YOUR ROLE D You work for Keaton, a small- to medium-sized certified public accounting firm (CPA), known for working with crowdfunding companies. You have been assigned to run some preliminary numbers for the LawnBots team. The LawnBots team knows one thing lawn mowers. What they do not know is how to run or operate the business side, so they hired your CPA firm to help them understand the financial side of running their first crowdfunding campaign. Their first issue is determining what they need to set their reserve at for how much they need to raise in the campaign to not only breakeven but turn this into the revolutionary product they truly believe it to be. The team has asked you to look overestimates from the manufacturing plant to help them set the funding goal. PART 1 The team is eager to bring this to market and thinks they could be very successful and project 10,000 units could be sold. They are worried about setting the right price but want to make at least 30 to 40% profit. They are unsure about what direction to take. They have seen other less impressive models sell for $600 on average. and have asked for help in determining how to proceed on the production front. They have run prototype builds themselves in which they detailed the process in the attached schedule (see Table 1). Additionally, they think a full-time factory for mass production will fall anywhere between $700,000 to $1 million. They have asked your firm for advice on the product price. Table 1. LawnBots Prototype Cost Schedule Utilities, Supplies, Build Machining Hours Materials Cost Other Expenses 11.0 50 19749 206.78 1,15 55 276.49 22746 12 20 20737 82.71 [3] 22 236.99 90.98 14 15 19749 62.03 1.45 10 21724 41.36 1.46 12 217.24 49.63 15 16 20737 66.17 1.51 12 192.55 49.63 1.52 18 19255 74.44 1.53 12 177.74 49.63 154 13 19749 53.76 1.55 12 20737 49.63 1.56 16 21724 66.17 1.6 12 20737 49.63 18 12 246.86 49.63 1.9 11 19749 45.49 2.0 15 18762 62.03 21 12 192.55 49.63 2.15 12 18762 49.63 Note: All monetary values are represented in U.S. dollars.
YOUR ROLE D You work for Keaton, a small- to medium-sized certified public accounting firm (CPA), known for working with crowdfunding companies. You have been assigned to run some preliminary numbers for the LawnBots team. The LawnBots team knows one thing lawn mowers. What they do not know is how to run or operate the business side, so they hired your CPA firm to help them understand the financial side of running their first crowdfunding campaign. Their first issue is determining what they need to set their reserve at for how much they need to raise in the campaign to not only breakeven but turn this into the revolutionary product they truly believe it to be. The team has asked you to look overestimates from the manufacturing plant to help them set the funding goal. PART 1 The team is eager to bring this to market and thinks they could be very successful and project 10,000 units could be sold. They are worried about setting the right price but want to make at least 30 to 40% profit. They are unsure about what direction to take. They have seen other less impressive models sell for $600 on average. and have asked for help in determining how to proceed on the production front. They have run prototype builds themselves in which they detailed the process in the attached schedule (see Table 1). Additionally, they think a full-time factory for mass production will fall anywhere between $700,000 to $1 million. They have asked your firm for advice on the product price. Table 1. LawnBots Prototype Cost Schedule Utilities, Supplies, Build Machining Hours Materials Cost Other Expenses 11.0 50 19749 206.78 1,15 55 276.49 22746 12 20 20737 82.71 [3] 22 236.99 90.98 14 15 19749 62.03 1.45 10 21724 41.36 1.46 12 217.24 49.63 15 16 20737 66.17 1.51 12 192.55 49.63 1.52 18 19255 74.44 1.53 12 177.74 49.63 154 13 19749 53.76 1.55 12 20737 49.63 1.56 16 21724 66.17 1.6 12 20737 49.63 18 12 246.86 49.63 1.9 11 19749 45.49 2.0 15 18762 62.03 21 12 192.55 49.63 2.15 12 18762 49.63 Note: All monetary values are represented in U.S. dollars.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
None
![YOUR ROLE
D
You work for Keaton, a small- to medium-sized certified public accounting firm (CPA), known for working with
crowdfunding companies. You have been assigned to run some preliminary numbers for the LawnBots team.
The LawnBots team knows one thing lawn mowers. What they do not know is how to run or operate the business
side, so they hired your CPA firm to help them understand the financial side of running their first crowdfunding
campaign. Their first issue is determining what they need to set their reserve at for how much they need to raise in
the campaign to not only breakeven but turn this into the revolutionary product they truly believe it to be. The team
has asked you to look overestimates from the manufacturing plant to help them set the funding goal.
PART 1
The team is eager to bring this to market and thinks they could be very successful and project 10,000 units could
be sold. They are worried about setting the right price but want to make at least 30 to 40% profit. They are unsure
about what direction to take. They have seen other less impressive models sell for $600 on average. and have
asked for help in determining how to proceed on the production front. They have run prototype builds themselves
in which they detailed the process in the attached schedule (see Table 1). Additionally, they think a full-time
factory for mass production will fall anywhere between $700,000 to $1 million. They have asked your firm for
advice on the product price.
Table 1. LawnBots Prototype Cost Schedule
Utilities, Supplies,
Build
Machining Hours
Materials Cost
Other Expenses
11.0
50
19749
206.78
1,15
55
276.49
22746
12
20
20737
82.71
[3]
22
236.99
90.98
14
15
19749
62.03
1.45
10
21724
41.36
1.46
12
217.24
49.63
15
16
20737
66.17
1.51
12
192.55
49.63
1.52
18
19255
74.44
1.53
12
177.74
49.63
154
13
19749
53.76
1.55
12
20737
49.63
1.56
16
21724
66.17
1.6
12
20737
49.63
18
12
246.86
49.63
1.9
11
19749
45.49
2.0
15
18762
62.03
21
12
192.55
49.63
2.15
12
18762
49.63
Note: All monetary values are represented in U.S. dollars.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fddf1f681-ea15-4e9c-8e80-96873bbe5dbd%2F6bb5affe-acdd-4c7a-8744-c3099e4682ad%2Fwiu9cn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:YOUR ROLE
D
You work for Keaton, a small- to medium-sized certified public accounting firm (CPA), known for working with
crowdfunding companies. You have been assigned to run some preliminary numbers for the LawnBots team.
The LawnBots team knows one thing lawn mowers. What they do not know is how to run or operate the business
side, so they hired your CPA firm to help them understand the financial side of running their first crowdfunding
campaign. Their first issue is determining what they need to set their reserve at for how much they need to raise in
the campaign to not only breakeven but turn this into the revolutionary product they truly believe it to be. The team
has asked you to look overestimates from the manufacturing plant to help them set the funding goal.
PART 1
The team is eager to bring this to market and thinks they could be very successful and project 10,000 units could
be sold. They are worried about setting the right price but want to make at least 30 to 40% profit. They are unsure
about what direction to take. They have seen other less impressive models sell for $600 on average. and have
asked for help in determining how to proceed on the production front. They have run prototype builds themselves
in which they detailed the process in the attached schedule (see Table 1). Additionally, they think a full-time
factory for mass production will fall anywhere between $700,000 to $1 million. They have asked your firm for
advice on the product price.
Table 1. LawnBots Prototype Cost Schedule
Utilities, Supplies,
Build
Machining Hours
Materials Cost
Other Expenses
11.0
50
19749
206.78
1,15
55
276.49
22746
12
20
20737
82.71
[3]
22
236.99
90.98
14
15
19749
62.03
1.45
10
21724
41.36
1.46
12
217.24
49.63
15
16
20737
66.17
1.51
12
192.55
49.63
1.52
18
19255
74.44
1.53
12
177.74
49.63
154
13
19749
53.76
1.55
12
20737
49.63
1.56
16
21724
66.17
1.6
12
20737
49.63
18
12
246.86
49.63
1.9
11
19749
45.49
2.0
15
18762
62.03
21
12
192.55
49.63
2.15
12
18762
49.63
Note: All monetary values are represented in U.S. dollars.
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