COST VOLUME PROFIT ANALYSIS

Evelyn has recently started her business as an event organizer and has 50th birth day party to plan for. Evelyn had not been given the exact number of guests that will be attending the party confirmed to her. Evelyn has to come to you, her friend, as you are working as an accounts assistant. She wants you to create a spreadsheet with formulas that will allow her to enter the number of guests and calculate how many cakes she needs to make, the cost she will incur and the total cost that she can quote to her potential clients. Evelyn client, Nombulelo is making enquiries about the cost of providing birthday cake for all her guests. Evelyn has been advised that it may be a party of 40 guests, 72 guests, 103 guests, 135 guests, 180 guests, 240 guests or even 300 guests. Evelyn has told you that each cake can feed up to 8 people and it costs her R70 to make each cake and ideally, she would like to sell each at cost plus a 45 per cent profit. 1. Produce a table based on the information provided about Nombulelo's guest numbers and calculate the number of cakes needed, the cost to make the cakes, the profit to be added and the final cost to be quoted to Nombulelo's. Hint: you can't have half of a cake.

2. Nombulelo's has approached Evelyn for another quote. She wants to include drinks with her cake order. Evelyn wants you to create a new table which is linked to the table from task 1. Evelyn can buy sparkling wine for R300 per bottle and this will fill 8 glasses. Wine will cost Evelyn R120 per day bottle and will fill 6 glasses.

NB. You will need to work out how many Bottles are needed based on the guests drinking one glass of sparkling wine each and three glass of wine each.