Speak On

Instructions

Please read the case study attached (Speak On) and answer the below questions. follow the assignment guidelines mentioned below to answer the questions and write the assignment.Question 1Please assess which expenses among all those that Mr. Harsh Amari is considering for his future Speak-On activities and business plans can be attributed to the following categories:Variable CostsFixed CostOne-off CostsRecurrent CostsCosts Directly related to ProductsCosts Indirectly related to ProductsQuestion 2Please establish whether the figures relative to sales, costs and every other element presented in the case suggest that Mr. Amari will have sufficient financing in order to set up his business. Should he request more lines of credit from financial institutions or is the line of credit that Mr. Amari was able to get approved sufficient to fund his plans?Question 3 The case writeup presents a base-case scenario for Mr. Amari sales prospects, but it also discusses alternative scenarios. What if his sales will actually be higher than in his base-case scenario? What if they are lower? Please measure the effects of these opposite sale scenarios on Mr. Amaris financial needs. How would his cash needs modify and would it be sufficient the line of credit that Mr. Amari was able to get approved under these different scenarios?  What is it then going to happen if his costs modify? Take his base-case scenario for his projected sales and propose at least two realistic scenarios that correctly measure the effects of surging costs and diminishing costs on his financial needs. Question 4Now that you have addressed all three questions above, please provide your assessment of the strengths and the weaknesses of Mr. Amaris business idea on the basis of what emerges from you managerial accounting analyses:-    Is Speak-On highly exposed to sales oscillations or relatively safe with respect to them?-    If future sales materialize as Mr. Amari expects, will the business have high profitability margins?-    Should he go ahead and launch himself in this business and potentially invest even more in it, or is it better that he continues to study and renounces his entrepreneurial plans for now?Assignment guidelines as follow:1.The report shall clearly and effectively appraises the purpose and effectively addresses the assessment task in a direct and succinct manner.2. The  report shall analyses and investigates problems and issues presented.3. The report shall clearly relates to the taught, concepts and theoretical background. 4. The report shall proposes suitable  solutions and recommendations 5. The report demonstrates  clear, logical and sequential arrangement of paragraphs which enhance the readers understanding of the ideas.

Answer