KeistC Module8
The Bottled Water Company
Executive Summary Report
CJ Keist
CSU-Global Campus
ACT 500 – Managerial Accounting
Dr. Milan J. Havel
Oct. 28th, 2012
CASE STUDY: Prepare an executive summary to Ginnie Adams, the owner of the Bottled Water Company, with your results from the comprehensive budget for the new product and how launching the new product would affect net income.
The Bottled Water Company
Executive Summary
To: Ginnie Adams, CEO
Report Prepared by: CJ Keist
Topic: Proposal of new flavored bottled water product
The Bottled Water Company provides leading industry technology of multi-level filter water system along with enhanced mineral infusion for improved health benefits for our customers. The Bottled Water Company employees take extreme pride in providing only the highest quality product, while also paying close attention to the impact our products have on the environment. In recent years our sales have become stagnant and below expected sales forecasts. This is due to increased competition from our main competitors offering new flavored water beverages. It is my opinion that we must also offer a new flavored product in order to gain entry into this new growing market. The new flavored water product will still follow our highest standards of multi-level filtering system along with the infusion of mineral additives to keep our product ahead of our competitors with strong health benefits. Attached is my spreadsheet detailing, a very conservative, forecast of expected sales for this new product. It is my expectations that we will most likely exceed these forecasted numbers. I am expecting sales of at least 177,000 units at a sale cost of $1 per 20oz bottle product; a price below our closet competitors pricing of the same sized bottled drink. The cost of new materials needed will be around $36,240, with direct labor at $1,416. After figuring in variable and fixed costs along with sells and administrative
Executive Summary Report
CJ Keist
CSU-Global Campus
ACT 500 – Managerial Accounting
Dr. Milan J. Havel
Oct. 28th, 2012
CASE STUDY: Prepare an executive summary to Ginnie Adams, the owner of the Bottled Water Company, with your results from the comprehensive budget for the new product and how launching the new product would affect net income.
The Bottled Water Company
Executive Summary
To: Ginnie Adams, CEO
Report Prepared by: CJ Keist
Topic: Proposal of new flavored bottled water product
The Bottled Water Company provides leading industry technology of multi-level filter water system along with enhanced mineral infusion for improved health benefits for our customers. The Bottled Water Company employees take extreme pride in providing only the highest quality product, while also paying close attention to the impact our products have on the environment. In recent years our sales have become stagnant and below expected sales forecasts. This is due to increased competition from our main competitors offering new flavored water beverages. It is my opinion that we must also offer a new flavored product in order to gain entry into this new growing market. The new flavored water product will still follow our highest standards of multi-level filtering system along with the infusion of mineral additives to keep our product ahead of our competitors with strong health benefits. Attached is my spreadsheet detailing, a very conservative, forecast of expected sales for this new product. It is my expectations that we will most likely exceed these forecasted numbers. I am expecting sales of at least 177,000 units at a sale cost of $1 per 20oz bottle product; a price below our closet competitors pricing of the same sized bottled drink. The cost of new materials needed will be around $36,240, with direct labor at $1,416. After figuring in variable and fixed costs along with sells and administrative