Cake Empire Analysis Review your Project Submission from Module 02 ****ATTACHED*** where you developed a cost card for your cookie and made a list of poten | Homework Answers

Cake Empire Analysis Review your Project Submission from Module 02 ****ATTACHED*** where you developed a cost card for your cookie and made a list of potential overhead costs.
Create an Excel spreadsheet as outlined below. Be sure that your completed spreadsheet has answers to all the questions below.

In a table, on the first tab of the spreadsheet, classify your costs as variable, fixed, or mixed. Note: Now that you have a more robust understanding of costs you may need to add some overhead costs to your list. Think about both the ecommerce costs as well as the production facility costs.
On the second tab of your Excel spreadsheet, prepare a high-low analysis of your electric costs using the following data. What is your fixed cost of electricity? What is the variable cost of electricity?

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Kilowatt Hours Used
Electric Costs

On the third tab of your spreadsheet prepare a daily contribution margin income statement based on your cost card from Module 01. Note: You must make some realistic assumptions about your fixed costs, sales level, and selling and administrative costs. Be sure to list all your assumptions. What is the contribution margin ratio for your cookie?
On the fourth tab of your spreadsheet, calculate the break-even in number of cookies per day. What is the break-even in sales dollars each day? How many cookies must you sell to earn a daily profit of $100? Does this seem realistic? ? This
paper seeks to form a cake company based on
these objectives.
Establishing a location and name for the
Setting tactical and operating criteria for the
iii. Setting cake specifications
iv. Deciding on a cake recipe
Establishing an accounting system for the cost of
each cake.
Cake Empire
? Cake Empire will major in providing pocket
friendly healthy cakes that meet the ‘conscious
consumer’s’ expectations.
? Cakes will be delivered in the New York area only
upon placing an order.
? The company seeks to take advantage of today’s
conscious consumer who is aware of eating
healthy at a pocket friendly price.
Cake Empire will be to focus on the market niche of lacking
healthy cakes for consumers with preexisting medical
conditions like diabetes, kids and consumers who just want to
keep healthy.
? Cake Empire seeks to provide pocket friendly, healthy cakes to
all New Yorkers.
The target market and selling strategy
? Cake Empire’s main target market will be the cake loving
residents of New York especially those with preexisting health
conditions and ceremony organizers.
? The company’s selling strategy will be through its storefronts
and also through e-commerce by creating online pages in
social media sites such as Facebook and Twitter.
Expansion plans
? Within a year of establishment,
Cake Empire will expand through
establishing tradition brick and
motor store fronts by using profits
to purchase new stores.
? These store fronts will serve to give
customers a place to collect orders
and to sit down and have a piece of
? Also, Cake Empire will seek to
look for additional money to meet
its operating costs through
partnering with investors.
Cake Empire’s main products
o Cake empire will look to offer a
diversity of confectionaries. This
will include:
Soft drinks
Area of Operation
o Cake Empire will operate within
the New York area.
o It will offer free delivery for cakes
within the New York area and
charge a delivery fee for orders
outside New York.
? Here
at Cake Empire, our goal is to bake and
deliver quality healthy cakes to the comfort of
your doorstep.
Long range goals
? To be the largest cake supplier in America.
? The
company’s strategy will be to use
differentiation focus strategy in targeting its
? This strategy seeks to divide the New York
populous into high and low spending consumers
and incorporating a marketing mix strategy to
penetrate the market (Lui, 2018)
? The company will also employ a market
penetration strategy by keeping its cake prices
lower than its competitors (Khan, 2014).
? Cake
Empire seeks to increase its popularity
within 6 months of establishment through
partnering with complementary industries and
advertisement through social media sites.
? To create a profit of $250,000 in the first year
which will be reinvested in establishing more
? To increase profit margins by 20% each
consecutive year.
? Cake
Empire’s cakes will come in several types,
shapes and frosting colors according to consumer
? The main cake features will be cylindrical shaped
cakes with white frosting as shown in the first
slide. They will be of 1 &2 Kg sizes.
? Cake ingredients will include: baking powder,
flour, margarine, sugar, milk eggs and frosting.
These will be fetched from the New York locale.
Pre heat oven to 350 degrees F (175 degrees Celsius).
? Grease and flour a 9*9 inch pan with paper liners.
? Cream together eggs, then stir in vanilla. Combine baking
powder and flour then add to the creamed mixture and
mix. Add milk to the mixture and stir until the paste is
smooth. Spoon batter into the prepared pan.
? Bake for 30-40 minutes.
Cake order 1
Job cost card
Customer; A
Batch A
1 kg Red Velvet cake.
Date of order
Date of completion
Job charges in ($)
Previous months
Current month
Cost summary
Material cost
Labour cost
Units completed
Product unit cost
Business starting and operating licenses.
Depreciation costs.
Delivery costs.
Insurance premiums.
? Cake
Empire shall use a job order costing system
as its accounting system. This job order costing
system is set to effectively assign and record cost
per unit output (Maskell, 2016).
? The job order costing system will allow the
company to assign costs per cake.
? This accounting system will be used in
determining cake prices and deciding on whether
the company will reach its set profit margin with
the current cake pricing.
? Starting
a company is tricky at best. This paper shows the
factors to be considered when establishing a company.
Key among this is identifying a unique product to offer
the target market and establishing a suitable location for
the company.
? The company seeks to have superior customer company
interaction through stores and e-commerce. This will
enable it to reach a profit margin of $250,000 which
gradually grows with each consecutive year.
? The company’s accounting system is designed to ensure
all company transactions are taken into account. The flow
of cost looks at how the company capital is handled.
? Khan,
M.T., (2014). The concept of ‘marketing mix
and its elements (a conceptual review paper).
International journal of information, business, and
management, 6(2).
? Lui, W., Atuahene-Gima, K. (2018). Enhancing
product innovation performance in a dysfunctional
competitive environment. The roles of comprtitive
strategies and Market-based assets. Industrial
Marketing Management.
? Maskell, B. H., Baggaley, B., & Grasso, L. (2016).
Practical lean enterprise. Productivity Press.

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