. Respond to Brett’s requests by developing an excel workbook.
2. By using your excel workbook, determine the breakeven point in number of kegs for the existing product mix based on the 2017 information.
2. Determine the target profit for 2018 and calculate which of the existing lagers should be promoted more aggressively than the others.
3. Perform market research into the craft beer brewing industry in Tasmania (there are +20 craft brewers in Tasmania) and advise Brett through a written business report if he (a) should expand by producing Brett’s Pale Ale or (b) should increase profitability through changes in the sales prices and/or mix of existing ales. Your advice must be supported by your excel workbook calculations and qualitative evidence.
4. Advise Brett on the environmental costs related to waste products and suggest innovate ways, taking into account cost considerations, in which to re-purpose the waste products for sustainable use.
5. As an appendix, briefly reflect on the leadership style your group followed in coordinating the team effort. All members must sign the appendix electronically as proof of their contribution and to show agreement that all members contributed to the team effort. It is anticipated that the majority of your team must hold one meeting at a brewery (open to the public), to develop your team and to conduct research into brewing processes. External mode students are urged to visit a brewery to develop an understanding of the production process.
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BFA612Assignment – Group written business report.Due date: Week 10 Decision making for constrained resources, make versus buy, and new product development (Loosely based on Samuels, JA & Sawers, KM 2016, ‘Arizona Microbrewery, Inc.: An Instructional Case on Management Decision Making’, Issues in Accounting Education, vol. 31, no. 4, pp. 409-415.) As a result of David Tucker’s success story (see background in publication), Brett Lee decided to quit his job to start his own brewery, Tassie B, in Tasmania, Australia. The start-up was funded by Brett’s savings and financial assistance from his family. Tassie B’s operations started on January 10, 2017 and the brewery produces three labels of specialty beers (Tassie Lager, Lonnie Lager and Hobart Lager). Brett employs one salesperson who receives a monthly salary plus a 10 percent commission. All beer is sold in kegs (returnable containers) to hotels, pubs and restaurants. Tassie B has 3 machines/vessels with a total practical capacity of 2,500 hours. All the equipment are used continuously in production runs. Current utilities (heating and refrigeration) can cope with the existing sales mix at practical capacity. Product sales, cost information and additional information for the 2017 calendar year are shown in the following table: Tassie LagerLonnie LagerHobart LagerTotalSales price per keg$300$350$325Number of kegs sold1,1514586322,241Direct labour hours per keg0.8751.2250.875Total direct labour hours – 20172,121Machine hours per keg0.701.401.225Total Machine hours – 20172,221Brett has not taken a salary since the business started. The business has generated a small profit for 2017. The following costs pertain to the 2017 calendar year: Accounting staff to assist Brett26,662.83Advertising and Marketing Costs22,994.91Brew Master/Quality Control Manager70,293.15Depreciation11,712.10Direct materials93,537.20Direct Labour120,393.25Facility costs (rent,…