Case #2
Chef’s Toolkit - Case Anaylsis
Define the Issues Chef’s Toolkit has exhausted all of their financial resources trying to develop their product. The owner, Peter Jeffery, is seeking external investment to fund the launch of his product, and the potential investor, Dale Reid, has asked for projected financial statements for the company’s pessimistic, expected, and optimistic projected sales for the first year of operation ending July 30, 1995. Analyzing the Case Data Fragmented information was given in the case, along with a balance sheet and a production schedule for the expected sales of 10,000 units. There was no statement of cash flows, income statement or any information about their cash account or their accounts payable
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Also, according to break-even analysis operating with the single mold and excluding warehousing costs, a minimum of 12,035 units must be sold to break even. Under a similar situation with the double mold, 15,507 units must be sold to break even, which is about half of the optimistic sales projection. Also under the optimistic sales projection, a positive return on investment is expected. Because the company is turning profit,less additional investment is required. Additionally under the pessimistic and expected situation, the company turns losses, and under the optimistic projections, Chef’s Toolkit only has a net income of 13% of its revenues. Selecting Preferred alternative According to the above information and the projected pro-forma statements, Dale Reid should not invest his money in the company. The company’s lack of current assets, high expenses and low per-unit revenue create an unfortunate and unprofitable investment in pessimistic and expected situations. Only in the optimistic production and sales does the company begin to turn profit, but this profit is low. Chef’s Toolkit needs desperate restructuring and additional revenue sources before Dale Reid should invest. Developing
This paper will provide an analysis of 2 production scenarios. We will calculate costs associated with running a production facility. Furthermore, the analysis will be used to provide a basic understanding of how changes in staffing and productivity impact profit and loss.
If you compare bakery sales in July to bakery sales in September, it shows a 66% increase in sales in just two months. Peyton Approved uses its equity to finance the business than taking out loans. It has a .36% Debt to Equity ratio. The best ratio for the business is the profit margin. In three months the profit margin for Peyton Approved is 53.4%. The company just added a product line of hypoallergenic shampoos. It has been selling these products for one month and the company only turned the product over once during that month. At this time it does not look like adding these products to sales is
In this show there are four chefs to show a variety of everyday ingredients into a unprecedented three-course meal. In every episode, four chefs contend. The show is split into 3 sphericals; in every round, the chefs square measure given a basket containing between 3 and 5 unrelated ingredients, and also the dish every rival prepares should contain all of those ingredients. The competitors are given access to a storeroom and icebox, that is equipped a good type of different ingredients. every spherical is times, and also the chefs should cook their dishes and plate them before the time elapses.
Kudler is planning to have an annual revenue increase by 5% within 12 months breaking it down to four categories. A quarter percent gain is anticipated in the projects launch as well as the training of employees’. Profits will increase by a half of a percent during the assessment and alteration of the project with the promotion of the Frequent Shopper Program taking place at this time as well. In each phase of the development customer satisfaction will increase so will revenue, which will lead to an overall increase of 4.75% (Kudler Fine Foods. (2004). Apollo.).
All relevant costs located in worksheets #2, and #3 indicate that Shamrock manufacturing will benefit by replacing the machines at either equipment cost. However, worksheet #1 presents a problem for Mr. Fitzgerald as it shows a $6500 increase in the first year expenses, which are irrelevant in the long-run, but may encourage Mr. Fitzgerald not to purchase the new equipment because it may reflect badly on the short-run net operating income of his plant during the evaluation period for his promotion. Worksheet #3 offers a breakeven scenario in the first year and a $24,000 reduction in relevant cash flows in year two, which is the best option for Mr. Fitzgerald and Shamrock, if available.
Chef T-Lar pores the chili in the bowl, next is the alfredo sauce, then bacon bits, what will he put in next? My cultural heritage is focused a lot about food and the art of cooking. My culture also involves sports such as watching football and playing soccer.
Smackey Dog Foods, Inc. is a relatively young and rapidly growing company. With sales growth that is far outstripping their competitors and expanding operations, the company is in a vulnerable period. The majority of small businesses go bankrupt within the first five years of operation, and the course that the Company follows now has the potential to be either beneficial or disastrous. As management is basing their decision expand on projections developed by the sales teem, the accuracy
For over 12 years, Tossed has been creating fresh, unique, and flavorful salads, soups, artisanal sandwiches, sweet treats, and more for people just like you. Did you know that Tossed offers reliable catering services to people in various parts of the country? That’s right—if you live in Boca Raton, FL; Boston, MA; Los Angeles, CA; Morrisville, NC; or New York, NY, Tossed will cater delicious and healthy food right to your gathering.
Availability of products outside the boundaries of the same product increases the tendency of customers to switch to alternatives. In bakery industry, there are many products that can be used to replace each other. Therefore, the cost is relatively high conversion of buyers in the industry. CreaCakes overcomes these threats by offering special delivery to the customer, where the customer does not find any other substitute for our products, there is no substitute for meeting other availability . As for our products, we offer vegetarian cakes, where there is zero firm in the area that offer similar products. Therefore, the total replacement products available on the market is
To perform a break-even analysis, we have made the following assumptions: (a) retail margin= 60%, (b) the additional fixed cost of production per flavor, including advertising, bottling run and sundries, is $10 million and this is assumed to be an annual cost, except the bottling run, (c) a conservative estimate of percentage share of market figure is derived by multiplying the market segment percentages, as well as the age segment percentage for the category > 40 yrs. The percentage = 74% x 62% x 85% x 40% = 16%. We first determine the retail
The Making of a Chef was a fascinating book that alternated my perspective on cooking giving me a clearer view of working through a culinary program. Michael Ruhlman gave readers a glimpse of life within the Culinary Institute of America, which is the most critical culinary school in the United States. Nothing is left to instinct or assumed information, everything is shown whether it is with culinary maths or precisely how you lay out unresolved issues for the ideal stock. Everything was just striven to be excellent, not good, nor O.K., but miraculously perfect.
Bergerac can opt for the buy option and implement its backward integration by acquiring GenieTech. GenieTech can provide the company with eight efficient molding machines for the acquisition price of $ 5.75 million. The price includes experienced labor force and management. Bergerac can fulfill its chemical reagent demand by using 4 out of 8 moulds provided in the acquisition. Rest of the presses can be used in the expansion process or can be used to meet the demand of a third party. This investment can result in the reduction of overhead expenses by twenty six percent per unit. Bergerac can pay the amount over a period of five years making the project
Break even analysis can be used to decide whether to alter the existing product emphasis or not. For example in this case, if we refer last year’s data, we can see that the product C is not economically feasible to manufacture at $2.40 / unit. Following table gives the analysis for checking whether the company can afford to invest in additional “C” capacity.
Since 2008, Bergerac had been exploring the opportunity to begin its own production of cartridge components. Plastic suppliers like GenieTech and Elsinore faced difficulties in responding to demand spikes, leading to production delays. Such supplier unreliability made it challenging for Bergerac to optimize its cartridge production. Thus, the company had to carry more inventory of parts and finished goods than Wyckoff could have liked. The obvious appeal to fully control the supply of plastic lead to a strategy, the company has to decide whether to buy or build this capability. GenieTech owner was interested in retirement and was willing to sell the company for a purchase price of $5.75 million. GenieTech has 8 molding presses each could produce 5 cartridges per cycle with a total capacity of 10,782,720 cartridges per year with 5 days production in a week. The other alternative is to build a unit with 4 molding presses which are more efficient than the presses at GenieTech. The total capacity of the unit will be 6,097,371cartridges per year with 5 days production in a week. It is required to predict the best long term decision among the buy and build options.
Kristen and her roommate are preparing to launch Kristen’s Cookie Company in their on-campus apartment. The company will provide fresh cookies to hungry students late at night. Evaluation of the preliminary design for the company’s production process will be required in order to make key policy decisions, including what prices to charge, what equipment to order and how many orders to accept, and to determine whether the business can be profitable.