Valandre Corporation operates on a calendar-year basis, producing cloths for mountain-expedition purposes. The company sell and...

 

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Valandre Corporation operates on a calendar-year basis, producing cloths for mountain-expedition purposes. The company sell and produces three lines of cloth and equipment Sleeping bags, Jackets and accessories. In the past, the company have done very little in the way of budgeting and activity planning. The company consists of a CEO, a Sales & Marketing department with 4 employees, a production department with 15 employees, and a development department with 3 employees. The Sales & Marketing department are expecting the following sales for the coming year for each of the three product lines: Expected sales pr. product pr. month in pcs.: Sleeping bags Jackest Assosories Sleeping bags Jackets January February March April 900 550 150 Sales & Expenses Development expenses Other Fixed costs 800 400 150 • • 1000 1500 600 750 150 150 . May 300 200 Where the expected sales and cost prices pr. Pcs. for each of the product lines are: Cost price Sales price in EUR: in EUR: 100 June July 1500 900 150 75 2000 800 150 August September October 1000 600 150 800 500 150 Accessories 50 20 The cost prices for each product line are expected to be: 70 pct. Wages and 30 pct. Materials. The fixed costs pr. Month (in EUR) is expected to be: 900 400 150 You have just been hired as new management trainee. Since you are well trained in budgeting, you have been asked to: 700 300 150 June August January February March April May September October November December 100.000 75.000 100.000 75.000 100.000 75.000 50.000 20.000 200.000 200.000 200,000 50.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 November December 1000 450 150 Prepare a proposal to the CEO on how the budgeting process in Valandre could be for the coming year in order to secure contribution, internal coordination and involvement of the different departments. Make a first draft budget for the coming year based on the figures above. Make a Cost Volume Profit analyse on the budget with explanations to the CEO which can be communicated to Board of management and later on the employees. Make a suggestion to Performance measurements, and how to cascade the objectives in the organization. 800 500 150 Valandre Corporation operates on a calendar-year basis, producing cloths for mountain-expedition purposes. The company sell and produces three lines of cloth and equipment Sleeping bags, Jackets and accessories. In the past, the company have done very little in the way of budgeting and activity planning. The company consists of a CEO, a Sales & Marketing department with 4 employees, a production department with 15 employees, and a development department with 3 employees. The Sales & Marketing department are expecting the following sales for the coming year for each of the three product lines: Expected sales pr. product pr. month in pcs.: Sleeping bags Jackest Assosories Sleeping bags Jackets January February March April 900 550 150 Sales & Expenses Development expenses Other Fixed costs 800 400 150 • • 1000 1500 600 750 150 150 . May 300 200 Where the expected sales and cost prices pr. Pcs. for each of the product lines are: Cost price Sales price in EUR: in EUR: 100 June July 1500 900 150 75 2000 800 150 August September October 1000 600 150 800 500 150 Accessories 50 20 The cost prices for each product line are expected to be: 70 pct. Wages and 30 pct. Materials. The fixed costs pr. Month (in EUR) is expected to be: 900 400 150 You have just been hired as new management trainee. Since you are well trained in budgeting, you have been asked to: 700 300 150 June August January February March April May September October November December 100.000 75.000 100.000 75.000 100.000 75.000 50.000 20.000 200.000 200.000 200,000 50.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 25.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 200.000 November December 1000 450 150 Prepare a proposal to the CEO on how the budgeting process in Valandre could be for the coming year in order to secure contribution, internal coordination and involvement of the different departments. Make a first draft budget for the coming year based on the figures above. Make a Cost Volume Profit analyse on the budget with explanations to the CEO which can be communicated to Board of management and later on the employees. Make a suggestion to Performance measurements, and how to cascade the objectives in the organization. 800 500 150

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