Question: Individual

Individual Assignment $8\%$

Project is to be completed individually or in pairs $($no more than $2$ people$).$

Assessment is out of $100$ points.

You are managing a startup who produces cupcakes for the farmers market. Details about your operations are below:

Recipe

Expenses

Year End Information

Submit a report $($can be an excel spreadsheet$)$ that contains the following:

Identify the value added for the company $(2)$

Use the recipe for cupcakes to create a process flow diagram for cupcake production $(8)$

Based on the data provided, calculate labor productivity $($show your work$)$:

If a batch of $24$ takes $1$ hour to make and $1$ hour to sell? $(2)$

If $4$ batches can be made in an hour $($fit $4$ muffin pans in the oven at once$)$ and sold in $2$ hours? $(2)$

Perform calculation in terms of $ of output per $ of input $(1)$

Perform calculations in terms of units per labor hour $(1)$

Based on the data provided, calculate material productivity in terms of $ of output per $ of input $($show your work$)$:

If a batch of $24$ takes $1$ hour to make and $1$ hour to sell? $(2)$

If $4$ batches can be made in $90$ minutes $($fit $4$ muffin pans in the oven at once, still takes time to decorate them all$)$ and sold in $2$ hours? $(2)$

Based on the data provided, calculate total productivity in terms of $ of output per $ of input $($show your work$)$:

If a batch of $24$ takes $1$ hour to make and $1$ hour to sell? $(2)$

If $4$ batches can be made in $90$ minutes $($fit $4$ muffin pans in the oven at once, still takes time to decorate them all$)$ and sold in $2$ hours? $(2)$

What impacts the productivity of cupcake production? How can productivity be improved? $(3)$

Using the data provided and assuming the production of $24$ cupcakes using $1$ hour to make and $1$ hour to sell, calculate $($show work, explain where numbers come from$)$:

Cost of goods sold $(1)$

COGS$\%(1)$

Gross profit $(1)$

Gross profit margin $(1)$

How does COGS$\%$ compare to the benchmark for the restaurant industry from the class slides? $(1)$

Create an income statement determining all of the lines from sales revenue to net profit after taxes. Assume for the farmer$$s market season that total sales equal $720.$ Cupcakes are made $4$ batches at a time $($each batch is $24$ cupcakes, $4$ batches takes $90$ minutes$)$ and that you are at the farmer$$s market booth for $3$ hours for each of the $20$ days in the season. Your profits are taxed at $10\mathrm{.}5\%.(10)$

Using the data provided, calculate the financial ratios $($show work, explain where numbers come from$)$:

Net profit to owners equity $(2)$

Net profit to net sales $(2)$

Net sales to fixed asset $(2)$

Net sales to owner$$s equity $(2)$

Current ratio $(2)$

Acid test $(2)$

Receivables to working capital $(2)$

Inventory to working capital $(2)$

Net sales to inventory $(2)$

Inventory turnover ratio $(2)$

Net sales to working capital $(2)$

Long term liabilities to working capital $(2)$

Debt to owners equity $(2)$

Current liabilities to owners equity $(2)$

Fixed assets to owners equity $(2)$

Compare calculations to benchmarks $($use the food industry data from class slides, pick at least $3$ ratios to compare$)(6)$

According to the financial ratios:

Are profits satisfactory? How do you know? $(2)$

Are assets productive? How do you know? $(2)$

Can the business pay its debts? How do you know? $(2)$

How good are the business$$s assets? How do you know? $(2)$

Is the equity in the business satisfactory? How do you know? $(2)$

How would you assess the overall performance of the organization? Poor? Fair? Good? Why? $(2)$

Create a balanced scorecard with $3$ KPIs for the organization. Provide rationale for focusing on these $3$ KPIs. $(10)$