The London Delight is a company that prepares meals for commuters in its kitchen located next to the busiest train station. Company seen a growth in its sales post Covid19. The current trend that resulted increase in revenue is takeaways, using third party app orders (online). The company’s planning and actual budgets for January shown below:

Assessmen 

Individual Coursework

9 May 2023 @ 0900hrs

This assignment accounts for 50% of the module marks.

 Your Task:

The London Delight is a company that prepares meals for commuters in its kitchen located next to the busiest train station. Company seen a growth in its sales post Covid19. The current trend that resulted increase in revenue is takeaways, using third party app orders (online). The company’s planning and actual budgets for January shown below:

The London Delight

Planning and actual budgets for the month ended January 31^st, 2023

                          

                                                            PLANNING             ACTUAL

Regular meals quantity   (q)                50 000                    40 000

Online meals quantity     (q)                30 000                    35 000

Revenues (£6.00q)                                £480 000                £450 000

Expenses:

Raw material (£3.50q)                           280 000                  258 500

Chef Salary   (£10 000+£0.25q)              30 000                    29 000

Wages and salaries (£35 500+£0.50q)   75 500                    73 500

Utilities (£1 500 + £0.15q)                      13 500                    13 900

Facility rent                                             6 000                      6 000

Insurance                                              3 800                      3 800

Fuel                                                      18 500                   17 800

Delivery charges (£6 500 + £1.50qm)     19 250                     18 950

Business rates and taxes                         8 000                      8 000

Repairs and maintenance                        5 000                      4 500

Net Operating Income                         £20 450                  £16 050

qm= quantity in miles (8500 budgeted 8300 Actual miles in January)

 

Required:

 

1. i) Prepare a report showing London Delight revenue and spending variance for January 2023?
2. ii) Outline the objectives of budgeting and explain how London Delight benefits from engaging in robust budgetary processes? (25 marks)

 

1. London Delight’s income statement for the period ending 31 December 20×2 is as follows:

£

Sales (35000q)                                               175,000

Direct Material                                                   70,000

Direct Wages                                                    35,000

Variable overheads                                           21,875

Fixed overheads                                                 8,750

Admin Overheads                                             26,250

Selling & distributing overheads                         15,300

177,175

Profit/Loss                                                     (2,175)

Calculate and comment:

• The contribution per unit and break-even sales
• Profitability ratios
• Evaluate viability of proposal when increase in selling price and wages by 10% will generate profits for upcoming period.
• Explain results and show benefits of Cost volume profit analysis (20 marks)

 

1. Management of London Delight carried out marketing research and found using modern machinery will improve efficiency and reduce energy consumption. There are two proposals under consideration:

 

Proposal 1              Proposal 2

Equipment cost            £700,000                £900,000

Useful life                    5 years                   5 years

Cash flow year 1          £100,000                £50,000

Year 2                         £150,000                £80,000

Year 3                         £225,000                £200,000

Year 4                         £300,000                £400,000

Year 5                         £300,000                £550,000

 

NB: cost of capital 10%

Based on above details:

• Assess and effectively apply investment appraisal techniques (Payback, NPV, ARR, IRR etc) to advise management on above proposals outlining merits of each technique. (25 marks)

 

1. Explain the terms profitability and sustainability. Suggest management potential sources of finance to fund proposals in part c. Your report should advise the London Delight on the measures they should adopt to ensure the attainment of sustainability. (20 marks)

 

The word count for this assignment is 2,000 words +/- 10% and will not include the title page, executive summary, contents page or bibliography.

 

It is important that you show knowledge of key debates within the wider literature. Also, it is strongly advised that you are critical in your writing and ensure a good level of integration and coherence in applying theories. Please work on, and ensure an excellent level of criticality, coherence, and flow of your report. This will require effective discussion and clarity.

 

Please note that a significant amount of the marks is awarded on the basis of wider reading, critical and logical presentation, quality of argument, referencing, academic integrity and academic writing conventions. Please see Assessment Criteria on the Moodle.

 

 

Reassessment

The reassessment will be a resubmission of this report, with tracked changes made in response to the feedback given. The date for Reassessment is TO BE ADVISED.

 

The Learning Outcomes assessed by this assessment are:

 

Knowledge

1. Demonstrate an understanding of different markets and sources of finance; and the role of budgeting in an organisation. 
2. Be able to assess budgets based financial data to support organisational objectives (CMI Los 2).

 

Thinking skills

1. Analyse the information contained in a company’s annual report; and appraise finance and investment decision.

 

Skills for life and work (general skills)

1. Demonstrate an understanding of the context within which accounting operates, and the various local and international standards that need to be complied with.

 

Subject-based practical skill

1. Effectively apply budgets and investment appraisal techniques.
2. Effectively apply key ratios appropriate for analysing the financial performance of the organisation.
3. Understand how to evaluate financial proposals for expenditure submitted by others (CMI Los 3).

 

We strongly suggest that you try to submit all coursework by the deadline set as meeting deadlines will be expected in employment. However, in our regulations, UEL has permitted students to be able to submit their coursework up to 24 hours after the deadline.  The deadline is published in this module guide.  Coursework which is submitted late, but within 24 hours of the deadline, will be assessed but subjected to a fixed penalty of 5% of the total marks available (as opposed to marks obtained).  If you submit twice, once before the deadline and once during the 24-hour late period, then the second submission will be marked and 5% deducted.  This rule only applies to coursework.  It does not apply to examinations, presentations, performances, practical assessments or viva voce examinations.  If you miss these for a genuine reason, then you will need to apply for extenuating circumstances, or accept that you will receive a zero mark.

 

Further information is available in the Assessment & Feedback Policy at

https://www.uel.ac.uk/Discover/Governance/Policies-Regulations-Corporate-documents/Student-Policies (click on other policies)

 

1. Marks distribution for the task:

 

Marks distribution	Maximum Mark
Objectives of Preparing a Budget, Revenue and Spending Variance Report	25
Financial statement analysis	20
Investment appraisal	25
Advising on Profitability, Sustainability and sources of finance	20
Clarity & Structure: i.e. detailed, coherent and formal structure should be demonstrated. It also should be well presented	5
Referencing: appropriate application of Harvard referencing should be evident	5
Total Mark	100

 

1. Guidance on referencing

As a student you will be taught how to write correctly referenced essays using UEL’s standard Harvard referencing system from Cite Them Right. Cite them Right is the standard Harvard referencing style at UEL for all Schools apart from the School of Psychology which uses the APA system. This book will teach you all you need to know about Harvard referencing, plagiarism and collusion.  The electronic version of “Cite Them Right: the essential referencing guide” 9th edition, can be accessed whilst on or off campus, via UEL Direct. The book can only be read online and no part of it can be printed nor downloaded.

 

Further information is available at:

https://uelac.sharepoint.com/LibraryandLearningServices/Pages/default.aspx

 

1. Details of submission procedures:

Notice is hereby given that all submissions for this component must be submitted to Turnitin.”  If you fail to submit component to Turnitin, in accordance with the guidance provided on the Virtual Learning Environment (Moodle), a mark of 0 will be awarded for the component.

 

Submitting Assessments Using Turnitin:

Turnitin is required for coursework assessments, such as report/research papers or projects in Microsoft Word, PowerPoint, and in PDF format.  There are two main reasons we want you to use Turnitin:

• Turnitin can help you avoid academic breaches and plagiarism. When you use Turnitin before a submission deadline, you can use the Originality Report feature to compare your work to thousands of other sources (like websites, Wikipedia, and even other student papers).  Anything in your work that identically matches another source is highlighted for you to see.  When you use this feature before the deadline, you will have time to revise your work to avoid an instance of academic breach/plagiarism.
• Turnitin saves paper. When using Turnitin to electronically submit your work, you will almost never have to submit a paper copy.

 

Late Submissions Using Turnitin

UEL has permitted students to be able to submit their coursework up to 24 hours after the deadline.  Assessments that are submitted up to 24 hours late are still marked, but with a 5% deduction.  However, you have to be very careful when you are submitting your assessment.  If you submit your work twice, once using the original deadline link and then again using the late submission link on Turnitin, your assignment will be graded as late with the 5% deduction.

 

Turnitin System Failure

Best Advice: Don’t wait until the last minute to submit your assessments electronically.  If you experience a problem submitting your work with Turnitin, you should notify your lecturer/tutor by email immediately.  However, deadlines are not extended unless there is a significant systems problem with Turnitin.  UEL has specific plans in place to address these issues.  If UEL finds that the issue with the system was significant, you will receive an email notifying you of the issue and that you have been given a 24-hour extension.  If you don’t receive any email that specifically states you have been given an extension, then the original deadline has not been changed. 

 

1. Feedback and return of work:

Work should be submitted on Turnitin and all feedback will be on Turnitin. This will be released to students on TBC.

 

You may submit formative work to your seminar tutor by TBC. Generic feedback will be given to the whole class.

 

 

 

Assessment criteria

Knowledge and Understanding (25%)
Up to 40%	The Report is written with little or no reference to any theoretical underpinning.
40% – 50%	Evidence of some use of underpinning theory, but its use is limited and there are clear gaps of conceptual understanding in its application.
50% – 60%	Theory is used to inform decisions and to justify them in a clear and logical manner.  Systematic understanding of the discipline is evidenced through the implementation plan and risk register.
60-70%	The Report makes effective use of a wide range of theory and underlying concepts to provide a well judged and practical implementation plan evidencing a good understanding of the discipline.
70% plus	Precise and well judged choice of theory and literature to inform an excellent proposal that synthesizes the practical and theoretical elements to produce a well judged proposal that incorporates a wide range of issues and concepts.
Independent Research and Learning (25%)
Up to 40%	There is no evidence of independent research or of making use of the independent learning resources
40% – 50%	There is evidence of some independent resources being used but of a limited value and number.
50% – 60%	Relevant independent resources have been identified and incorporated to build the depth and breadth of the proposal.
60-70%	A significant range of independent resources from the forefront of the discipline is introduced into the proposal to significantly raise its impact and to ground it effectively.
70%+	An extensive range of independent resources if high quality is synthesized for inclusion to lend the proposal an academic weight that lends significant authority.
Persuasive, consistent argument (20%)
Up to 40%	No real structure to the argument
40% – 50%	The report follows the prescribed structure in parts only.
50% – 60%	The report l follows the prescribed structure and builds a clear, rational and well constructed argument.
60-70%	The report is highly effective in its construction and through the use of argument convinces the reader of its conclusions and recommendations.
70% +	Various strands of argument are synthesised to provide a compelling, grounded argument.
Criticality. (25%)
Up to 40%	All sources are accepted at face value.
40% – 50%	There is evidence of some limited criticality and analysis of events and facts, though it lacks depth.
50% – 60%	A broadly critical approach to uncover underlying factors is used in the analysis to inform proposed recommendations and their implementation
60-70%	A strong criticality informs all elements of the proposal, including the risk register through multiple perspectives and critical analysis.
70% +	A highly analytical criticality underscores the proposal to synthesise multiple perspectives in a rigorously analytical proposal.
Presentation (5%)
Up to 40%	Poor presentation Poor references which do not follow the correct Harvard conventions and / or insufficient references Serious errors in the use of language which makes the meaning unclear or imprecise
40% – 50%	Presentation is somewhat untidy References contain inconsistencies, errors or omissions There are errors in the use of academic English which affect the clarity
50% – 60%	Professional presentation standard References follow correct conventions with one or two minor errors. Language is clear and easily understood, sufficient for complex arguments.
60-70%	Highly professional presentation full and appropriate references. Clear and precise use of language allowing a complex argument to be easily understood and followed
70% +	Outstanding presentation Precise, full and appropriate references. Subtle use of language expressing highly nuanced thought with clarity and precision to a level appropriate for a submission for publication.

 

 

 

PRESENT VALUE TABLE

Present value of £1

 

Periods (n)					Interest rates (r)
	1%	2%	3%	4%	5%	6%	7%	8%	9%	10%
1	0.990	0.980	0.971	0.962	0.952	0.943	0.935	0.926	0.917	0.909
2	0.980	0.961	0.943	0.925	0.907	0.890	0.873	0.857	0.842	0.826
3	0.971	0.942	0.915	0.889	0.864	0.840	0.816	0.794	0.772	0.751
4	0.961	0.924	0.888	0.855	0.823	0.792	0.763	0.735	0.708	0.683
5	0.951	0.906	0.863	0.822	0.784	0.747	0.713	0.681	0.650	0.621
6	0.942	0.888	0.837	0.790	0.746	0705	0.666	0.630	0.596	0.564
7	0.933	0.871	0.813	0.760	0.711	0.665	0.623	0.583	0.547	0.513
8	0.923	0.853	0.789	0.731	0.677	0.627	0.582	0.540	0.502	0.467
9	0.914	0.837	0.766	0.703	0.645	0.592	0.544	0.500	0.460	0.424
10	0.905	0.820	0.744	0.676	0.614	0.558	0.508	0.463	0.422	0.386
11	0.896	0.804	0.722	0.650	0.585	0.527	0.475	0.429	0.388	0.350
12	0.887	0.788	0.701	0.625	0.557	0.497	0.444	0.397	0.356	0.319
13	0.879	0.773	0.681	0.601	0.530	0.469	0.415	0.368	0.326	0.290
14	0.870	0.758	0.661	0.577	0.505	0.442	0.388	0.340	0.299	0.263
15	0.861	0.743	0.642	0.555	0.481	0.417	0.362	0.315	0.275	0.239
16	0.853	0.728	0.623	0.534	0.458	0.394	0.339	0.292	0.252	0.218
17	0.844	0.714	0.605	0.513	0.436	0.371	0.317	0.270	0.231	0.198
18	0.836	0.700	0.587	0.494	0.416	0.350	0.296	0.250	0.212	0.180
19	0.828	0.686	0.570	0.475	0.396	0.331	0.277	0.232	0.194	0.164
20	0.820	0.673	0.554	0.456	0.377	0.312	0.258	0.215	0.178	0.149

 

Periods (n)					Interest rates (r)
	11%	12%	13%	14%	15%	16%	17%	18%	19%	20%
1	0.901	0.893	0.885	0.877	0.870	0.862	0.855	0.847	0.840	0.833
2	0.812	0.797	0.783	0.769	0.756	0.743	0.731	0.718	0.706	0.694
3	0.731	0.712	0.693	0.675	0.658	0.641	0.624	0.609	0.593	0.579
4	0.659	0.636	0.613	0.592	0.572	0.552	0.534	0.516	0.499	0.482
5	0.593	0.567	0.543	0.519	0.497	0.476	0.456	0.437	0.419	0.402
6	0.535	0.507	0.480	0.456	0.432	0.410	0.390	0.370	0.352	0.335
7	0.482	0.452	0.425	0.400	0.376	0.354	0.333	0.314	0.296	0.279
8	0.434	0.404	0.376	0.351	0.327	0.305	0.285	0.266	0.249	0.233
9	0.391	0.361	0.333	0.308	0.284	0.263	0.243	0.225	0.209	0.194
10	0.352	0.322	0.295	0.270	0.247	0.227	0.208	0.191	0.176	0.162
11	0.317	0.287	0.261	0.237	0.215	0.195	0.178	0.162	0.148	0.135
12	0.286	0.257	0.231	0.208	0.187	0.168	0.152	0.137	0.124	0.112
13	0.258	0.229	0.204	0.182	0.163	0.145	0.130	0.116	0.104	0.093
14	0.232	0.205	0.181	0.160	0.141	0.125	0.111	0.099	0.088	0.078
15	0.209	0.183	0.160	0.140	0.123	0.108	0.095	0.084	0.079	0.065
16	0.188	0.163	0.141	0.123	0.107	0.093	0.081	0.071	0.062	0.054
17	0.170	0.146	0.125	0.108	0.093	0.080	0.069	0.060	0.052	0.045
18	0.153	0.130	0.111	0.095	0.081	0.069	0.059	0.051	0.044	0.038
19	0.138	0.116	0.098	0.083	0.070	0.060	0.051	0.043	0.037	0.031
20	0.124	0.104	0.087	0.073	0.061	0.051	0.043	0.037	0.031	0.026

 

 

Cumulative present value of £1 per annum

 

Periods (n)					Interest rates (r)
	1%	2%	3%	4%	5%	6%	7%	8%	9%	10%
1	0.990	0.980	0.971	0.962	0.952	0.943	0.935	0.926	0.917	0.909
2	1.970	1.942	1.913	1.886	1.859	1.833	1.808	1.783	1.759	1.736
3	2.941	2.884	2.829	2.775	2.723	2.673	2.624	2.577	2.531	2.487
4	3.902	3.808	3.717	3.630	3.546	3.465	3.387	3.312	3.240	3.170
5	4.853	4.713	4.580	4.452	4.329	4.212	4.100	3.993	3.890	3.791
6	5.795	5.601	5.417	5.242	5.076	4.917	4.767	4.623	4.486	4.355
7	6.728	6.472	6.230	6.002	5.786	5.582	5.389	5.206	5.033	4.868
8	7.652	7.325	7.020	6.733	6.463	6.210	5.971	5.747	5.535	5.335
9	8.566	8.162	7.786	7.435	7.108	6.802	6.515	6.247	5.995	5.759
10	9.471	8.983	8.530	8.111	7.722	7.360	7.024	6.710	6.418	6.145
11	10.368	9.787	9.253	8.760	8.306	7.887	7.499	7.139	6.805	6.495
12	11.255	10.575	9.954	9.385	8.863	8.384	7.943	7.536	7.161	6.814
13	12.134	11.348	10.635	9.986	9.394	8.853	8.358	7.904	7.487	7.103
14	13.004	12.106	11.296	10.563	9.899	9.295	8.745	8.244	7.786	7.367
15	13.865	12.849	11.938	11.118	10.380	9.712	9.108	8.559	8.061	7.606
16	14.718	13.578	12.561	11.652	10.838	10.106	9.447	8.851	8.313	7.824
17	15.562	14.292	13.166	12.166	11.274	10.477	9.763	9.122	8.544	8.022
18	16.398	14.992	13.754	12.659	11.690	10.828	10.059	9.372	8.756	8.201
19	17.226	15.679	14.324	13.134	12.085	11.158	10.336	9.604	8.950	8.365
20	18.046	16.351	14.878	13.590	12.462	11.470	10.594	9.818	9.129	8.514

 

Periods (n)					Interest rates (r)
	11%	12%	13%	14%	15%	16%	17%	18%	19%	20%
1	0.901	0.893	0.885	0.877	0.870	0.862	0.855	0.847	0.840	0.833
2	1.713	1.690	1.668	1.647	1.626	1.605	1.585	1.566	1.547	1.528
3	2.444	2.402	2.361	2.322	2.283	2.246	2.210	2.174	2.140	2.106
4	3.102	3.037	2.974	2.914	2.855	2.798	2.743	2.690	2.639	2.589
5	3.696	3.605	3.517	3.433	3.352	3.274	3.199	3.127	3.058	2.991
6	4.231	4.111	3.998	3.889	3.784	3.685	3.589	3.498	3.410	3.326
7	4.712	4.564	4.423	4.288	4.160	4.039	3.922	3.812	3.706	3.605
8	5.146	4.968	4.799	4.639	4.487	4.344	4.207	4.078	3.954	3.837
9	5.537	5.328	5.132	4.946	4.772	4.607	4.451	4.303	4.163	4.031
10	5.889	5.650	5.426	5.216	5.019	4.833	4.659	4.494	4.339	4.192
11	6.207	5.938	5.687	5.453	5.234	5.029	4.836	4.656	4.486	4.327
12	6.492	6.194	5.918	5.660	5.421	5.197	4.988	7.793	4.611	4.439
13	6.750	6.424	6.122	5.842	5.583	5.342	5.118	4.910	4.715	4.533
14	6.982	6.628	6.302	6.002	5.724	5.468	5.229	5.008	4.802	4.611
15	7.191	6.811	6.462	6.142	5.847	5.575	5.324	5.092	4.876	4.675
16	7.379	6.974	6.604	6.265	5.954	5.668	5.405	5.162	4.938	4.730
17	7.549	7.120	6.729	6.373	6.047	5.749	5.475	5.222	4.990	4.775
18	7.702	7.250	6.840	6.467	6.128	5.818	5.534	5.273	5.033	4.812
19	7.839	7.366	6.938	6.550	6.198	5.877	5.584	5.316	5.070	4.843
20	7.963	7.469	7.025	6.623	6.259	5.929	5.628	5.353	5.101	4.870