PLEASE help! the paper are the instructions to fill in the boxes in the excel sheet
eating a multiproduct profitability fthis project is to give the effects of changing business conditions on the The purposes can be used to deters will be to use Excel such a way that any changes to the Excel CVP Modeling project The purpose of this project is to give you experience creating a mi analysis that can be used to determine the effects of changing bus client's financial position. Your goal will be to use Excel in such a wa assumptions will correctly ripple through the entire profitability anal lover, decided to start selling unique pet Business Description After taking business classes, Jake, an avid dog-lover, decided to supplies at trade shows. He has two products: Product 1: "Throw-it" a tennis ball thrower that will sell for $15. Product 2: "Treat-It is"- an automatic treat dispenser that releases a tri his paw on the pedal. The treat dispenser will sell for $40. + disnenser that releases a treat when the dog plares Costs: Jake has hired an employee to work the trade show booths. The work contract is 1 per month salary plus a commission equal to 10% of sales revenue. Jake will also spend an per month on trade-show entry fees. Jake is purchasing the products from a supplier in China Throw-It cost $2.50 each; Treat-It Is cost $11 each. Shipping and handling on the Throw.its will cost $6 each; Shipping and handling on the Treat-It-Is, which are heavier, will cost $9 each. The shipping and handling costs will be paid by Jake, not the customer. Assume Jake expects to sell 600 Throw-Its and 200 Treat-It-Is during his first month of operations (June) Jake's financial goal is to earn a net operating income of $6,820 per month. He believes volume may grow at a rate of 6% a month. Directions You have been hired by Jake to build a CVP model that will help him understand the impact of business conditions on his operating income. (See "Starting File" worksheet). In your model, all of the original assumptions will be listed in one area of the spreadsheet (green box). All other calculations in the model will reference the assumptions green such that if any assumption changes, the effect will ripple through the entire me accomplish this goal, you will use FORMULAS, rather than numbers, in every other worksheet. In other words, the only place you will type numbers is the green as box. bers is the green assumptions FIRST TASK: Rename your Excel spreadsheet to your full name the "decrease decimals" button on your FORMATTING conventions to use throughout project: Round all UNITS to the nearest whole unit. Use the decrease decimals bar rather than the Rounding function Chow all MONETARY amounts as dollars and cents Round to the neares the "decrease decimals" button rather than the Rounding function. Show all percentages as y, not as decimals. (x%. not.xx) Right justify all cells (numbers should be to the right side of the cell, not in Round to the nearest cent. (Sx.xx). Use de of the cell. not in the middle or left) the data about Jake's business denied Il fixed costs separately before finding the to. Identity and 1) Complete the assumptions (green box) based on th list all variable costs separately and all fixed costs Separ type of cost. ning Jake ONLY sells either Product B/E Product #2= 155 units 21 Complete the Product Analysis (pink boxes) assumine (Throw-It) OR Product #2 (Treat-it-Is). Check figures: B/E Product #1 = 496 units; B/E Product of June (yellow box). HINT: On product only listed in the total column. Make other line items. Finally, calculate the overall W.AM 31 Complete the CM Income Statement for the month of June (vella line income statements such as this, the fixed costs are only listed in sure you also show the totals for all other line items. F for the company. Check figure: Net Operating Income = $3,720 W-A CM% = 36.479 4) Calculate the weighted average contribution margin (W-A CM) per unit (in blue boy Check figure: W-A CM/unit = $7.75 5) Use the W-A CM/unit to calculate the TOTAL number of units needed to break-even (TOTAL column in the first orange box). THEN, calculate the number of EACH type of product needed to break-even. Finally, calculate the sales revenue associated with this volume for EACH product, and then the sales revenue to break-even in total. Check figures: B/E Product #1 = 240; B/E Product #2= 80 6) Use the W-A CM/unit to calculate the total number of units needed to achieve Jake's target profit (TOTAL column in the second orange box). THEN, calculate the number of EACH type of product needed to achieve the target profit. Finally, calculate sales revenue a volume for EACH product, and then the sales revenue in total. Check figures: B/E Product #1 =900; B/E Product #2= 300 , calculate sales revenue associated with this 7) Calculate the Margin of Safety (MOS) using June sales as the expected sale Calculate the MOS in terms of sales revenue and as a percentage. Also ca degree of operating leverage (round to the nearest 2 decimal places) and use the expected percentage change in net operating income stemming from in sales volume. Check figures: MOS%-60%; Degree of Operating Leverage = 1.6 8) Make sure you have cleaned up your worksheet using the formatting above. as the expected sales (purple box). ercentage. Also calculate the current mal places) and use it to determine te stemming from an expected change matting conventions listed (9) Submit your file through Canvas by 11:59 PM on March 1, 2020. Home Insert Draw Page Layout Formulas Data Bit X A Parte Calibri Body 11 A BTU 13 - OA General I S . Conform . Marge & C Delete B Z C K40 x fx Con Martincome ESSERE Bus Directions Starting file MacBook Air
