I need help will calculating Tab 4 of this project. Use cost-volume-profit analysis to determine an alternative selling price for the deluxe Loot box. Calculate the breakeven point for the deluxe box based on your suggested selling price.
1 Assume the Deluxe Product can be sold at the same profit margin as the Standard Product ( Allocated CPU $ Profit margin as % New Selling Price S 2 Provide a Proof For your Claculation: Total $ Total Less Costs Profit Calculate the New Breakeven Point in Volume based on the new Selling Price you detertm 3 assume that only the Purcahses costs are Variable, all other costs are fixed. $ Sales Price / unit Variable Costs /unit Marginal Cost / unit Fixed Costs Break EvenLargo Global Production and Cost Information 2020 Product Type Standard Loot Box Deluxe Loot Box Volume (Number of Products) 80 20 100 Selling Price Per Unit 18.20 27.85 Total Sales 1,456.00 557.00 2,013.00 Cost of Sales 1180 220 1400 Selling and Admin Charges 62.5 62.5 125 Depreciation 87 87 174 Purchases 1124.8 281.2 1406 Gross Profit 336 277 613 1 Determine Purchases 2020 Cost of Sale 1400 Plus: Closing Inventory 404 Less: Opening Inventory 398 Purchases 1406 2 Use traditional Allocation Method to Allocate Cost Allocated Cost Total Costs Standard Loot Box Deluxe Loot Box Purchase 1,406.00 |$ 1,124.80 $ 281.20 Selling and General Admin 125 $ 62.50 62.5 Depreciation 174 $ 87.00 87 Total Cost of Products $ 1,705.00 $ 1,274.30 $ 430.70 Number of Products 100 80 20 Cost per Product $ 17.05 $ 15.93 $ 21.54 3 Determine the Profit Margins per product3 Determine the Prot Margins per product Standard Loot Box Deluxe Loot Box Less: Cost of Products % Prot (Prot/Sales) Additional Information: You learn that 30 % offreight charges areincluded in the purchases gure and shot Perform a new calculation based on this new Information. 1 Allocated the costs based on this new information Allocated Cost Standard Loot Box Deluxe Loot Box Freight charges Selling Costs 2 Determine the Prot Margins per product based on the allocations above Standard Loot Box Deluxe Loot Box Less Cost of Products % Prot (Prot/ Sales) 1. Use the information from Tab 2 Part 1 under the total colum to fill in the figures under under the Amount Colum ( Column B) Manufacturing Sum of the Cost $ Amount Cost driver Standard Loot Box Deluxe Loot Box overhead Drivers Purchases $984.20 Number of units purchased 80 20 100 Freight charges $421.80 Kilometers travelled 1,000 4,000 5,000 Selling Costs $75 Number of sales orders 4 6 10 Admin instrative $50 Number of employees 2 3 5 Costs Depreciation $174.00 Square Feet 2000 1000 3000 Total Allocated $1,705 costs Allocated cost per $17 Number of Units sold 80 20 100 unit 2. Use ABC costing determined in 1 above to calculate the profit and profit margins of the two products Standard Loot Box Deluxe Loot Box Total Sales 1,456.00 $ 557.00 2,013.00 Less: Costs 1,274.30 430.70 $ 1,705.00 Net (profit /loss) 181.70 126.30 S 308.00 Profit margin 12% 23% 100%