Analyze and interpret budget and actual financial information provided

Assessment 1: Case Study

Develop an Operational Plan

 

Ensure your Operational Plan includes the following:

1. Background

2. Objectives

3. Policies, procedures and practices, which includes human resources initiatives, and a list of relevant policies and procedures

4. Legislative and regulatory issues

5. Intellectual Property and Copyright.

6. Resources (including costs)

7. Key Performance Indicators

8. Consultation

9. Monitoring

10. Operational Action Plan

11. Operational Plan Variations (including two contingency plans)

12. Approval of plan

 

Part B- Additional Tasks (Questions)

Analyze and interpret budget and actual financial information provided

 

Assessment 2: Short Answer Questions

11 QUESTIONS

Nationl Camper Trailers – 8 month Profit and Loss (July -15 to Feb – 16) Budget for (Mar to June 16) Forecast Year

End

Sales of Trailers

Forecast No. of Trailers Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 YTD Actual YTD Budget Variance Mar-16 Apr-16 May-16 Jun-16 30-Jun-16

Dandenong 80 6 11 3 3 7 2 6 8 46 55 (9) 9 9 9 9 82

Caboolture 24 2 3 2 1 2 1 1 3 15 16 (1) 2 2 2 2 23

Expo Truck 48 5 5 3 2 1 1 2 2 21 29 (8) 4 4 4 4 37

13 19 8 6 10 4 9 13 82 100 (18) 15 15 15 15 142

Ave sale price $29,500 $383,500 $560,500 $236,000 $177,000 $295,000 $118,000 $265,500 $383,500 $2,419,000 $2,950,000 -$531,000 $442,500 $442,500 $442,500 $442,500 $4,189,000

Factory Manufacturing Ave Factory Cost Per Trailer $3,400

Raw materials $13,156 $19,228 $8,096 $6,072 $10,120 $4,048 $9,108 $13,156 $82,984 $101,200 -$18,216 $15,180 $15,180 $15,180 $15,180 $143,704

Labour $36,300 $36,250 $36,250 $36,000 $35,150 $34,200 $33,100 $35,830 $283,080 $268,400 $14,680 $40,260 $40,260 $40,260 $40,260 $444,120

Factory costs * $4,004 $5,852 $2,464 $1,848 $3,080 $1,232 $2,772 $4,004 $25,256 $30,800 -$5,544 $4,620 $4,620 $4,620 $4,620 $43,736

Repairs & Maintence $5,148 $7,524 $3,168 $2,376 $3,960 $1,584 $3,564 $5,148 $32,472 $39,600 -$7,128 $5,940 $5,940 $5,940 $5,940 $56,232

Factory COG’s $58,608 $68,854 $49,978 $46,296 $52,310 $41,064 $48,544 $58,138 $423,792 $440,000 -$16,208 $66,000 $66,000 $66,000 $66,000 $687,792

Assembly & Fitout Ave Assembly Cost Per Trailer $9,200

Accessories 23% $24,518 $35,834 $15,088 $11,316 $18,860 $7,544 $16,974 $24,518 $154,652 $188,600 -$33,948 $28,290 $28,290 $28,290 $28,290 $267,812

Labour 56% $59,696 $87,248 $36,736 $27,552 $45,920 $18,368 $41,328 $59,696 $376,544 $459,200 -$82,656 $68,880 $68,880 $68,880 $68,880 $652,064

Factory costs * 8% $8,528 $12,464 $5,248 $3,936 $6,560 $2,624 $5,904 $8,528 $53,792 $65,600 -$11,808 $9,840 $9,840 $9,840 $9,840 $93,152

Repairs & Maintence 8% $8,528 $12,464 $5,248 $3,936 $6,560 $2,624 $5,904 $8,528 $53,792 $65,600 -$11,808 $9,840 $9,840 $9,840 $9,840 $93,152

Finishing costs 5% $5,330 $7,790 $3,280 $2,460 $4,100 $1,640 $3,690 $5,330 $33,620 $41,000 -$7,380 $6,150 $6,150 $6,150 $6,150 $58,220

$8,200 Assembly COG’s $106,600 $155,800 $65,600 $49,200 $82,000 $32,800 $73,800 $106,600 $672,400 $820,000 -$147,600 $123,000 $123,000 $123,000 $123,000 $1,164,400

Average Trailers completed per month

Cost of the Expo Truck

Expenses

Staff Expenditure $16,500 $16,200 $15,890 $16,199 $15,100 $16,200 $16,000 $16,350 $128,439 $145,000 -$16,561 $17,000 $17,000 $17,000 $17,000 $196,439

Accomodation $8,528 $12,464 $5,248 $3,936 $6,560 $2,624 $5,904 $8,528 $53,792 $75,000 -$21,208 $8,000 $8,000 $8,000 $8,000 $85,792

Meal and entertainment $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $3,500 $28,000 $30,000 -$2,000 $3,300 $3,300 $3,300 $3,300 $41,200

Cost of Trailer Transport $4,500 $4,400 $4,300 $4,610 $4,500 $4,500 $4,400 $4,500 $35,710 $33,000 $2,710 $4,500 $4,500 $4,500 $4,500 $53,710

Trailer transport insurance $750 $750 $750 $750 $750 $750 $750 $750 $6,000 $6,000 $0 $750 $750 $750 $750 $9,000

Costs of Expo Truck $33,778 $37,314 $29,688 $28,995 $30,410 $27,574 $30,554 $33,628 $251,941 $289,000 -$37,059 $33,550 $33,550 $33,550 $33,550 $386,141

Gross Margin $184,514 $298,532 $90,734 $52,509 $130,280 $16,562 $112,602 $185,134 $1,070,867 $1,428,000 -$357,133 $219,950 $219,950 $219,950 $219,950 $1,950,667

48% 53% 38% 30% 44% 14% 42% 48% 44% 48% 50% 50% 50% 50% 47%

Selling & administartion Expenses

Advertising $16,500 $16,200 $15,890 $16,199 $15,100 $16,200 $16,000 $16,350 128,439 120,000 $8,439 $18,000 $18,000 $18,000 $18,000 $200,439 Travel & Accomodation $6,500 $6,200 $5,890 $6,199 $5,100 $6,200 $6,000 $6,350 48,439 55,000 -$6,561 $6,500 $6,500 $6,500 $6,500 $74,439 Office Staff $36,300 $36,250 $36,250 $37,000 $41,250 $41,250 $41,250 $42,500 312,050 280,000 $32,050 $46,500 $46,500 $46,500 $46,500 $498,050 Communications $5,330 $7,790 $3,280 $2,460 $4,100 $1,640 $3,690 $5,330 33,620 30,100 $3,520 $3,800 $3,800 $3,800 $3,800 $48,820 Vehicle expenses $3,512 $3,200 $3,819 $3,199 $3,100 $3,200 $3,416 $3,148 26,594 27,500 -$906 $3,400 $3,400 $3,400 $3,400 $40,194 Depreciation $19,583 $19,583 $19,583 $19,583 $19,583 $19,583 $19,583 $19,583 156,664 156,664 $0 $19,583 $19,583 $19,583 $19,583 $234,996 Insurance $3,512 $3,200 $3,819 $3,199 $3,819 $3,199 $3,100 $3,200 27,048 27,500 -$452 $3,400 $3,400 $3,400 $3,400 $40,648 Operating supplies $120 $130 $10 $300 $228 $122 $130 $140 1,180 1,200 -$20 $150 $150 $150 $150 $1,780 Rent $22,916 $22,916 $22,916 $22,916 $22,916 $22,916 $22,916 $22,916 183,328 183,350 -$22 $22,916 $22,916 $22,916 $22,916 $274,992 Office costs $950 $980 $1,521 $1,200 $650 $600 $1,250 $989 8,140 8,000 $140 $1,000 $1,000 $1,000 $1,000 $12,140 Computer Expenses $2,100 $1,950 $1,980 $2,300 $2,450 $2,100 $1,800 $900 15,580 16,000 -$420 $2,000 $2,000 $2,000 $2,000 $23,580

$117,323 $118,399 $114,958 $114,555 $118,296 $117,010 $119,135 $121,406 $941,082 $905,314 $35,768 $127,249 $127,249 $127,249 $127,249 $1,450,078

Net Profit Before Taxes $67,191 $180,133 -$24,224 -$62,046 $11,984 -$100,448 -$6,533 $63,728 $129,785 $522,686 -$392,901 $92,701 $92,701 $92,701 $92,701 $500,589