Once again, review the project content for your business plan that you submitted in previous weeks. Revise the plan to reflect the new information that you are learning this week, as well as any Instructor feedback you may have received, and then add to your content the following information: Compute Return On Investment, Residual Income, and Economic Value Added.

Prepare a balanced scorecard.

Define the major environmental considerations, economic impacts, and societal considerations of the business.

Define the primary users of a sustainability report and their needs.

Are you profitable? Are you solvent? Have you created value?

You must submit your work as a Microsoft Word document and your submission must be a minimum of 1,400 words

- Let's assume that Sweet Treats incurs an average fixed cost of $2,000 per month and an average variable cost of $5 per unit. If they sell 500 units per month, their total cost would be $4,500($2,000+$5500). Their average total cost would be $9($4,500/500). - If Sweet Treats sells each unit for $12, their sales revenue would be $6,000 per month (500 units $12 per unit). The difference between the sales revenue and the average total cost, which is $3 per unit, represents their profit margin. 2. - If the volume drops by 10%, we need to recalculate the total revenue, total cost, and profit. If the volume drops by 20%, we need to recalculate again. The business may still be profitable with a 10% volume drop, but it may not be profitable with a 20% volume drop. It depends on the cost structure and the price elasticity of demand. - If Sweet Treats' volume drops by 10%, they will sell 450 units per month ( 500 units 0.9). Their total cost would be $4,275($2,000+$5450), and their average total cost would be $9.50($4,275/450). If they continue to sell each unit for $12, their sales revenue would be $5,400 per month (450 units x$12 per unit), resulting in a profit of $1,125 per month ($5,400$4,275). - However, if their volume drops by 20%, they will sell 400 units per month ( 500 units 0.8). Their total cost would be ($2,000+$5400) Multiply 5 by 400 . 2000+2000 =$4,000, and their average total cost would be $10($4,000/400). - If they continue to sell each unit for $12, their sales revenue would be =$4,800 per month (400 units * $12 per unit), resulting in a loss of $200 per month ($4,800$4,000). 3. The contribution margin is the difference between the sales price and the variable cost per unit. It can be expressed as a percentage or a dollar amount. The break-even point is the level of sales at which the total revenue equals the total cost. The margin of safety is the difference between the actual sales volume and the break-even volume. The operating leverage is the degree to which the fixed costs are used in the cost structure