Budgets | AustraliaEssayWriters

Budgets
Chill Beverage has set a first-year retail sales goal of $50 million with a projected average retail price of $1.89 per unit for a total of 26,455,026 units sold. With an average wholesale price of 95 cents per unit, this provides revenues of $25.1 million. Chill Beverage expects to break even during the final quarter of the first year. A break-even analysis assumes per-unit wholesale revenue of 95 cents per unit, a variable cost per unit of 22 cents, and estimated first-year fixed costs of $12,500,000. Based on these assumptions, the break-even calculation is:

$12,500,000/ $0.95/unit – $0.22/unit = 17,123,287

What you have to do is make a “Budgets” similar to the example, but the product is different. Use Tesla Model 3 for your budgets. Just a small paragraph on it.

There is an
associated Excel template on On-Demand Business Outlook (DBO).
Requirements:
Assume your CFO assigns you to engage in determining sensitivity to critical business drivers which
face your organization. Use the DBO template from Chapter 13 provided and modify suitably.
• Understand the difference between budget and operating plan
• Based on situational analysis, develop a game plan for the coming year. The current uncertainty due to Covid-19 provides a realistic backdrop to projections.
• Develop preliminary financial projections.
• Identify critical assumptions
• Develop process for on-demand business outlook / rolling forecasts
• Identify critical business drivers (such as 80/20 rule)

Tag: Budgets

“Budgets”

Budgets, Operating Plans, and Forecasts.