So, part of my assignment is to include charts/graphs "helps greatly if you insert some graphs and charts into the report.DO NOT and I cannot emphasize this enough, DO NOT simply attach all 4 tabs from our excel sheets or reference them, this will not help. This report is designed to be read by a Board member, so attaching the excel file while required should not be part of your written report.

I have no idea of what he is looking for....here is my excel document I am suppose to include with charts/graphs/...

Requirement 1 Units Price Totals Sales 60,000 $12.50 $750,000 Variable Costs 60,000 $6.00 $360,000.00 Fixed Costs $295,525.00 Net Income $94,475.00 Requirement 2 Contribution Margin per Unit in Dollars = Selling Price - Variable Costs Selling Price Variable Costs Contribution Margin per Unit $12.50 $6.00 $6.50 Contribution Margin Ratio = Contribution Margin/Selling Price Contribution Margin Selling Price Contribution Margin Ratio $6.50 $12.50 52% Requirement 3 Break-Even Point = Fixed Costs / Contribution Margin Fixed Costs Contribution Margin Break-Even Point in Units (Rounded) $295,525 $6.50 45,465 Break-Even Point in Units X Selling Price per Unit = Break-Even Point Sales Break-Even Point in Units Selling Price per Unit Break-Even Point in Sales (Rounded) 45,465 $12.50 $568,317 Requirement 4A Margin of Safety in Units = Current Unit Sales - Break-Even Point in Unit Sales Current Unit Sales Break-Even Point in Sales Margin of Safety in Units 60,000 45,465 14,534.62 Requirement 4B Margin of Safety in Dollars =Current Sales in Dollars -Break-Even Point Sales in Dollars Current Sales in Dollars Break-Even Point in Dollars Margin of Safety in Dollars $750,000 568325 $181,675 Requirement 4C Margin of Safety as a Percentage = Margin of Sales in Units / Current Unit Sales Margin of Safety in Units Current Unit Sales Margin of Safety Percentage 14,535 60,000 24% Requirement 5 Degree of Operating Leverage = Contribution Margin / Operating Income Contribution Margin Operating Income Operating Leverage $390,000.00 94475 4.1281 Requirement 6 Units $ Per Unit Totals Sales 72,000 $12.50 $900,000 Variable Costs 72,000 $6.00 $432,000 Fixed Costs $295,525 Net Income $172,475 Operating Leverage Times % Increase Increase would be XX% 4.1281 20 83% Prior Income $94,475.00 From Part 1 Increase $78,414.25 Prior IncomeX83% Above Total $172,889 Requirement 7 Targeted Income = (Fixed Costs + Target Income) / Contribution Margin Fixed Costs + Target Income Divided by Contribution Margin # of Units (Rounded) Fixed Costs $295,525 Target Income $120,000 Total $415,525 $6.50 63,927 # of Units Above X $ Per Unit Proof Revenue 63927*12.50 $799,087 Variable Costs 63927*6.00 $383,562 Contribution Margin $415,525 Fixed Costs $295,525 Net Income $120,000 Requirement 8 Sales Mix Current Specialty Total Expected Sales Units 60,000 5,000 65,000 Revenue = Sales X Price $750,000 $55,000 $805,000 Variable CostsX Units $360,000 $31,000 $391,000 Contribution Margin $390,000 $24,000 $414,000 Fixed Costs $295,525 $15,000 $310,525 Operating Income $94,475 $9,000 $103,475 Prior Net Income From Requirement 1 $94,475.00 Additional Operating Income (Operating Income Above Less Prior Income) $9,000.00 Decision With Explanation Hampshire Company should agree to sell the umbrellas to the touring business. In producing umbrellas there is the quantitative increase in operating income of an additional $9000 after the .20 cent increase in variable selling costs and the $15000 in additional administrative costs. Additionally, although harder to quantify, there is the qualitative factor of selling to the touring business which might increase viability and bring more business to the company in the future. If Hampshire Company doesn't already have branding on their umbrellas, maybe this would be a good opportunity to implement that.