New wrist watch Product Assignment | Custom Essay Services

SCENARIO: You have developed a new wrist watch product, which you believe could revolutionise the watch market. Following on from the Dragon’s Den success of Levi Root’s Reggae Reggae Sauce – (search the internet if you are unfamiliar with this story), you have decided to make a pitch to a small group of potential investors. You know that any potential investor will expect you to have a good knowledge of how much your product will cost to produce and also of the expected level of sales and profit your product is predicted to make. REQUIRED: 1. Prepare a marginal costing cost statement for your product on a ‘per unit’ and 12 months sales/production basis.5 marks (LO 1-4) 2. Produce a break-even analysis (table and graph) for your product based on 12 months activity 15 marks (LO 1-4) 3. Produce the following financial documents for the first 12 months of trading: LO 1-4 a) Cash Budget (month by month) 15 marks b) Forecast Income Statement (for the year) 10 marks c) Forecast statement of financial position (for the year) 10 marks 4. Write a 1850word business case, explaining the costing and financial data from tasks 1, 2 and 3 above, to your potential investors. 45 marks (LO 1-4)