Cabinet Accessory Company

Sales, Cost, and Gross Profit Analysis

To complete this project has you will watch a tutorial illustrating the use of Excel to complete worksheets and pivot tables to organize the data. You will then apply those skills to a larger data set to complete the following requirements. You will submit your completed worksheets here and complete 2 assessments on this project

Learning Objectives

1. Find and correct errors in a data set (clean the data)
2. Add columns containing formulas to a data set
3. Create a pivot table in Excel
4. Create a pivot chart in Excel
5. Analyze sales data using a pivot table and a pivot chart
6. Create a calculated field in a pivot table
7. Sort a pivot table by stated criteria
8. Filter a pivot table
9. Interpret findings from a pivot table using segment margins and operating income

Data set background

This dataset represents the Sales and Cost Data for a fictitious company, Cabinet Accessory Company (CAC), covering the four-year period from 2014 to 2018.

CAC sells cabinet hardware including knobs and pulls. In the project, the student is asked to calculate break even from the data. The project also focuses on the calculation of contribution margin from a set of sales data and how that sales and cost data can be viewed from the perspective of the region, product line, etc.

NOTE:You should write out the answers to the questions after each of the requirements as they will be on your quiz and this will help you with that part of the Assignment.

You will also complete a Quiz that requires you to respond to specific details in the assignment

Requirements

1. Create three columns in the Data worksheet that calculates sales revenue, the variable cost, and contribution margin for each sales record (each row.) Use the columns already named in the Data worksheet sales revenue, variable cost, and contribution margin, respectively. Format numbers in the three columns as Accounting with two decimal places.
2. Create a pivot table that shows sales revenue by region for each of the four years and quarters. Correct any errors in the original dataset in the worksheet that is revealed in this initial pivot table. Once you have corrected the errors in the original data set, refresh the pivot table to reflect the corrected data. Insert a pivot chart that shows the sales revenue trend by region over the four-year period. In the pivot chart, the x-axis should be years and the y-axis should be sales revenue. What trends do you see in the pivot table and pivot chart?
3. Create a pivot table that shows sales revenue, variable cost, and contribution margin for each year for each region.
4. Create a pivot table to answer the question What was the most profitable brand in each year, as measured by contribution margin?
5. Create a pivot table to answer the questions: Within each brand, what was the most profitable collection in 2018, as measured by the contribution margin ratio? The least most profitable collection for each brand? Use the field years to filter the data to include just the year of 2018. You will need to add a calculated field to the pivot table to calculate the contribution margin ratio. Within each brand, sort the collections by contribution margin ratio, from the largest to the smallest. Interpret your findings. Are any collections unprofitable? Which one(s)?
6. Complete the worksheet named segment margin. You will calculate each regions segment margin and operating income for 2018. (Hint: Link to the totals in the pivot table you created for Requirement 3.) You will get the fixed costs for calculating the segment margins from the fixed cost data worksheet. Do you think any regions should be dropped or otherwise restructured? Explain.

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bullet 5

Years	2018
Row Labels	Sum of contribution margin	Sum of CMRatio
Elements	$ 9,438,793.06	34.59%
Jeffrey Alexander	$ 50,927,391.87	39.88%
Grand Total	$ 60,366,184.93	38.95%

bullet 6 info

Sum of sales revenue Column Labels Row Labels Central East coast International Midwest Northeast Northwest South West Grand Total 2015 $ 11,679,559.77 $ 16,949,605.38 $ 1,711,624.53 $ 13,357,475.39 $ 8,349,731.01 $ 10,596,444.14 $ 12,407,118.91 $ 15,913,286.60 $ 90,964,845.72 2016 $ 14,606,059.24 $ 18,708,537.73 $ 1,941,695.97 $ 19,171,333.17 $ 8,844,654.22 $ 12,509,891.75 $ 15,068,154.77 $ 21,005,119.68 $ 111,855,446.54 2017 $ 16,698,830.22 $ 23,905,475.81 $ 1,896,031.25 $ 23,693,664.65 $11,106,040.50 $ 13,222,831.87 $ 14,006,695.47 $ 22,741,783.62 $ 127,271,353.40 2018 $ 19,728,462.06 $ 25,720,079.45 $3,515,310.29 $ 32,648,044.24 $13,182,382.46 $ 17,394,702.40 $ 15,855,637.70 $ 26,940,359.91 $ 154,984,978.51 Grand Total $ 62,712,911.29 $ 85,283,698.36 $9,064,662.05 $ 88,870,517.44 $ 41,482,808.21 $53,723,870.17 $57,337,606.85 $ 86,600,549.81 $ 485,076,624.17 $35,000,000.00 $30,000,000.00 Central $ 25,000,000.00 East coast -International $20,000,000.00 Midwest $15,000,000.00 Northeast Northwest $10,000,000.00 South $5,000,000.00 West $- 2015 2016 2017 2018 Row Labels Elements Somerset Strickland Sum of contribution margin Sum of CM Ratio $ 9,438,793.06 34.59% $ 144,019.59 36.90% $ 229 127 81 36 87% Belfast Aiden $ $ 291,598.12 (194,128.28) 33.57% -196.39% Jeffrey Alexander I $ Hudson $ Key West $ Montclair $ Odessa $ 50,927,391.87 699,920.18 9,052.37 1,264,746.53 165,757.95 39.88% 42.82% 42.49% 42.03% 41.75% Evangeline Tahoe Rochester $ $ 115,710.00 861,614.46 (123,097.55) 37.66% 37.20% -116.82% Segment Margin Report For Year of 2018 Sales revenue Less variable expenses Contribution margin Less direct fixed expenses Segment margin Less common fixed costs allocated to regions Operating income (loss) Central $ 19,728,462 $ 12,526,495 $ $ 7,201,967 $ 5,278,312 $ 1,923,655 $ 1,219,464 $ 704,191 $ East coast International Midwest Northeast Northwest South West Total of all regions 25,720,079 $ 3,515,310 $ 32,648,044 $ 13,182,382 $ 17,394,702 $ 15,855,638 $ 26,940,360 $ 154,984,979 15,615,559 $ 2,139,543 $ 19,821,850 $ 8,020,092 $ 10,510,174 9,661,517 $ 16,323,564 $ 94,618,794 10,104,520 $ 1,375,768 $ 12,826,195 $ 5,162,290 $ 6,884,528 $ 6,194,121 $ 10,616,796 $ 60,366,185 7,513,545 690,587 9,874,330 3,965,187 4,968,774 6,849,541 9,065,478 48,205,754 2,590,975 $ 685,181 $ 2,951,865 $ 1,197,103 $ 1,915,754 $ (655,420) $ 1,551,318 $ 12,160,431 1,589,821 217,290 2,018,055 814,835 1,075,209 980,076 1,665,250 9,580,000 1,001,154 $ 467,891 $ 933,810 $ 382,268 $ 840,545 $ (1,635,496) $ (113,932) $ 2,580,431 Sum of sales revenue Column Labels Row Labels Central East coast International Midwest Northeast Northwest South West Grand Total 2015 $ 11,679,559.77 $ 16,949,605.38 $ 1,711,624.53 $ 13,357,475.39 $ 8,349,731.01 $ 10,596,444.14 $ 12,407,118.91 $ 15,913,286.60 $ 90,964,845.72 2016 $ 14,606,059.24 $ 18,708,537.73 $ 1,941,695.97 $ 19,171,333.17 $ 8,844,654.22 $ 12,509,891.75 $ 15,068,154.77 $ 21,005,119.68 $ 111,855,446.54 2017 $ 16,698,830.22 $ 23,905,475.81 $ 1,896,031.25 $ 23,693,664.65 $11,106,040.50 $ 13,222,831.87 $ 14,006,695.47 $ 22,741,783.62 $ 127,271,353.40 2018 $ 19,728,462.06 $ 25,720,079.45 $3,515,310.29 $ 32,648,044.24 $13,182,382.46 $ 17,394,702.40 $ 15,855,637.70 $ 26,940,359.91 $ 154,984,978.51 Grand Total $ 62,712,911.29 $ 85,283,698.36 $9,064,662.05 $ 88,870,517.44 $ 41,482,808.21 $53,723,870.17 $57,337,606.85 $ 86,600,549.81 $ 485,076,624.17 $35,000,000.00 $30,000,000.00 Central $ 25,000,000.00 East coast -International $20,000,000.00 Midwest $15,000,000.00 Northeast Northwest $10,000,000.00 South $5,000,000.00 West $- 2015 2016 2017 2018 Row Labels Elements Somerset Strickland Sum of contribution margin Sum of CM Ratio $ 9,438,793.06 34.59% $ 144,019.59 36.90% $ 229 127 81 36 87% Belfast Aiden $ $ 291,598.12 (194,128.28) 33.57% -196.39% Jeffrey Alexander I $ Hudson $ Key West $ Montclair $ Odessa $ 50,927,391.87 699,920.18 9,052.37 1,264,746.53 165,757.95 39.88% 42.82% 42.49% 42.03% 41.75% Evangeline Tahoe Rochester $ $ 115,710.00 861,614.46 (123,097.55) 37.66% 37.20% -116.82% Segment Margin Report For Year of 2018 Sales revenue Less variable expenses Contribution margin Less direct fixed expenses Segment margin Less common fixed costs allocated to regions Operating income (loss) Central $ 19,728,462 $ 12,526,495 $ $ 7,201,967 $ 5,278,312 $ 1,923,655 $ 1,219,464 $ 704,191 $ East coast International Midwest Northeast Northwest South West Total of all regions 25,720,079 $ 3,515,310 $ 32,648,044 $ 13,182,382 $ 17,394,702 $ 15,855,638 $ 26,940,360 $ 154,984,979 15,615,559 $ 2,139,543 $ 19,821,850 $ 8,020,092 $ 10,510,174 9,661,517 $ 16,323,564 $ 94,618,794 10,104,520 $ 1,375,768 $ 12,826,195 $ 5,162,290 $ 6,884,528 $ 6,194,121 $ 10,616,796 $ 60,366,185 7,513,545 690,587 9,874,330 3,965,187 4,968,774 6,849,541 9,065,478 48,205,754 2,590,975 $ 685,181 $ 2,951,865 $ 1,197,103 $ 1,915,754 $ (655,420) $ 1,551,318 $ 12,160,431 1,589,821 217,290 2,018,055 814,835 1,075,209 980,076 1,665,250 9,580,000 1,001,154 $ 467,891 $ 933,810 $ 382,268 $ 840,545 $ (1,635,496) $ (113,932) $ 2,580,431