Accounting management. analysis the case finish the requirement

George Market (“SGM”). SGM is a small quaint marketplace at the
outskirts of a developing area just outside of Toronto. SGM has a similar concept to that
of the popular St. Lawrence Market in Toronto, Ontario. Justyna works in Toronto and
really enjoys visiting the many vendors, merchants, and artisans at the St. Lawrence
market whenever she has the chance to. Visiting for lunch and a great cup of coffee
(and homemade chocolate) is welcomed leisure time!
Justyna was contacted by one of the vendors at SGM to inform her that there are some
openings at SGM. Justyna has dreamed about the possibility of opening up her own
shop at one of these markets. Given the growing area that SGM is located, she believes
that this would be a great opportunity to realize this dream. Justyna has approached
you as a long-time trust friend as she knows that you have the skills to help start this
business up.
Justyna:
RCMAG! How are you? Listen, I have a proposal for us and need your help! My buddy
at the SGM has informed me that there is space for a new vendor. It’s a fantastic
opportunity. Here are some of the parameters:
– One vendor location
– There is a small backroom which we can turn into a prep area (to
prepare/assemble food or store inventory)
– The rent will be $900 per month
– Basic utilities are included, however it’s an extra $30 per month for WiFi
– Everything will be set for us to go, so we won’t have to worry about purchasing
equipment (it’s a simple booth/store that has a register and our goods)
– We should start small with 3 products (more information below in requirements); I
need your help choosing the 3 products and providing some costing options
– I will take care of the rest (signing the space, marketing, etc.)
– I primarily need your “brains” for the accounting and finance stuff!
RCMAG (you):
Wow, Justyna! This is a great opportunity. I am in! I will prepare something for you to
review next week. I am excited!©Amy Kwan, RSM22 Individual Assignment Summer 2021 Page 2 of 3
Required:
1. [Start] Choose two (2) ‘start-up’ products that you propose to sell at the store
Parameters:
Requires some assembly (i.e., materials and labour/machine hours)
Assembly (manufacturing) can be done on and/or off-site (keep in mind
the spacing of the booth)
Product not too complex (recommendation is to keep it simple; think of
things that you might find at small markets (food or retail)).
2. [PPT] Provide two costing options and recommended selling price for each
product as a single stand-alone unit sold (i.e., cost and price for single unit):
Reference the products/options as: Product 1-A, Product 1-B… Product 2-
A, Product 2-B
Explain the differences, pros/cons, assumptions, consideration points of
each costing option to Justyna (remember, she is not an accountant!)
Make sure to clearly outline your costing notes and assumptions
Hint: think about the cost elements you can assess and change
Recommended format: create 2-3 slides with options, assumptions and
recommendations for each product; include general calculations
3. [PPT] Adding complexity: Include as part of your PPT slide deck some
considerations, including but not limited to thoughts such as: bundle sales,
discounts, seasonality (depending on your product), etc.
Name this section of your slide deck “decision-making – strategic and
operational considerations”
4. [Excel] Budgeted Forecast (MS Excel) and Scenario Analysis of your first 12-
months of operations (sales and costs/expenses under various scenarios):
At the top of each ‘worksheet’ (or for each scenario forecast provided),
name the file with a scenario number and title that reflects the basic
parameters and assumptions, i.e., Budgeted Forecast Scenario 1: Product
1-A