Finance and Accounting
Report

Your final report Should include an analysis of the following concepts:
a. Short summation of the problems facing this business and its
alternatives.
b. Discuss what Marcus means when he says “I am all about people,
process and product”.
c. The Key West Key Lime Pie Co grosses 1.4 million per year, makes
no profit, and owes at least $140,000 in bills. Using the information in
the episode such as selling prices, variable costs, capacity, gross
margins, and inventory control discuss why this business not making a
profit? Be specific when discussing gross margins and use examples
from the numbers discussed by Marcus and Jim.
d. Would you have accepted Marcus’s offer to Jim and Alison to accept
49% ownership, receive $1 per pie and give up control? What could
have been counter offer? Discuss the economic positives and
negatives of this “deal”.
6. Describe the management, marketing and investment issues and
explain why Marcus would invest up to $450,000 in this business?
Why did Marcus close the second location? Be specific with numbers
and discuss what you think Marcus was thinking to turn this into a
profitable business. Discuss Marcus’s strategy to lower the selling
price, increase the product cost but make more money?
f. In your conclusion, please comment on the managerial accounting and
business concepts that Marcus changed to turn this failing business
around? Yes, it is made for TV, and feel free to discuss any other
issues that interested you and how it relates to one of the business
disciplines (i.e. managcn‘ient, marketing. finance).
Students will be asked to volunteer and present parts of their paper in
class. All work is to be handed in on NOVClHl‘iCl” ‘7 and late work will not
be accepted and count as a zero. Bonus points for class presentations
and volunteersll
Please feel free to contact me if you have any questions or need any
additional assistance.

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