Assignment: Sugar and Spice Bakery
Questions
1. Perform a business size-up of Sugar and Spice Bakery.
2. Qualitatively analyze the opportunity of closing the storefront to cater events.
3. Which of the cash flows associated with catering are relevant (future, cash and different)?
4. Of these, which are recurring costs and which are one=time costs?
5. Perform a differential analysis for the catering-events option. Calculate the Return on investment and payback period for this option. (ROI = Net cash flow / total long term investments) (Payback = total long term investments / net cash flow)
6. As Rosetta Kilbourne, would you close the store?
Attachment:- Sugarand-Spice.pdf