepts covered in chapters 4 and 5 of the course. Follow the instructions and complete the template schedule provided. Following the completion of the talculations, please provide a one to two paragraph summary memorandum to the Denise the business operator. Denise is considering opening a holiday gift shop that wilt sell Holiday picture frames. Denise has come to you for advice on the financial aspects of purchasing and selling the picture frames. She expects the frames can be sold for $39 each. With every purchase, the customer will receive an engraving of their choice at no additional charge. Denise is outsourcing the engraving at a cost of $3 per engraving. Denise has found a great location near a high traffic area to set up her shop. The owner of the shop will lease the space for $800 a month. A business license will be needed and will cost $150. shop setup will cost approximately $1,275. A supplier has been located that will provide frames at a cost of $13 each. Enhancements to the frames will add an additional cost of $1.25 each. Shop utilitles will cost $600 per month. A business insurance policy will cost Denise $75 month. Advertising online and in the local newspaper will cost $75. Denise believes she can operate the shop on her own and therefore, will not need to hire any employees. A supplier has been located that will provide frames at a cost of $13 each. Enhancements to the frames witl add an additional cost of $1.25 each, Shop utilities will cost $600 per month, A business insurance policy will cost Denise $75 month. Advertising online and in the local newspaper will cost $75. Denise believes she can operate the shop on her own and therefore, will not need to hire any employees. She would like to understand how the numbers "work" and has asked you to prepare a one month profit and loss analysis illustrating revenue and costs under three scenarios; Sale of assingle frame, number of sales required to "breakeven, and sales required to generate $5,000 profit. Monthlu Profit and I noe crannetan Summary Memorandum - Draft a memorandum addressed to Denise fthe business operator). Explaining the items listed below as well as your anshels of the calculations made above. 1. Sales target impoct on protitability 2. Variabie cost 3. Contribution Marein 4. Fined costs 5. Break-even point