1. An executive summary outlining the key challenges that the company is facing and the main outcomes from the analysis work you have under taken so far (250-300 words).
2. A discussion of the need for budgets and strategic planning focusing on whether budgets are actually needed or should be dispensed with (Document 1) (225-275 words).
3. A discussion of the break-even analysis of the proposed new Rugby boot (Document 3) with particular emphasis on the following areas : a. An explanation of the different types of cost behaviour
and why all fixed costs are in reality stepped fixed costs (90-110 words). b. A review of the risk and return offered by the two manufacturing options with reference to the concept of operating
gearing and a recommendation on which option Pooma Sports Ltd should choose (210-240 words).
4. A discussion of the reasons for the differences between the net cash flows and the operating profit in the statements above (Document 4), and in particular why net cash flow remains negative
when the company returns to profit at the end of the six-month period (325-375 words).
5. A discussion of the original and proposed costing methods above (Document 5) with particular emphasis on the following areas: a. A critical appraisal of the reasons for the choice of
apportionment bases used in both the original and proposed costing methods (275-325 words); b. A critical appraisal of the Sales Director’s view that the proposed costing method is superior because
it reduces the overheads chargeable to the Sports Clothing and Sports Equipment cost centres (180-210 words).