ACC212 - Managerial Accounting Excel Project - Cost Volume Profit Case Study The Gerald Company is a small manufacturing business that produces and sells wooden furniture. The company has been in operation for five years and is looking to expand their product line. The CEO has asked the accounting department to prepare a cost-volume-profit analysis to determine the break-even point for the new product line. Your task is to create a cost-volume-profit (CVP) analysis in Excel for Gerald Company. The variable cost per unit is $50, the fixed costs are $100,000 and the sales price per unit is $100. Create an Excel worksheet to create a CVP analysis. Make sure to write out all formulas and show your work. Your analysis should include the following: 1. Calculate the contribution margin per unit. (5 Points) 2. Calculate the contribution margin ratio. (5 Points) 3. 4. Calculate the break-even point in units and dollars. (15 Points) If management desires a target profit of $125,000, calculate the sales dollars and the number of units to be sold to achieve the target profit. (15 Points) 5. If the variable cost per unit increases to $60 per unit, calculate the break-even point in units and dollars and the sales dollars and the number of units to be sold to achieve the target profit of $125,000. (15 Points) 6. If instead, the fixed costs increase to $110,000 per unit (and the variable costs remain at $50 per unit), calculate the break-even point in units and dollars and the sales dollars and the number of units to be sold to achieve the target profit of $125,000. (15 Points) Grading Rubric: Excel Worksheet: (20 points) 1. Proper use of formulas and formatting. Make sure that you use excel formulas, do not do manual calculations and insert your final answer in the worksheet. (10 points) 2. Worksheet is easy to read and understand (10 points) Presentation: (10 points) 1. Proper use of grammar and spelling (5 points) 2. Professional presentation (5 points)

The Gerald Company is a small manufacturing business that produces and selis wooden furniture. The company has been in operation for five years and is looking to expand their product line. The CEO has asked the accounting department to prepare a cost-volume-profit analysis to determine the break-even point for the new product line. Your task is to create a cost-volume-profit (CVP) analysis in Excel for Gerald Company. The variable cost. per unit is $50, the fixed costs are $100,000 and the sales price per unit is $100. Create an Excel worksheet to create a CVP analysis. Make sure to write out all formulas and show your work. Your analysis should include the following 1. Calculate the contribution margin per unit. (5 Points) 2. Calculate the contribution margin ratio. (5 Points) 3. Calculate the break-even point in units and dollars. (15 Points) 4. If management desires a target proft of $125,000, calculate the sales dollars and the number of units to be sold to achieve the target profit. (15 Points) 5. If the variable cost per unit increases to $60 per unit, calculate the break-even point in units and dollars and the sales dollars and the number of units to be sold to achieve the target proft of $125,000. (15 Points) 6. If instead, the foxed costs increase to $110,000 per unit (and the variable costs remain at $50 per unit), calculate the break-even point in units and dolars and the sales dollars and the number of units to be sold to achieve the target profit of $125,000. (15 Points) Grading Rubric