Marcia Robinson 1
INSS300 03/15/2011
Grade 42/50
EXCEL -5
discussion -3
EXECUTIVE SUMMARY
CURRYUS.COM
This report serves as a 12 month budget analysis summary for Curryus.com. Methods of analysis used
to calculate your rate of investment were based on a fixed product cost of 11$ per unit with an average
sale of 5500 units during the first five months plus a projected 5 percent increase per month from June
to December. Direct material cost remained fixed at $1 per unit and direct material cost were mixed at
$.50 per unit during the first five months, then increasing at a rate of 5 percent.
Profit-Loss
Total revenue and cost of production increased and as it peaked in December, inventory fell below 500
units. This may be directly related to an increase in direct labor and an increase in production. Profits
fell below $25K during the first eight months of the year totaling nine months in which you fell below
budget. With a 30 percent tax rate, the average annual rate of return is 24.28%.
What-if Analysis
Marcia Robinson 2
INSS300 03/15/2011
A what-if analysis was calculated for a ten percent increase in price and ten percent decrease in sales.
This caused profits to drop below $25K for 11 months out of the year with an average rate of return of
16.87%.
Recommendations include maintaining a consistent increase in sales to offset expenses. I would not
recommend increasing the cost as it may be directly related to a decline in demand. Rather, increase
the advertising budget by .5% to see if this increases sales. The conclusion from this report finds the
outlook for the company is positive.
Inventory build up is a problem need to adjust production
grade=-1
Part 4 (spice r-us merger) missing -2