Cake Shop Essay

2131 Words9 Pages
ACC1200 Basic Managerial Accounting Group Coursework Group member: Aimee, Beryl, Daisy, lion , kira Tutor’s name: Mark Ma Submit date: 17th April 2012 Content Abstract 3 Introduction 3 Analysis of fixed and variable costs 4 Fixed cost 4 Variable cost 5 CVP Analysis 6 Pricing strategy 9 Cost based pricing 9 Demand-oriented pricing 9 Prestige Pricing 10 Conclusion 11 Reference 12 Abstract This report researches the I-LOVE cake shop. After having done some investigations, we collected data about the I-LOVE cake shop. First of all, we evaluated the fixed and variable cost of I-LOVE cake shop, and used the Cost-Volume-Profit method to analyze. Then we made the price strategy which was based on the variable cost and cost based price, analyzed the price strategy of I-LOVE cake shop. Introduction Nowadays, the cake shops are increasing popular among the youngsters, and there are lots of brands for cake shops as well as the price have the significant difference. With the development of society rhythm speeding and the improvement of people's living standard, west dessert are more convenient, nutrition, delicious, and fashion that more people have accepted. Some people disclose the materials are used in cake that are harmful, and even be reported the cost of a cake is little but sell high. Therefore, we write a report to analysis the cost and price strategy of cake shop. I-LOVE cake shop is a brand from the I-LOVE cultural limited public company. I-LOVE is a franchisee the material uses in product that is given by company only,and for retail. I-LOVE is a very distinctive brand at west dessert, especially his craft. It combines Chinese and western process method to establish the professional baking team, and continue to develop new baking technology. Analysis of fixed and variable costs We classify the cost of cake shop based

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