...Issues Peter Jeffrey, president of Chef’s toolkit required funding so the company could manufacture and market a new invention, a pasta server. The pasta server would be manufactured by an injection molding process. How much should he sell the pasta server for and what are the worst, best, and expected case scenarios. Analysis They initially wanted to use a single cavity production mold (one device per cycle). Four cycles could be completed per minute so the monthly production capacity was at about 40,000 units. To replace units sold the company maintained a minimum of 10,000 units of inventory. If inventory exceeded 10,000 units they would need to rent a warehouse space that cost $230 per month and the warehouse can only hold up to 35,000 units. After producing 162,000 unites Peter determined that the single mold cavity would be obsolete. The depreciation charge of $0.145 per unit on wear and tear of mold, then a combined charge of $0.017 per unit on packaging mold and tool and dies. Ten dollars per month was allowed for depreciation of equipment. Wholesale price to the distributors was $1.82 per unit, net 30 days. Peter believed 50 percent of receipts would be paid in the first month and the remainder the second. Wholesalers would sell product to retail outlets for $2.15. Similar plastic kitchen utensils that were occasionally used for pasta serving were sold for $3.45 to $5.15, with retailers receiving a 100 percent mark-up. To get noticed they believed about 500 units...
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...Case Three CHEF’S TOOLKIT INC. Cash Budgeting 企业现金需求分析和预算 1 Case Explanation: cash budgeting History: Jefferys, invention of Pasta server Production: data Marketing: data Financial Implication: data Data: Composition of Canadian Households; Balance sheet(July 15, 1994) Jefferys Personal balance sheet (July 15, 1994) Production Schedule in Unit 2 Study Questions Q1:What is the Case? (1)event?(2)Companies?(3)Persons?(4)Time? What is the problem?(5)Why is the problem?(6)Possible Solutions? Q2:Analyses (1) Background of Chef’s Toolkit Inc. ? (2) CV of managers? (3)What is the invention? (4)Company Size-up: production, marketing, and financial status? Q3:Budgeting(monthly sales : 10,000; 5,000; 30,000): production schedule, cash budget, Pro-forma income statement, Pro-forma balance sheet Q4:How can the firm avoid loss? Break –even calculation? Q5: How much money do the firm need for financing? Should Dale Raid invest? What are his risks? 3 Case Summary(案例) M r. P eter Jeffery President of Chef’s Toolkit Inc. M r. Dale Reid Private Investor 风险投资家 Obtain funds to start manufacturing and marketing a new pasta server. 4 Case Summary(案例) Produce Sell Chef’s Toolkit Inc. Pasta Server 意大利通心粉 Chef or Housewife 5 Objectives(目标) Produce projected income statements, balance sheets, and cash flow statement up to July 31, 1995. 预计财务报告 Obtain fund from Dale Reid. 6 Why Budget? 预算 If you know where you are going...
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...Case Three CHEF’S TOOLKIT INC. Cash Budgeting 企业现金需求分析和预算 1 Case Explanation: cash budgeting History: Jefferys, invention of Pasta server Production: data Marketing: data Financial Implication: data Data: Composition of Canadian Households; Balance sheet(July 15, 1994) Jefferys Personal balance sheet (July 15, 1994) Production Schedule in Unit 2 Study Questions Q1:What is the Case? (1)event?(2)Companies?(3)Persons?(4)Time? What is the problem?(5)Why is the problem?(6)Possible Solutions? Q2:Analyses (1) Background of Chef’s Toolkit Inc. ? (2) CV of managers? (3)What is the invention? (4)Company Size-up: production, marketing, and financial status? Q3:Budgeting(monthly sales : 10,000; 5,000; 30,000): production schedule, cash budget, Pro-forma income statement, Pro-forma balance sheet Q4:How can the firm avoid loss? Break –even calculation? Q5: How much money do the firm need for financing? Should Dale Raid invest? What are his risks? 3 Case Summary(案例) M r. P eter Jeffery M r. Dale Reid Private Investor President of 风险投资家 Chef’s Toolkit Inc. Obtain funds to start manufacturing and marketing a new pasta server. 4 Case Summary(案例) Sell Produce Chef’s Toolkit Inc. Pasta Server Chef or Housewife 意大利通心粉 5 Objectives(目标) Produce projected income statements, balance sheets, and cash flow statement up to July 31, 1995. 预计财务报告 Obtain fund from Dale Reid. 6 Why Budget? 预算 If you know...
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...Case Synopsis Peter and Sally Jeffery’s are trying to raise funds to start off their new business venture called Chef’s Toolkit Inc. The main product that they will be selling is the invention called the pasta server. He wants to manufacture and market this household utensil to the leading retail stores. He would like to start up the business out of his house and as the business grows he see a larger facility in the future of renting a warehouse once inventory exceeds his basement and garage capacity. The process of the initial production would be made by prefect plastic sufficient enough to meet the suppliers demand. Investor Dale Reid, is considering investing $85,000 for 50 percent stake of Chef ToolKit Inc., however, he would like to see a pro-forma before he makes his decision. Problem Statement and Objectives Situational Analysis Porter’s 5 Forces We feel that the pasta server is not an attractive industry because it has a very limited use and the industry is highly competitive. Buyer’s Power - Medium to high Buyer’s power is high because they plan to sell mature industries. Suppliers’ Power – High Suppliers’ power is high because they have to make their full payment in advance before they pick up their product. Barriers to Entry – Low Barrier to entry are low because it is a cheap price product and easy to manufacture. Threat of Substitutes – High Substitutes are high because there are many different types of utensils that can be used instead of the pasta...
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