Step 1 timations per hour day they low and what the average transactions might be it doesn't matter if you are correct just benables the estimates to forecast annual revenue and annual customer or transaction counts. Input stated Assumptions Description Bef of Art Animated Step 2 Variable/hed Expenses ge your businesses and classify the intable and found three or four of each Variatio tape Description Amount stated Ansumptions Fed Expense Description Amount stated Astumptions 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. Income Statement For the Year Ended December 2021 Total Per Unit XXXXXXXXXX Less: XXXXXX . Less: XXXXXX XXXXX Step 4 - Review / Sense Check Matjust 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 S and units values. Clearly label which formulas are being used for the calculations. In the Amount cells, show your work Description Formula Used Amount ($) Break-Even Sales Formula Used Description Break Even Sales Amount (units) Step 6 - "What ir scenario Design What to create marketing by S1,000 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 Scenario Total Per Unit Step 6 Scenario Per Unit Difference Total Per Unit Total Revenues Less: Variable Expenses Contribution Margin Les Fred Expenses Net Income Recommendation: Below, provide support for your recommendation, substantiated by your analysis, Grading Rubric 1) Compiling the income statement with correct format and calculations 2) Reasonableness of assumptions used 3) Correctness of the break-even calculations, given the assumptions 4) Execution of the scenario and recommendation correctly 5) Overall appearance, clarity, organization, spelling, and grammar Marks Earned Total Marks 5 1 1 2 1 10 CB203 Assignment Cost / Volume / Profit Analysis Assignment Instructions For this assignment you will pick a local business that is close to you or on your route of travel. You can choose any company, but it should be different from anyone else that you know from dass. Take a photo of the outside of the business and include it in your final submission. The Assignment You will attempt to estimate, using reasonable assumptions, what a simplified contribution margin format income statement would look like for the business you choose. For example, Step 1: Estimate how many customers per hour or day they have and guess what the average transaction size might be. It doesn't matter if you are correct, just be reasonable. Use these estimates to forecast annual revenue and annual customer or transaction counts. Step 2: Imagine their expenses and classify them into variable and fixed. List three or four of each. For example, a car repair shop might have the following costs: Variable: . 4 mechanics at $30 per hour including benefits Parts cost at 20% of revenue Utilities to run the power tools $3 per transaction . . Fixed: Employee to answer phone, and deal with customers $40,000 per year including benefits Advertising expense on Google $2,000 per month Monthly rent on the building. $5,000 per month Business taxes paid to city $12,000 per year . Fixed: Employee to answer phone, and deal with customers $20,000 per year including benefits Advertising expense on Google $2,000 per month Monthly rent on the building, $5,000 per month Business taxes paid to city $12,000 per year Step 3: Use this information to build a contribution margin format income statement in Excel that is based on formulas so that you can make changes to volume or margins. Step 4: 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. Step 5: Using the numbers, calculate the break-even sales S and units values. Step 6: 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. Marks: . . . Compiling the income statement with correct format and calculations (5 marks) Reasonableness of assumptions used (1 mark) Correctness of the break even calculations, given the assumptions. (1 mark) Execution of the scenario and recommendation correctly (2 marks) Overall appearance, clarity, organization, spelling, and grammar (1 mark) . Click here for instruction to complete this assignment. Make sure you pick a company different than other students you know and complete your owir work. This assignment is worth 10% of your overall grade and late assignments will not be accepted. Do not wait until the last day to complete it. Attached is a template for you to use for your CVPA Assignment, CVP Analysis Examole.xlsx Step 1 timations per hour day they low and what the average transactions might be it doesn't matter if you are correct just benables the estimates to forecast annual revenue and annual customer or transaction counts. Input stated Assumptions Description Bef of Art Animated Step 2 Variable/hed Expenses ge your businesses and classify the intable and found three or four of each Variatio tape Description Amount stated Ansumptions Fed Expense Description Amount stated Astumptions 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. Income Statement For the Year Ended December 2021 Total Per Unit XXXXXXXXXX Less: XXXXXX . Less: XXXXXX XXXXX Step 4 - Review / Sense Check Matjust 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 S and units values. Clearly label which formulas are being used for the calculations. In the Amount cells, show your work Description Formula Used Amount ($) Break-Even Sales Formula Used Description Break Even Sales Amount (units) Step 6 - "What ir scenario Design What to create marketing by S1,000 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 Scenario Total Per Unit Step 6 Scenario Per Unit Difference Total Per Unit Total Revenues Less: Variable Expenses Contribution Margin Les Fred Expenses Net Income Recommendation: Below, provide support for your recommendation, substantiated by your analysis, Grading Rubric 1) Compiling the income statement with correct format and calculations 2) Reasonableness of assumptions used 3) Correctness of the break-even calculations, given the assumptions 4) Execution of the scenario and recommendation correctly 5) Overall appearance, clarity, organization, spelling, and grammar Marks Earned Total Marks 5 1 1 2 1 10 CB203 Assignment Cost / Volume / Profit Analysis Assignment Instructions For this assignment you will pick a local business that is close to you or on your route of travel. You can choose any company, but it should be different from anyone else that you know from dass. Take a photo of the outside of the business and include it in your final submission. The Assignment You will attempt to estimate, using reasonable assumptions, what a simplified contribution margin format income statement would look like for the business you choose. For example, Step 1: Estimate how many customers per hour or day they have and guess what the average transaction size might be. It doesn't matter if you are correct, just be reasonable. Use these estimates to forecast annual revenue and annual customer or transaction counts. Step 2: Imagine their expenses and classify them into variable and fixed. List three or four of each. For example, a car repair shop might have the following costs: Variable: . 4 mechanics at $30 per hour including benefits Parts cost at 20% of revenue Utilities to run the power tools $3 per transaction . . Fixed: Employee to answer phone, and deal with customers $40,000 per year including benefits Advertising expense on Google $2,000 per month Monthly rent on the building. $5,000 per month Business taxes paid to city $12,000 per year . Fixed: Employee to answer phone, and deal with customers $20,000 per year including benefits Advertising expense on Google $2,000 per month Monthly rent on the building, $5,000 per month Business taxes paid to city $12,000 per year Step 3: Use this information to build a contribution margin format income statement in Excel that is based on formulas so that you can make changes to volume or margins. Step 4: 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. Step 5: Using the numbers, calculate the break-even sales S and units values. Step 6: 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. Marks: . . . Compiling the income statement with correct format and calculations (5 marks) Reasonableness of assumptions used (1 mark) Correctness of the break even calculations, given the assumptions. (1 mark) Execution of the scenario and recommendation correctly (2 marks) Overall appearance, clarity, organization, spelling, and grammar (1 mark) . Click here for instruction to complete this assignment. Make sure you pick a company different than other students you know and complete your owir work. This assignment is worth 10% of your overall grade and late assignments will not be accepted. Do not wait until the last day to complete it. Attached is a template for you to use for your CVPA Assignment, CVP Analysis Examole.xlsx