Managerial Accounting Project #2 Break-even Cookie Project This project will focus on applying your knowledge product costing, breakeven analysis, and achieving a target prot. For this project you will be a small business owner selling cookies. You will determine the name of your business and what type of cookies you'd like to sell. Complete the following criteria in the excel workbook provided. 1. Select any cookie recipe. 1n the workbook provided you'll identify all ofthe ingredients, the direct materials to make the cookies. List all of the ingredients and include your recipe in your workbook. 2. Determine the cost to purchase all of your ingredients. List the cost of all of the ingredients. Calculate your total direct materials cost. You can do this buy visiting a local grocery store, or looking up the costs online (BJ's, Sam's Club, Walmart, etc.) a. You can estimate here, and do not need to be scientific about figuring the ratio of ingredients. If your recipe calls for salt, purchase 1 container ofsait. lfyou're unsure how many bags of our you'll needjust estimate. Try to keep it simple! 3. Determine your direct labor cost. How many employees will you need to manufacture and sell your cookies? Record all of your employees and their pay rates. Calculate your total direct labor cost. 4. Determine your manufacturing overhead costs. What other expenses will you incur to operate your cookie business? Think about what you know about indirect costs 7 things you will need but cannot directly trace back to the cost of the cookies. Record and estimate all of your manufacturing overhead costs. Calculate your total manufacturing overhead costs. 5. Using the W as your manufacturing overhead allocation method, calculate how much manufacturing overhead cost will be allocated to each cookie. Use number of cookies as your allocation base. Show your calculation! 6. Will you have any other operating expenses related to your cookie business? List any additional operating expenses you may have. 7. After analyzing the cost to make a cookie determine how much you will sell your cookie for. Record your selling price. What is your prot margin? 8. Based on your selling price and total costs, how many cookies will you need to sell to breakeven'.' Use any of the three methods from Chapter 7 to calculate breakeven in units, show your calculation! 9. If you want to achieve a target prot of $50,000, how many cookies will you need to sell'.' Show your calculation! Grading: Each Project Criteria 1-10 is worth 10 points each. Make sure to complete each project criteria. Managerial Accounting Fill in the Blank Project #2 Break-even Cookie Project Name of Business: Type of Cookie Being Sold: How Many Cookies Will you Sell?