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Assignment: Budget Planning and Control
Due Week 9 and worth 200 points
Before approaching this assignment, be sure that you have watched the following video.

Budgetary Planning featuring Babycakes *FULL VIDEO*. (2016). Babycakes, a specialty bakery, is the company that will be considered for all parts of your budget
planning and control report. For this assignment, you will develop a three to four (3 – 4) page paper in
1. Briefly discuss the ways a realistic budget will benefit the owner of Babycakes versus having no
budget at all. Be sure to use Babycakes as the company and any specific product details in your
explanation.
2. Prepare a sales budget for the LA Babycakes store for the 4th quarter of 2016. Present the
number of units, sales price, and total sales for each month; include October, November, and
December, and a total for the quarter. Use one-half of the Valentine’s Day sales as the basis for
a usual day in the new quarter. Use 30 days for each month. Calculate the total sales for each
month for October, November, and December.
3. Create three (3) new products, one (1) for each of the three (3) holiday seasons in the 4th
quarter. Estimate the sales units, sales price, and total sales for each month. Describe the
assumptions used to make these estimates. Include an overview of the budget in the report,
presenting the actual budget as an appendix with all data and calculations. Add these amounts
4. The owner of Babycakes is interested in preparing a flexible budget rather than the static budget
she currently uses. She does not understand why, when sales increase, her static budget often
shows an unfavorable variance. Explain how a flexible budget will overcome this problem. Use
the details of your newly prepared budget for the 4th quarter of 2016 to address her concern.
5. Imagine that Babycakes is facing a financial challenge that is causing the actual amount of money
that it spends to become significantly more than its budgeted amount. Include a discussion of
your own unique cause of the overspending. Explain the corrective actions needed to address
these challenges.
6. Integrate relevant information from at least three (3) quality academic resources in this