Imagine your business' expenses and classify them into variable and fixed. List three or each. Variable Expense Description Amount Stated Assumptions Fixed Expense Description Amount Stated Assumptions

Step 3 - Contribution Margin Income Statement Build a contribution margin format income statement in Excel that is based on formulas so that you can make changes to volume or margins. Rename the underlined headings to reflec the appropriate headings. Income Statement For the Year Ended December 2022 Total Per Unit XXXXXXXXXX Less: XXXXXX XXXXXXXXXX Less: XXXXXX XXXXXXXXXX

Step 4 - Review / Sense Check Adjust your estimates to so profit looks reasonable. If your numbers show them losing a million dollars on one location, you might want to adjust some of your assumptions. Does your profit look reasonable? Yes No If your business' profit does not look reasonable, go back to Step 3 and adjust it accordingly.

Step 5 - Break-Even Calculations Using your company's financials, calculate the break-even sales $ and units values. Clearly label which formulas are being used for the calculations. In the Amount cells, use a formula to show your work. Description Formula Used Amount ($) Break-Even Sales Description Formula Used Amount (units) Break-Even Sales

Step 6 - "What if" Scenario Design a what if scenario (eg. Increase marketing by $1,000 per month and get 10 new transactions per month) and use a copy your contribution margin income statement to estimate the change in profit. Based on the result, state your recommendation on implementing the change. Income Statement For the Year Ended December 2021 Step 3 Scenario Step 6 Scenario Difference Total Per Unit Total Per Unit Total Per Unit XXXXXXXXXX Less: XXXXXX XXXXXXXXXX Less: XXXXXX XXXXXXXXXX Recommendation: Below, provide support for your recommendation, substantiated by your analysis.