1 P3_milestone_Hollis_Calculation_November 7, 2021 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View Acrobat "+ Share Calibri (Body) * 11 A- A- Insert Wrap Text General AP . Q . 19 Delete Paste Merge & Center $ ~ % 2 08 $8 Conditional Format Cell Sort & Find & Create and Share Formatting as Table Styles i Format Filter Select Adobe PDF D17 4 x v fx C D E F G H K L M N 0 Largo Global Production and Cost Information 2020 Product Type Standard Loot Box Deluxe Loot Box Volume (Number of Products 80 20 100 Selling Price Per Unit 18.20 $ 27.85 20.13 Total Sales 1,456.00 $ 557.00 2,013.00 Cost of Sales 1,400.00 Selling and Admin Charges 125 Depreciation 174 Purchases 1406 Gross Profit 573 1 Determine Purchases 2020 Cost of Sale 1400 1400 16 Plus: Closing Inventory 404 404 18 Less: Opening Inventory 398 398 Purchases 1,406.00 |$ 2 Use traditional Allocation Method to Allocate Cost Allocated Cost Total Costs Standard Loot Box Deluxe Loot Box Split Purchases 1,406.00 |$ 1,124.80 281.2 Based on volumes solo 26 Selling and General Admin 125.00 5 2.50 $ 62.50 Halfhalf Depreciation 174.00 87 87 Half half 28 Total Cost of Products 1,705.00 5 1,274.30 $ 430.70 Number of Products 100 80 20 30 Cost per Product S 17.05 $ 15.93|$ 21.54 Total Cost of Prouducts / Number of Products 31 33 3 Determine the Profit Margins per product 35 36 Standard Loot Box Deluxe Loot Box Total 37 Sales 1,456.00 $ 557.00 $ 2,013.00 38 Less: Cost of Products 1,274.30 $ 430.70 $ 1,705.00 39 Profit 181.70 s 126.30 $ 308.00 40 |%% Profit (Profit/ Sales) 12% 23% 41 Instructions Tab 1 Tab 2 Tab 3 Tab 4 + Ready + 100%1 P3_milestone_Hollis_Calculation_November 7, 2021 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View Acrobat "+ Share Calibri (Body) * 11 A- A- Insert Wrap Text Custom AP . Q . 19 x Delete Paste Merge & Center $ ~ % 2 08 0 Conditional Format Cell Sort & Find & Create and Share Formatting as Table Styles i Format Filter Select Adobe PDF D12 4 X V fx =D10/D11 B D E G H M N P Q R S T U V Additional Information: You learn that 30% of freight charges are included in the purchases figure and should be split equally among the two products. 40 % of the selling and administrative costs are due to administration. Perform a new calculation based on this new Information. W N 1 Allocated the costs based on this new information Allocated Cost Standard Loot Box Deluxe Loot Box Total Purchases S 787.36 $ 196.84 $ 984.20 Freight charge 210.90 $210.90 $ 121.80 Selling Costs 37.50 |$ 37.50 $ 75.00 General Admin Costs 25.00 $ 25.00 $ 50.00 Depreciation 87.00 $ 87.00 5 174.00 Total Costs of Products 1,147.76 $ $57.24 5 1,705.00 Number of Products 80 20 100 Cost per Product S 14.35 $ 27.86 _ $ 17.05 2 Determine the Profit Margins per product based on the allocations above 16 Standard Loot Box Deluxe Loot Box 18 Sales 1,456.00 | $ 557.00 19 Less: Cost of Products 1,147.76 $ 557.24 Profit 308.24 $ (0.24) |% Profit (Profit/ Sales) 21% 0% Instructions Tab 1 Tab 2 Tab 3 Tab 4 + Ready + 100%1 P3_milestone_Hollis_Calculation_November 7, 2021 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View Acrobat "+ Share Calibri (Body) * 11 A- A- = Insert Wrap Text Percentage AP . Q . 19 Delete Paste Merge & Center $ % 2 08 0 Conditional Format Cell Sort & Find & Create and Share Formatting as Table Styles Format Filter Select Adobe PDF D20 X V fx =D19/D17 A D F G H K L M N 0 P Q 1. Use the information from Tab 2 Part 1 under the total colum to fill in the figures under under the Amount Colum ( Column B) WN Manufacturing Sum of the Cost Cost of Standard Loot Cost of Deluxe Loot overhead $ Amount Cost driver Standard Loot Box Deluxe Loot Box Check Drivers Box Box Purchases $984.20 Number of units purchased 80 20 100 787.36 $ 196.84 $ 984.20 6 Freight charges $421.80 Kilometers travelled 1,000 4,000 5,000 $ 84.36 S 337.44 | $ 421.80 Selling Costs $75 Number of sales orders b 10 30.00 $ 15.00 $75 Admin instrative $50 Number of employees 3 5 20.00 | $ 30.00 $50 Costs 10 Depreciation $174.00 Square Feet 2000 1000 3000 S 116.00 S 58.00 $174.00 Total Allocated $1,70 S 1,037.72 667.28 $ 1,705.00 11 costs $ Allocated cost per 17.05 Number of Units sold 80 20 100 12.97 $ 33.36 17.05 12 unit 13 14 2. Use ABC costing determined in 1 above to calculate the profit and profit margins of the two products 15 16 Standard Loot Box Deluxe Loot Box Total 17 Sales 1,456.00 $ 557.00 $ 2,013.00 18 Less: Costs 1,037.72 5 667.28 $ ,705.00 19 Net (profit /loss) 418.28 -5 110.28 $ 308.00 20 Profit margin 29% -20% 15% 21 22 Instructions Tab 1 Tab 2 Tab 3 Tab 4 + Ready + 100%1 P3_milestone_Hollis_Calculation_November 7, 2021 Q . Search Sheet Home Insert Draw Page Layout Formulas Data Review View Acrobat "+ Share Calibri (Body) + 11 Insert A- A Wrap Text General AP . Q . 19 Delete Paste BIUTY A Merge & Center $ ~ % 2 08 $20 Conditional Format Cell Sort & Find & Create and Share Formatting as Table Styles Format Filter Select Adobe PDF E21 4 X V fx D E F G H K L M N 0 P Q R S T U V w X 1 Assume the Deluxe Product can be sold at the same profit margin as the Standard Product ( See Tab 3). Calculate the New Selling Price for the Deluxe Product ? Allocated CPU 33.36 Profit margin as % 29% New Selling Price 46.81 10 2 Provide a Proof For your Claculation: Total $ Total 46.81 13 Less Costs 33.36 14 Profit 13.45 15 16 Calculate the New Breakeven Point in Volume based on the new Selling Price you determined above. You can 17 3 assume that only the Purcahses costs are Variable, all other costs are fixed. 18 $ 19 Sales Price / unit 46.81 20 Variable Costs /uni 9.84 Marginal Cost / unit 22 Fixed Costs S 470.44 23 Break Even 12.73 24 26 28 Instructions Tab 1 Tab 2 Tab 3 Tab 4 + Ready + 100%