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Phionia Phelps has developed a gourmet cat food Not only is this food eagerly eaten by the most finicky felines but it specially formulated to prevent the many health problems of aging cats

Phionia Phelps has developed a gourmet cat food. Not only is this food eagerly eaten by the most finicky felines, but it specially formulated to prevent the many health problems of aging cats. Phionia has been making the food on her kitchi range and selling it at $250 per case only to close acquaintances who are also cat lovers. One of her wealthy acquaintances has now offered to Invest in her business if Phionia will begin selling the product through her website. However, the investor wants Phionia to produce a budget for the first six months of operation. Based on her experience to date, Phionia predicts the following sales in cases: 1. Prepare the following budgets for the period, January through June: a. Sales budget in dollars. b. Production budget in units. c. Direct materials purchases budget in pounds. d. Direct materials purchases budget in dollars. e. Direct manufacturing labor budget in dollars. Comment on the viability of this business and the advisability of the investor making a $50,000 investment to get it started.

 

May 21 2020 View more View Less

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