Cost-Volume-Profit Analysis

The Oceanside Garden Nursery buys flowering plants in four inch pots for $2.00 each and sells them for $4.00 each. Management budgets monthly fixed costs of $2,800 for sales volumes between 0 and 9,500.

The Oceanside Garden Nursery buys flowering plants in four-inch pots for $2.00 each and sells them for $4.00 each, Managernent budgets monthly foxed costs of $2,800 for sales volumes between 0 and 9,500 plants. Use the blue shaded areas on the ENTERANSWEAS tab for inputs. Always use cell references and formulas where appropriate to recelve full credit. If you copy/paste from the lnstructions tab you will be marked wrone. Requirements: 1. Create a table to compute the revenue, variable costs, fixed costs, and total costs for each volume to use in creating your Braph. 2. Use the contribution margin approach to compute the company's monthly breakeven point in units. 3. Use the contribution margin ratio approach to compute the breakeven point in sales dollars. 4. Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income of $8,000. 5. Use the contribution margin approach to compute the monthly sales level (in units) required to increase the target operating income of $8,000 by 15% and increase advertising costs by $1,400. 6. Use the contribution margin approach to compute the margin of safety (in units) using the target operating income of $8,000 7. Use the high low method and the units and associated total costs from Requirement 3 if targeted operating income was $8,000 and the units and associated total costs if targeted operating income was $9,000 to develop the mixed cost formula for our flowering plants business. 8. Prepare a graph of the company's CVP relationships. Indude the sales revenue line, the fixed cost line, and the total cost lineby completing the table below. Create a chart title and tabel the axes. Gxcel 5kins: 1. Create formulas with cell references. 2. Format the cells as accounting number format or percent style. 3. Prepare a breakeven chart. Add chart title and x-axis description. Requirement-1 Use the contributon margin approach to compute the company's monthly breakeven in units. leference the cell(i) in the DATA table above when constructing your breakeven formula below. Do not use target profit in this calculation. Format as a number. (Always use cell references and focmulas where aparopriate to receive full credit. If you copy/paste from the instructions tab you will be marked wrong.) Areakeven in Uhits Requirement 2 Use the contribution margin ratio approach to compute the breakeven point in sales dollars: Reference the DATA celi(v) in your formula for contributon margin ratio below. Do hot use target profit in these calculations. format the ratio as a percentage and the breakeven in dollars as accounting number format in whole dollars (Ahways use cell references and formulas where appropriate so receive full credit. If you copy/paste from the instructions tab you will be marked Wrone) Use the contribution margin approach to compute the monthly sales ievel (in units) required to earn a target operating income of 58,000 . Reference the cell(s) in the DATA table above when constructing your target sales level formula below, Format as number, Use the Excel foUNDUP function to obtain whole units to reach the target operating income. (Ahwys use oell references and formulas where appropriate to receive full credit. If you copy/paste from the instructions tab you will be marked Wrong.) Target sales level (in units) Requitement 4 Use the contribution margin approach to compute the monthly sales level (in units) required to increate the target operating income of $8,000 by 15% and increase advertising costs by $1,400. Pieference the DATA celks) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Target sales level (in units) Requitrement 5 Uue the contribution margin appeoath to compute the markin of safety (in unita) using the target operating income of $8,000. Reference the DATA cerss) in your formula below. Format as number. Whe the Excel ADUNOUP function to obtain whole units to reach the margin of safety. Use the contribution margin approach to compute the margin of safety (in units) using the target operating income of $8,000. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the margin of safety Margin of Safety (in units) Requirement 6 Use the high low method and the units and assodated total costs from flequirement 3 if targeted operating income was $8,000 and the units and assocated total costs if targeted operating income was $9,000 to develop the miked cost formula for our flowering plants business