Question

PLEASE help! the paper are the instructions to fill in the boxes in the excel sheet

eating a multiproduct profitability fthis project is to give the effects of changing business conditions on the The purposes can be used to deters will be to use Excel such a way that any changes to the Excel CVP Modeling project The purpose of this project is to give you experience creating a mi analysis that can be used to determine the effects of changing bus client's financial position. Your goal will be to use Excel in such a wa assumptions will correctly ripple through the entire profitability anal lover, decided to start selling unique pet Business Description After taking business classes, Jake, an avid dog-lover, decided to supplies at trade shows. He has two products: Product 1: "Throw-it" a tennis ball thrower that will sell for $15. Product 2: "Treat-It is"- an automatic treat dispenser that releases a tri his paw on the pedal. The treat dispenser will sell for $40. + disnenser that releases a treat when the dog plares Costs: Jake has hired an employee to work the trade show booths. The work contract is 1 per month salary plus a commission equal to 10% of sales revenue. Jake will also spend an per month on trade-show entry fees. Jake is purchasing the products from a supplier in China Throw-It cost $2.50 each; Treat-It Is cost $11 each. Shipping and handling on the Throw.its will cost $6 each; Shipping and handling on the Treat-It-Is, which are heavier, will cost $9 each. The shipping and handling costs will be paid by Jake, not the customer. Assume Jake expects to sell 600 Throw-Its and 200 Treat-It-Is during his first month of operations (June) Jake's financial goal is to earn a net operating income of $6,820 per month. He believes volume may grow at a rate of 6% a month. Directions You have been hired by Jake to build a CVP model that will help him understand the impact of business conditions on his operating income. (See "Starting File" worksheet). In your model, all of the original assumptions will be listed in one area of the spreadsheet (green box). All other calculations in the model will reference the assumptions green such that if any assumption changes, the effect will ripple through the entire me accomplish this goal, you will use FORMULAS, rather than numbers, in every other worksheet. In other words, the only place you will type numbers is the green as box. bers is the green assumptions FIRST TASK: Rename your Excel spreadsheet to your full name the "decrease decimals" button on your FORMATTING conventions to use throughout project: Round all UNITS to the nearest whole unit. Use the decrease decimals bar rather than the Rounding function Chow all MONETARY amounts as dollars and cents Round to the neares the "decrease decimals" button rather than the Rounding function. Show all percentages as y, not as decimals. (x%. not.xx) Right justify all cells (numbers should be to the right side of the cell, not in Round to the nearest cent. (Sx.xx). Use de of the cell. not in the middle or left)

Answer 1

Below is the result after inserting data. I am also providing excel formula for the same as well after the answer :

Assumptions
Product#1	Throw-It
Sales Price per Unit	15.00
Variable Cost Per Unit
Procurement cost from China	2.50
Shipping Cost	6.00
Sales Commission	1.50
Total Variable cost per unit	10.00
Monthly volume	600.00
Product#2	Treat-it is
Sales Price per Unit	40.00
Variable Cost Per Unit	24.00
Procurement cost from China	11.00
Shipping Cost	9.00
Sales Commission	4.00
Total Variable cost per unit	24.00
Monthly volume	200.00
Fixed Cost per month
Trade Show Entry Fee	800.00
Sales Staff Cost	1,680.00
Total Fixed cost per Month	2,480.00
Expected Change in Volume (%)	6%

Prdouct#1	Throw-It
Unit CM	5.00
CM%	33.33%
Breakeven Point
in Units	496.00
In Sales Revenue	7,440.00
Target Profit Volume
in Units	1,860.00
In Sales Revenue	27,900.00
Prdouct#2	Treat-it is
Unit CM	16.00
CM%	40.00%
Breakeven Point
in Units	155.00
In Sales Revenue	6200.00
Target Profit Volume
in Units	581.25
In Sales Revenue	23250.00

Consolidated Margin Income Statement
for the month ending June 30
	Product#1	Product#2	Total
Selling Price	15.00	40.00	55.00
Contribution per unit	5.00	16.00	21.00
Product Volume	600.00	200.00	800.00
Total Revenue	9,000.00	8,000.00	17,000.00
Total Contribution	3,000.00	3,200.00	6,200.00
Fixed Cost			2,480.00
Operating Profit			3,720.00
WACM% (Total Contribution / Total Revenue)			36.47%

Calculation of Weighted average CM per unit
	Product#1	Product#2	Total
Contribution	5.00	16.00	21.00
Product Volume	600.00	200.00	800.00
Total Contribution	3,000.00	3,200.00	6,200.00
WACM/Unit			7.75

Calculation of Break Even Point	Product#1	Product#2	Total
in Units	240.00	80.00	320.00
In Sales Revenue	3,600.00	3,200.00	6,800.00

Calculation to achieve Target profit
	Product#1	Product#2	Total
Number of Units required	900.00	300.00	1,200.00
Sale revenue	13,500.00	12,000.00	25,500.00

Margin of Safety in $	18,700.00
Margin of Safety %	73.33%
Degree of operating leverage	1.67
Expected % change in operating income (%)	10%

Excel Formulas :

Assumptions
Prdouct#1	Throw-It
Sales Price per Unit	15
Variable Cost Per Unit
Procurement cost from China	2.5
Shipping Cost	6
Sales Commission	=B47*10%
Total Variable cost per unit	=SUM(B49:B51)
Monthly volume	600
Prdouct#2	Treat-it is
Sales Price per Unit	40
Variable Cost Per Unit	=11+9+B57*10%
Procurement cost from China	11
Shipping Cost	9
Sales Commission	=B57*10%
Total Variable cost per unit	=SUM(B59:B61)
Monthly volume	200
Fixed Cost per month
Trade Show Entry Fee	800
Sales Staff Cost	1680
Total Fixed cost per Month	=SUM(B68:B70)
Expected Change in Volume (%)	0.06

The table starts from A45:B73

Prdouct#1	Throw-It
Unit CM	=B47-B52
CM%	=F47/B47
Breakeven Point
in Units	=B71/F47
In Sales Revenue	=F50*B47
Target Profit Volume
in Units	=(6820+B71)/F47
In Sales Revenue	=F54*B47
Prdouct#2	Treat-it is
Unit CM	=B57-B63
CM%	=F58/B57
Breakeven Point
in Units	=B71/F58
In Sales Revenue	=F61*B57
Target Profit Volume
in Units	=(6820+B71)/F58
In Sales Revenue	=F65*B57

The table starts from E46:F66

Consolidated Margin Income Statement
for the month ending June 30
	Product#1	Product#2	Total
Selling Price	=B47	=B57	=SUM(J47:K47)
Contribution per unit	=F47	=F58	=SUM(J48:K48)
Product Volume	=B53	=B65	=SUM(J49:K49)
Total Revenue	=J47*J49	=K47*K49	=SUM(J50:K50)
Total Contribution	=J48*J49	=K48*K49	=SUM(J51:K51)
Fixed Cost			=B71
Operating Profit			=L51-L52
WACM% (Total Contribution / Total Revenue)			=L51/L50

The table starts from I44 :L55

Calculation of Weighted average CM per unit
	Product#1	Product#2	Total
Contribution	=F47	=F58	=SUM(J58:K58)
Product Volume	=B53	=B65	=SUM(J59:K59)
Total Contribution	=J58*J59	=K58*K59	=SUM(J60:K60)
WACM/Unit			=L60/L59

Calculation of Break Even Point	Product#1	Product#2	Total
in Units	=L66/L59*J59	=L66/L59*K59	=B71/L62
In Sales Revenue	=J66*B47	=K66*B57	=SUM(J67:K67)

Calculation to achieve Target profit
	Product#1	Product#2	Total
Number of Units required	=L72/L59*J59	=L72/L59*K59	=(6820+B71)/L62
Sale revenue	=J72*B47	=K72*B57	=SUM(J73:K73)

Margin of Safety in $	=L73-L67
Margin of Safety %	=J79/L73
Degree of operating leverage	=L51/L53
Expected % change in operating income (%)	=J83*B73