Case Study-Spending and Headcount Forecast

Review Investor Overview Links to an external site. and Quarterly Results Links to an external site.
Read Chapter 6: Operating Budgets from Using Accounting and Financial Information: Analyzing, Forecasting, and Decision-Making Links to an external site.
Watch Budgetary Control for Managers Links to an external site.
Watch (L029) Basic Budgeting Concepts – Leadership and Management Links to an external site.
You are playing the role of the divisional manager of the new e-bike division of Fox Factory Holding Corporation. The divisional manager is preparing to
request funding to introduce the product and begin sales. Three options have been identified (note that these are fictitious assumptions):
Produce the new e-bike internally,
Outsource manufacturing to another manufacturer, and
License the design to an existing company for royalties on future sales.
In your assignment,
Develop a three-year spending and headcount forecast in Excel for the next three years for the three potential options. Please do not forecast the current
year.
Explain the key issues and considerations for the forecast.
Note: Please use the most recent Quarterly Results Links to an external site. (Form 10-Q) published on the Fox Factory Investor Overview website. Please use
the earnings announcement, for example: “Fox Factory Holding Corp. Announces Third Quarter 20XX Financial Results” for the relevant required information.

 

Sample Solution 

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