Financial Management

An increasing number of home-based food businesses have started to cater to consumers’ trends of ordering food delivery. Many food businesses in Singapore have partnered with delivery platforms such as Grabfood, Foodpanda, and Deliveroo which charge a significant commission. A friend approaches you to analyze the viability of starting a home-based food business Requirements For the allocated product sold, you are required to:

•  Research into the average cost of various foods ingredients, labor, and overhead costs to estimate the average cost of preparing 1 set of the product in pack size suitable for delivery. Do account for any packing cost needed. State any assumptions made.
• Consider offering online sales and delivery with existing platforms. Research into online offers by competitors to determine the range of prices charged for similar products, and expenses expected with using one of the platforms including platform fees, marketing, and costs to resolve customers’ complaints. Propose a selling price to charge per product and estimate the expected sales volume per month from the online delivery. State the basis of your selling price and sales volume.
• Prepare a flexible budget for 1 month showing the expected profit/loss from this online business.
• Calculate the contribution per product, annual breakeven volume, and the volume required to earn a profit of $5,000 per month.
• Suggest any TWO(2) qualitative factors to consider when embarking on the online delivery option. We are doing Pasta Set for the products sold Pls hel

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