Outline the pro and cons of renovating the family home versus leasing a location. Complete a differential analysis for these two alternatives.

1. Bake Me A Cake
a. Perform an internal and external analysis.
b. Analyse the company’s statement of cash flows for the year ended December 31, 2011.
c. Analyse the relevant financial ratios for Bake Me A Cake.
d. Outline the pro and cons of renovating the family home versus leasing a location. Complete a differential analysis for these two alternatives.
e. What are the advantages and disadvantages to increasing cupcake prices? Calculate the direct cost per cupcake? What would the contribution from cupcake sales be for t suggested price points?
f. Design an advertising plan for the next fiscal year.

Outline the pro and cons of renovating the family home versus leasing a location. Complete a differential analysis for these two alternatives.
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