There is no need to round as you are doing this in excel. All workings must be dynamic. An example of what dynamic means has been provide and has been explained in detail. ( see the attached fie).

You have recently been appointed as a senior accountant at an automobile company. You notice that no one has created method to apply overhead to the products, and they are currently being sold without this value added to them. Currently all overhead is considered an administrative expense on the profit/loss statement as they aren't sure which product to apply it to. Understanding that this has an impact on reporting, and decision making, you have decided to implement a method of traditional based costing. You're pretty sure that using job costing is the way to go. From what you've been told by your support staff, the amount to tires used is a good indicator of how much overhead relates to that product. Of the overhead applied, approximately 30% is variable. For the direct materials, approximately 40% is variable, while only 10% of the direct labour is considered variable. The market is infinite and will accept as many vehicles as you are willing to produce.

1)How many units, of each product, do you need to produce in order to make a profit of $500. Provide support. (60)

You have now been approached by a consultant who claims that they can increase your sales of each product by 20% if you are willing to pay them $300 each year.

2) Is this a good idea, why? Provide support. (25)

3) What is the new break even in dollars? Provide support. (15)

NEED TO BE SOLVE IN THE EXACT PATTERN IN THE ATTACHED PICS.

Assignment Template [Protected View] - Excel gurjot singh X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do Share PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X L13 X V fx B C D E F G H I K L M N O P Q R S T U Question 1 Estimated Activity Fast Slow Kinda Slow MOH ($) Tires 33 34 13 32 Doors 24 16 20 38 DM ($) 10 13 15 DL ($) 12 14 16 10 MOH 11 12 Price ($) 40 50 60 13 Tires Used 12 33 14 14 Doors Used 18 22 34 15 16 Target Profit 17 Consultant Costs 18 Fast Slow Kinda Slow 19 Current Units Sold Before Your Arrival 10 20 30 20 21 Fast Slow Kinda Slow 22 Price per model 23 Less variable expenses: 24 DM 25 DL 26 MOH 27 Contribution margin per model 28 Fast Slow Kinda Slow 29 FC 30 DM 31 DL 32 MOH Sheet3 + - + 100% Ready 14:59 Type here to search e o X ~ DO ()) ENG 07-06-2021 E.Assignment Template [Protected View] - Excel gurjot singh X Insert View & Share File Home Page Layout Formulas Data Review Help Tell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X L13 X V fx A B C D E F G H K L M N 0 P Q R S T U V W 31 DL 32 MOH 33 Total 34 35 Overall Cash Required 36 37 Fast Slow Kinda Slow 38 Breakeven in Units 39 40 Question 2 41 42 Price Per Model 43 Less variable expenses: 44 Contribution margin per model 45 46 FC 47 48 Adjusted 49 50 Price Per Model 51 Less variable expenses: 52 Contribution margin per model 53 54 FC 55 56 Idea figures complied 57 Sales 58 VC 59 CM 60 FC 61 NI 62 63 Good Idea? Why 64 65 Breakeven in dollars Sheet3 + - + 91% Ready 15:00 Type here to search X ~ DO ()) ENG 07-06-2021 E