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Business planningCase study - WorksheetBefore starting this worksheet, make sure you have thoroughly read the case material. 1. Which legal business structure would be most appropriate for taktical.com? Justify your answer. (4 Marks) 2. Use the axes below to draw a break-even diagram for taktical.com.
(5 Marks) 3. If taktical.com do manage to meet the forecasts of sales that Frank has made, what will be their margin of safety? _____________ units (1 Mark) 4. Use the break-even diagrams below to show the effect on break-even of each of the following changes in taktical.com's position. (a) Frank decides to reduce the price to boost sales.
(b) Frank finds a new supplier who can create the CDs for £1.25 instead of the original £2.50.
(c) Problems with the compatibility of the software mean that the programming costs for the software rise by £1,750.
(d) Strong initial sales are encouraging. Frank decides to replace the original version with a new premium version which he sells for £85.
(8 Marks) 5. Use the figures given in the case material to prepare a cash flow forecast for the first year of operation. Use the table below to fill in your figures. N.B. Use the following assumptions:
(12 Marks) 6. Frank would like some help preparing the business plan that the bank have asked for. Using the break-even forecast and the cash flow forecast that you have already produced, create a full business plan for taktical.com. Make sure you include the following:
(20 Marks) Total Marks = 50 |
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