bb115005s introduction to accounting and finance new footwear product 496233

Assignment Brief Semester 1 2011/12

NEW FOOTWEAR PRODUCT

SCENARIO:

Youhave developed a footwear product, which you believe could revolutionize the footwear market.

Following on from the Dragon s Den success of Levi Root s Reggae Reggae Sauce (search the internet if you are unfamiliar with this story), you have decided to make a pitch to a small group of potential investors.

You know that any potential investor will expect you to have a good knowledge of how much your product will cost to produce and also of the expected level of sales and profit your product is predicted to make.

REQUIRED:

1. Provide a list of the assumptions upon which you are basing your revenue and cost figures. 5 marks
2. Prepare a marginal costing cost statement for your product on a per unit and 12 months sales/production basis. 10 marks
3. Produce a break-even analysis (table and graph) for your product based on 12 months activity 15 marks
4. Produce the following financial documents for the first 12 months of trading:
   1. Cash Budget 20 marks
   2. Forecast Income Statement 10 marks
   3. Forecast Balance Sheet 10 marks
5. Write a 1,000 word pitch explaining the costing and financial data from tasks 1-4 above, to your potential investors. 30 marks

Total 100 marks

2744 Words

10 Sources

Fully Referenced