02 Jul operation management
First, read the following case, Buns Bakery, on budgeting. (pdf)
Then,complete the following assignment. (excel)
You are a staff accountant at Buns Bakery and have been asked by Nicole to evaluate one of the alternatives suggested (in the case). Using the information in the Buns Bakery Case and the above Excel file of the Buns Bakery Master Budget, choose one of the alternatives described in Part II of the case. Highlight in the spreadsheet (using comments in the respective cells) on what assumption changes you made with respect to that alternative. Incorporate those assumptions into the spreadsheet to report the dollar amount of the after-tax operating income for each of the four quarters as well as the total for the year if Buns Bakery adopts that recommendation. Then, at the bottom of the reported numbers, explain two flaws of the spreadsheet itself and/or the assumptions used in the analysis.
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