Hello, I need calculations to the problems. I need for you to include the dollar amount for these problems and calculate the problems, not just written explanations, I still do not understand, please help.

Hello, the case scenario with figures is below.

ACC 311 Project One Scenario

Lorenzo, the owner of a local poster shop, comes to you for help. While his shop has been breaking even for the past two years, it has not been able to generate a profit. For him to keep the shop open, he needs to earn at least $12,000 in operating income next year.

You agree to help Lorenzo and ask him for some current information about his products selling price and costs. You tell him you will work through some possible scenarios that might involve changing his sales price to generate the number of units sold needed to reach his target profit.

Lorenzo shares the following information with you as you ponder different scenarios to help your client.

Selling price$7.50Cost for paper, per unit$0.70Cost for printing, per unit$1.10Cost for film, per unit$0.60Staff salaries$48,000.00Other operating costs$12,120.00

Using Lorenzos data and proper Excel formulas, first, plan to get an understanding of Lorenzos financial situation based on breakeven. Then look at the following five pricing scenarios:

1. Lower the selling price by 10% to increase sales volume by 5%.
2. Advertise on radio and social media for a combined cost of $1,000 to increase volume by 10%.
3. Use a more affordable paper on which to print the posters (available for $0.60 per unit), in combination with a less-expensive film to coat the surface of the poster (available for $0.40 per unit).
4. Instead of paying the salespeople a fixed salary, move to a commission-based compensation plan (save $20,000 in salary; incur $1.50 per unit sold commission), which should increase sales volume by 20%.
5. Advertise on radio and social media for a combined cost of $1,000 and, instead of paying salespeople a fixed salary, move to a commission-based compensation plan (save $20,000 in salary; incur $1.50 per unit sold commission), which could increase sales volume by 25%.

A few days later, Lorenzo calls back and says he realizes he didnt take into account any tax consequences. He lets you know that he estimates his tax rate to be about 25% and asks if you could please factor that into the various options. He is open to raising the price of his posters if you think that is a viable option.

He also lets you know that hes been approached by a potential client inquiring about a special order, and he wants you to advise him on whether to accept the order. The client wants 500 custom posters for $7 per poster. The posters will require a different type of paper that will cost $0.10 more per poster. The order will also require Lorenzo to pay an extra $1000 in employee costs.

Per Lorenzos request, you also decide to see what effect a price increase might have on Lorenzos position. You have noticed that Lorenzos is one of the only poster shops in the area, and customers may be willing to pay more, and a higher price may even signal higher quality. Though, there are no guarantees that the market will accept the price increase. Lorenzo is looking at increasing the sales price to $9.25.

You let Lorenzo know that you will do an analysis of all options and present your recommendations when you are done.

To help Lorenzo with his poster shop, we need to perform a financial analysis for each of the five pricing scenarios, taking into account the tax consequences. We'll also analyze the potential special order and the effect of a price increase. Below are the step-by-step instructions for the analysis:

Step 1: Calculate the Current Breakeven Point The first step is to determine the shop's current breakeven point, which is the level of sales at which total costs equal total revenue (neither profit nor loss). The breakeven point can be calculated using the following formula:

Breakeven Sales (in units) = Fixed Costs / (Selling Price per Unit - Variable Costs per Unit)

Fixed Costs = Staff salaries + Other operating costs Variable Costs per Unit = Cost for paper per unit + Cost for printing per unit + Cost for film per unit

Step 2: Analyze the Five Pricing Scenarios Now, we'll analyze each of the five pricing scenarios and calculate the impact on profit, taking into account the tax rate:

Scenario 1: Lower the selling price by 10% to increase sales volume by 5%.

• Calculate the new selling price and the new sales volume.
• Calculate total revenue, total variable costs, total fixed costs, operating income, and net income after taxes.

Scenario 2: Advertise on radio and social media for a combined cost of $1,000 to increase volume by 10%.

• Calculate the new sales volume.
• Calculate total revenue, total variable costs, total fixed costs (including advertising costs), operating income, and net income after taxes.

Scenario 3: Use more affordable paper and film to reduce variable costs.

• Calculate the new variable costs per unit.
• Recalculate the breakeven point, total revenue, total variable costs, total fixed costs, operating income, and net income after taxes.

Scenario 4: Move to a commission-based compensation plan for salespeople.

• Calculate the new commission cost per unit.
• Recalculate the breakeven point, total revenue, total variable costs, total fixed costs, operating income, and net income after taxes.

Scenario 5: Combine advertising and commission-based compensation plan.

• Calculate the new commission cost per unit and sales volume.
• Calculate total revenue, total variable costs, total fixed costs (including advertising costs), operating income, and net income after taxes.

Step 3: Evaluate the Special Order Analyze the potential special order for 500 custom posters at $7 per poster.

• Calculate the new variable costs per unit (considering the different type of paper).
• Calculate total revenue, total variable costs, total fixed costs (including extra employee costs), operating income, and net income after taxes.

Step 4: Evaluate the Effect of a Price Increase Analyze the effect of increasing the selling price to $9.25.

• Calculate total revenue, total variable costs, total fixed costs, operating income, and net income after taxes.

Step 5: Present Recommendations

Based on the analysis of all options, summarize the findings for each scenario and provide Lorenzo with your recommendations on which scenarios he should consider implementing.

Explanation:

Remember to factor in the 25% tax rate in all calculations and consider the potential risks and uncertainties associated with each scenario before making final recommendations.

AutoSave ACC 311 Project One Workbook Template (3) Search Newsome, Debra ND File Home Insert Page Layout Formulas Data Review View Automate Help Comments Share J35 Lorenzo's Data 1 Breakeven 2A, B Scenarios 2C After-Tax 3 Price Increase 4 Spe Ready Accessibility: Investigate 1+100% AutoSave OH ACC 311 Project One Workbook Template (3) -... Search Newsome, Debra ND File Home Insert Page Layout Formulas Data Review View Automate Help Comments fx AB27 Lorenzo's Data 1 Breakeven 2A, B Scenarios 2C After-Tax 3 Price Increase 4 Spe Ready Accessibility: Investigate