The Oceanside Garden Nursery buys flowering plants in four-inch pots for $7.30 each and sells them for $14.75 each. Management budgets monthly fixed costs of $5,730 for sales volumes between 0 and 25,000 plants.

1 Cost-Volume-Profit Analysis 2 Using Excel for Cost-Volume-Profit (CVP) Analysis 3 The Oceanside Garden Nursery buys flowering plants in four-inch pots for $7.30 each and sells them for $14.75 each. Management budgets monthly fixed costs of $5,730 for sales volumes between 0 and 25,000 plants. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you 7 will be marked wrong. 8 9 Requirements: 1. Create a table to compute the revenue, variable costs, fixed costs, and total costs for each volume to use in creating your graph. (see below) 2. Use the contribution margin approach to compute the company's monthly breakeven point in units. 3. Use the contribution margin ratio approach to compute the breakeven point in sales dollars. 4. Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income (given in EnterAnswers1). 5. Use the contribution margin approach to compute the monthly sales level (in units) required to fulfill a given scenario (given in EnterAnswers1). 6. Use the contribution margin approach to compute the margin of safety (in units) using the target operating income given in requirement 4. 7. Use the high low method and the units and associated total costs from the targeted operating income in requirement 4 and the units and associated total costs if targeted operating income was $15,675 to develop the mixed cost formula for our flowering plants business. List the appropriate numbers in your formula. 8. Prepare a graph of the company's CVP relationships. Include the sales revenue line, the fixed cost line, and the total cost line by completing the table below. Create a chart title and label the axes. Excel Skills: 1. Create formulas with cell references. 2. Format the cells as accounting number format or percent style. 3. Prepare a breakeven chart. Add chart title and x-axis description. 4. Use the Excel function ROUNDUP to obtain units in whole numbers needed to achieve a minimum target 23 operating income. 1. Once the data are entered, select the following four rows using the CTRL key to select non-contiguous cells: Volume, Revenue, Fixed Costs, and Total Cost. This means you select Rows 29, 30, 32 and 33; Column C through Column P. (Or whatever the appropriate cells are to achieve the required graph) 2. Select the Insert tab, select "scatter or bubble chart" from the chart menu, then click "Scatter with Smooth Lines and Markers." Right click and move the chart to the Graph tab. 3. On the Design tab, select "Add Chart Element" then select "Chart Title" then select "Above Chart." Add the title "Breakeven 4. On the Design tab, select "Add Chart Element", then select "Axis Titles" and then select "Primary Horizontal"; label the x axis as "Units". |The above formation will come from the instructions. Show all work for all calculations. Requirement 2 Use the contribution margin approach to compute the company's monthly breakeven in units. Reference the cell(s) in the DATA table above when constructing your breakeven formula below. Do not use target profit in this calculation. Format as a number. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste the numbers you will be marked wrong.) Breakeven in Units Requirement 3 Use the contribution margin ratio approach to compute the breakeven point in sales dollars. Reference the DATA cell(s) in your formula for contribution margin ratio below. Do not use target profit in these calculations. Format the ratio as a percentage and the breakeven in dollars as accounting number format in whole dollars. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income of $13,875. Reference the cell(s) in the DATA table above when constructing your target sales level formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Target sales level (in units) Requirement 5 Use the contribution margin approach to compute the monthly sales level (in units) required to increase the target operating income of $13,875 by 16% and increase advertising costs by $4,800. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Requirement 5 Use the contribution margin approach to compute the monthly sales level (in units) required to increase the target operating income of $13,875 by 16% and increase advertising costs by $4,800. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Target sales level (in units) Requirement 6 Use the contribution margin approach to compute the margin of safety (in units) using the target operating income of $13,875. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the margin of safety Margin of Safety (in units) Requirement 7 Use the high low method and the units and associated total costs from Requirement 4 if targeted operating income was $13,875 and the units and associated total costs if targeted operating income was $15,675 to develop the mixed cost formula for our flowering plants business. Reference the DATA cell(s) in your formula below. Format appropriately. Show all calculations. High Low Method Step 1 - Variable cost per unit Step 2 - Fixed Cost Step 3 - Mixed Cost Formula State the actual "formula" with numbers using the information from steps 1 and 2 HINTS Cell | Hint: completed in the DATA table to calculate the values that are not directly given on the Instructions tab. Do not use equal sign (=) when entering a single numeric value. Do not leave any cells blank. Prepare a graph of the company's CVP relationships. Include the sales revenue line, the fixed cost line, and the total cost line. Create a chart title and label the axes. 1 Cost-Volume-Profit Analysis 2 Using Excel for Cost-Volume-Profit (CVP) Analysis 3 The Oceanside Garden Nursery buys flowering plants in four-inch pots for $7.30 each and sells them for $14.75 each. Management budgets monthly fixed costs of $5,730 for sales volumes between 0 and 25,000 plants. Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you 7 will be marked wrong. 8 9 Requirements: 1. Create a table to compute the revenue, variable costs, fixed costs, and total costs for each volume to use in creating your graph. (see below) 2. Use the contribution margin approach to compute the company's monthly breakeven point in units. 3. Use the contribution margin ratio approach to compute the breakeven point in sales dollars. 4. Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income (given in EnterAnswers1). 5. Use the contribution margin approach to compute the monthly sales level (in units) required to fulfill a given scenario (given in EnterAnswers1). 6. Use the contribution margin approach to compute the margin of safety (in units) using the target operating income given in requirement 4. 7. Use the high low method and the units and associated total costs from the targeted operating income in requirement 4 and the units and associated total costs if targeted operating income was $15,675 to develop the mixed cost formula for our flowering plants business. List the appropriate numbers in your formula. 8. Prepare a graph of the company's CVP relationships. Include the sales revenue line, the fixed cost line, and the total cost line by completing the table below. Create a chart title and label the axes. Excel Skills: 1. Create formulas with cell references. 2. Format the cells as accounting number format or percent style. 3. Prepare a breakeven chart. Add chart title and x-axis description. 4. Use the Excel function ROUNDUP to obtain units in whole numbers needed to achieve a minimum target 23 operating income. 1. Once the data are entered, select the following four rows using the CTRL key to select non-contiguous cells: Volume, Revenue, Fixed Costs, and Total Cost. This means you select Rows 29, 30, 32 and 33; Column C through Column P. (Or whatever the appropriate cells are to achieve the required graph) 2. Select the Insert tab, select "scatter or bubble chart" from the chart menu, then click "Scatter with Smooth Lines and Markers." Right click and move the chart to the Graph tab. 3. On the Design tab, select "Add Chart Element" then select "Chart Title" then select "Above Chart." Add the title "Breakeven 4. On the Design tab, select "Add Chart Element", then select "Axis Titles" and then select "Primary Horizontal"; label the x axis as "Units". |The above formation will come from the instructions. Show all work for all calculations. Requirement 2 Use the contribution margin approach to compute the company's monthly breakeven in units. Reference the cell(s) in the DATA table above when constructing your breakeven formula below. Do not use target profit in this calculation. Format as a number. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste the numbers you will be marked wrong.) Breakeven in Units Requirement 3 Use the contribution margin ratio approach to compute the breakeven point in sales dollars. Reference the DATA cell(s) in your formula for contribution margin ratio below. Do not use target profit in these calculations. Format the ratio as a percentage and the breakeven in dollars as accounting number format in whole dollars. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Use the contribution margin approach to compute the monthly sales level (in units) required to earn a target operating income of $13,875. Reference the cell(s) in the DATA table above when constructing your target sales level formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. (Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Target sales level (in units) Requirement 5 Use the contribution margin approach to compute the monthly sales level (in units) required to increase the target operating income of $13,875 by 16% and increase advertising costs by $4,800. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Requirement 5 Use the contribution margin approach to compute the monthly sales level (in units) required to increase the target operating income of $13,875 by 16% and increase advertising costs by $4,800. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the target operating income. Target sales level (in units) Requirement 6 Use the contribution margin approach to compute the margin of safety (in units) using the target operating income of $13,875. Reference the DATA cell(s) in your formula below. Format as number. Use the Excel ROUNDUP function to obtain whole units to reach the margin of safety Margin of Safety (in units) Requirement 7 Use the high low method and the units and associated total costs from Requirement 4 if targeted operating income was $13,875 and the units and associated total costs if targeted operating income was $15,675 to develop the mixed cost formula for our flowering plants business. Reference the DATA cell(s) in your formula below. Format appropriately. Show all calculations. High Low Method Step 1 - Variable cost per unit Step 2 - Fixed Cost Step 3 - Mixed Cost Formula State the actual "formula" with numbers using the information from steps 1 and 2 HINTS Cell | Hint: completed in the DATA table to calculate the values that are not directly given on the Instructions tab. Do not use equal sign (=) when entering a single numeric value. Do not leave any cells blank. Prepare a graph of the company's CVP relationships. Include the sales revenue line, the fixed cost line, and the total cost line. Create a chart title and label the axes