Your course project will consist of a 15–20-slide Microsoft PowerPoint presentation. These slides will help you present your investment idea to the President and CEO of the public company. As such, the slides must be well crafted to help convince the leader of the company of the need for the investment, the possible risks, and potential returns. Remember, the slides should outline the key points to be made and not overwhelm the viewer with too many details. You will provide the details in the speaker notes for each slide. The slide presentation must include:
1. Cover page listing the company, project, date, and presenter.
2. Sufficient background so that a potential investor understands the business.
3. The investment idea and summary justification.
4. Enough historic data from the worksheet you develop in Modules 3 and 4 to give an investor an understanding of revenues, costs, expenses, cash flows, and potential returns in dollars and using capital budgeting analysis concepts to demonstrate viability.
5. The break-even of the project.
6. Your final analysis summary that details why the company should invest the money in this project.
7. Speaker notes in your Microsoft PowerPoint presentation to include background information that you would communicate verbally in a presentation. This speaker notes content should be the length necessary to explain the outline presented in the slides. Each slide must have the requisite speaker notes to explain the material/data presented in the slides as if you are making a formal presentation and expect to verbalize those words.
This slide presentation is due before the end of class on Day 5 of Module 5 and is worth 25% of your course final grade or 250 points. Combined with the other submitted elements of the project, the total points allocated to this course project will be 500 points or 50% of your grade. The grading of this project will be extensive to match the percentage of course grade. Make sure you provide substantial work in the creating of this project.
Breakdown of Course Project Work
Assigned questions for Module 5 are:
Q16-1: What is Zero based budgeting?Q16-2: A company’s annual sales budget is for 120,000 units, spread equally through the year. It needs to have one and three quarter’s month stock at the end of each month. If opening stock is 12,000 units, what are the number of units to be produced in the first month of the budget year?Q16-3: The standard costs for a manufacturing business are £12 per unit for direct materials, £8 per unit for direct labour and £5 per unit for manufacturing overhead. The sales projection is for 5,000 units, 3,500 units need to be in stock at the end of the period and 1,500 units are in stock at the beginning of the period. What will the production budget show in costs for that period? Q16-4: Receivable increase by £15,000 and payables increase by £11,000. What is the effect on cash flow from the Statement of Cash Flow from these two items? Q16-5: Randy Airplanes Ltd is a privately owned business. It has budgeted for profits (after deducting depreciation of £41,000) of £150,000. Debtors are expected to increase by £20,000, inventory is planned to increase by £5,000 and creditors should increase by £8,000. Capital expenditure is planned of £50,000, income tax of £35,000 has to be paid and loan repayments are due totaling £25,000. What is the forecast cash position of Randy’s at the end of the budget year, assuming a current bank overdraft of £15,000?Q17-1: What are a flexible, incremental, and activity-based budget? Please explain each.Q17-2: A company has budgeted for materials of £170,000 but the actual costs are £164,000. The company has also budgeted for labour of £130,000 with actual costs being £133,000. What is the expense variance and is it favorable or adverse?Q17-3a: How do increases/decreases in costs and/or prices effect each of the variances in standard costing?Q17-3b: How do increases/decreases in production labor effect each of the variances in standard costing? Q18-1: What is the difference between Kaizen costing, target costing, and life cycle costing?Q18-2: Trans PLC estimates that a new product will sell in sufficient quantities to justify its manufacture at a selling price of £175. The company needs to invest £5 million to produce a quantity of 10,000 of these new products per year and requires a return on that investment of 12% per annum. The current prediction is that the product will cost £140 to manufacture. How should Trans reengineer its costs to achieve the target selling price and target rate of return?Q18-3: SkinTan’s top five customers generate sales revenue of £950,000 per annum. Each generates a different gross margin as a consequence of price negotiations that have been carried out over several years. Because of their location, each customer incurs different distribution expenses. Sales commissions are paid at the rate of 6% on all sales. Fixed costs are customer specific, covering salaries of sales and office staff who service each customer. The following table shows the information for each of the top customers for the previous year.
Carry out a customer profitability analysis and make recommendations in relation to any future strategies SkinTan should take in relation to its top customers.
Grading Criteria
Assignment 2: Course Project—Cost-Volume-Profit Analysis with Capital Budgeting
In this assignment, your goal is to use CVP analysis in a presentation of your project to enable a prospective investor to decide if your project is worth investing in. You will apply the concepts of CVP analysis learned in Modules 3 and 4 to the project you selected in Module 2.
Review the Course Project Guidelines.
Assignment Overview:
From the Microsoft Excel worksheet you developed in Modules 3 and 4, create a basic pro forma statement necessary to convince someone to provide the start-up funding of the project and then use this information, along with other outside research to create a Microsoft Power Point presentation. The slides of your presentation should be visually appealing—only containing the key points while the speaker notes associated with each slide should provide the essential details.
Assignment Tasks:
To create a pro forma statement:
1. Summarize the company and explain CVP and Capital budgeting. Use outside resources to best explain CVP and capital budgeting.
2. Identify and list the various costs—fixed and variable, direct and indirect—required to execute the project.
3. Calculate the break-even point for the project and the expected financial returns. (This is the work you have been doing in the CVP template). Make sure you show your Excel formulas or provide calculations so your instructor can review your work. Save your final calculations as MS6010_M5A2_CVP_Lastname_Firstinitial.xls. The completed template must accompany the slide presentation.
4. Include a brief discussion of key points of any intangible benefits or costs associated with the project.
5. Supplement your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in.
· The detail must have enough historic data to give an investor an understanding of trends.
· You should also have sufficient written background so that a potential investor understands the business. Use the speaker notes area of your presentation to add background information that you would communicate verbally in a presentation. This background information should be 1 to 2 pages in length.
Submission Details:
Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources. Use this APA Citation Helper as a convenient reference for properly citing resources.
Your submission should include the following.
· Your MS Excel worksheet named MS6010_M5A2_CVP_Lastname_Firstinitial, detailing all calculations.
· A minimum of 15 Microsoft PowerPoint slides (full copy of slides with notes) presentation.
· Include the required information concisely highlighting only the key points necessary for the purpose of this presentation, which is to convince a prospective investor to decide if your project is worth investing in.
· Your presentation should include sections addressing the topics listed and presented in bulleted format, avoiding long paragraphs of content.
· Support your predictions and suggestions with scholarly resources and empirical evidence.
· Use APA format to cite your sources.
· Speaker notes totaling 2–3 pages providing the background summary and details for each slide.
· Name your presentation MS6010_Course Project_Lastname_Firstinitial.
