Essay about Henri Boulangerie

Words: 5481
Pages: 22

Henri Boulangerie: Creating and Using a
Master Budget


Henri Boulangerie is a medium-sized regional bakery that specializes in providing orders to grocery and convenience stores. Because of the popularity of its brand, it has also opened a small café for walk-in business.
In order to maintain its high quality standard, Henri produces only three products: breakfast muffins, fresh bread, and chocolate chip cookies. Although business has been good in the past few years, a lucky contact with a large chain has recently allowed it to expand its brand out of the local region.
Growth has been high since the new contract went into effect. Andy Griff, the
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If we didn’t, they’d definitely go somewhere else.
So, we give our business customers a lot of leeway in paying us.
It makes it a little hard on us, but it keeps them loyal. Anyway, we collect 30 percent of the credit sales within the current quarter, 45 percent in the following quarter, and 25 percent in the quarter after that. The good news is that we don’t have any bad debt. Our customers are mostly large chains with strong sales and even better reputations. Since they are large companies, they take their time paying small companies like us, but we get the money from all of them in the end.”
“Then I have only two more questions. What were total sales during the third and fourth quarters of last year, and are we still collecting any of that money?”
Jeff pulled up a file. “Total sales were $802,000 and
$1,002,500, respectively, and we are still collecting quite a bit of that money based on our collection breakdown.”
“I think that does it, then. If I’ve forgotten something, I’ll come back and bug you later. It’s more fun to interrupt you several times anyway. And you owe me one now.”

can raise our prices slightly next year without a sharp drop in sales. He was thinking $6.00 for muffins, $5.25 for cookies, and
$5.75 for bread. What do you think?”
“I agree,” Jeff said eagerly. “I’ve been pushing that for years.
Of course, I think that sales will drop some in the first quarter of next year. They