A virtual company just hired you. Your salary, your reputation and your grade are all dependent on the job you do.
A. Selec a product and a name for your virtual company that will produce it.
B. Identify 2 competitors for your company, find their financial statements, save or copy them and submit statement of cash flows for them
C. Describe the process that you will use to manufacture your product
D. Calculate which of your competitor companies is more liquid. Find industry liquidity ratios for your product. How does your company fair?
E. List all costs, assets, equipment necessary to manufacture your product.
F. Identify behavior of all costs
G. specify breakeven point, target profit and flexible budget forumla
H. Create a sales and cash budget
I. Identify average cost per unit for your product
J. Determine if you should buy a new truck for $20,000 if you save $2000 a year in operating expenses over the old truck. Truck will last 12 years. Cost of capital 12%