ySNHU Login ACC 201 Module wo... Log in to UNIDAYS Paxi Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal stakeholders to share your company's progress over the past month and how it has performed with respect to your cost and budget projections. The investors would like to see the thought process behind your financial strategy and how your company has performed in its first month. They have therefore asked you to present a report that includes the costing and income data from your Project Workbook. Directions Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business's performance to date. Your report can be in the form of a PowerPoint presentation or a Word document (based on the templates provided in the What to Submit section). In either format, be sure to effectively communicate with your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. If you choose to do a PowerPoint presentation, you'll need to include speaker notes for each slide. 2. Financial Strategy: Review your original business plan and costing strategies. A. Costing System: Justify the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. B. Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume- profit analysis in your defense. C. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense. D. Target Profits: Identify your break-even points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. 2 Milestone One-Variable and Fixed Costs E 5 Collars 7 Item 9 High-tensile strength nylon webbing $ 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12 Price tags 13 20:281 N3:31&888588380 ariable Cost/ltem 400 Total Variable Costs per Co 23 Leashes 25 Item High-tensile strength nylon webbing $ 28 Polyesterylon ribbons 27 29 Buckles made of cast hardware 30 Price tags ariable Costiltem Total Variable Costs per Le: $ 12.10 Item Collar maker's salary [monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item Leash maker's salary (monthly) Depreciation on sewing machines Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fized Costs Fized Costs $ $ 55.00 38 200.00 $ $ $ E 4,028.33 Fized Costs S 250.00 200.00 400.00 183.33 166.67 BS $ 42 Harnesses 44 Item 46 High-tensile strength nylon webbing $ 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 8:89:828 ariable Costiltem 4.50 4.00 0.10 14.60 Total Variable Costs per Ha www Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fized Costs Fized Costs 2,946.67 55.00 250.00 200.00 400.00 4,201.67 AN ARE LORE 3 $ 20 39 A 3 Milestone Two - Contribution Margin Analysis COLLARS 8 Sales Price per Unit 9 Variable Cost per Unit 11 Contribution Margin $ 20.00 9.10 10.90 $ $ LEASHES 22.00 12.10 9.90 $ $ HARNESSES Milestone Two - Break-Even Analysis Sales Price Fixed Costs Contribution Margin Break-Even Units (round up) Target Profit Break-Even Units (round up) Target Profit Break-Even Units (round up) $ $ $ $ $ $ COLLARS 20.00 4,028 10.90 369.57 (370.00) 300.00 4,055.85 397.00 500.00 4,074.20 415 $ $ $ $ EUS S LEASHES 22.00 4,089 9.90 413.06 (413.00) 400.00 4,129.69 453.00 600.00 4,149.90 in $ $ $ $ $ HARNESSES 25.00 4,266 10.40 410.23 (410.00) 500.00 4,314.51 (458.00) 650.00 4,314.51 473 ySNHU Login ACC 201 Module wo... Log in to UNIDAYS Paxi Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal stakeholders to share your company's progress over the past month and how it has performed with respect to your cost and budget projections. The investors would like to see the thought process behind your financial strategy and how your company has performed in its first month. They have therefore asked you to present a report that includes the costing and income data from your Project Workbook. Directions Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business's performance to date. Your report can be in the form of a PowerPoint presentation or a Word document (based on the templates provided in the What to Submit section). In either format, be sure to effectively communicate with your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. If you choose to do a PowerPoint presentation, you'll need to include speaker notes for each slide. 2. Financial Strategy: Review your original business plan and costing strategies. A. Costing System: Justify the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. B. Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume- profit analysis in your defense. C. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense. D. Target Profits: Identify your break-even points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. 2 Milestone One-Variable and Fixed Costs E 5 Collars 7 Item 9 High-tensile strength nylon webbing $ 10 Polyesterylon ribbons 11 Buckles made of cast hardware 12 Price tags 13 20:281 N3:31&888588380 ariable Cost/ltem 400 Total Variable Costs per Co 23 Leashes 25 Item High-tensile strength nylon webbing $ 28 Polyesterylon ribbons 27 29 Buckles made of cast hardware 30 Price tags ariable Costiltem Total Variable Costs per Le: $ 12.10 Item Collar maker's salary [monthly) Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fixed Costs Item Leash maker's salary (monthly) Depreciation on sewing machines Utilities and insurance Scissors, thread, and cording Loan payment Salary to self Total Fized Costs Fized Costs $ $ 55.00 38 200.00 $ $ $ E 4,028.33 Fized Costs S 250.00 200.00 400.00 183.33 166.67 BS $ 42 Harnesses 44 Item 46 High-tensile strength nylon webbing $ 47 Polyesterylon ribbons 48 Buckles made of cast hardware 49 Price tags 8:89:828 ariable Costiltem 4.50 4.00 0.10 14.60 Total Variable Costs per Ha www Item Harness maker's salary Depreciation on sewing machines Rent Utilities and insurance Scissors, thread, and cording Loan Salary to self Total Fized Costs Fized Costs 2,946.67 55.00 250.00 200.00 400.00 4,201.67 AN ARE LORE 3 $ 20 39 A 3 Milestone Two - Contribution Margin Analysis COLLARS 8 Sales Price per Unit 9 Variable Cost per Unit 11 Contribution Margin $ 20.00 9.10 10.90 $ $ LEASHES 22.00 12.10 9.90 $ $ HARNESSES Milestone Two - Break-Even Analysis Sales Price Fixed Costs Contribution Margin Break-Even Units (round up) Target Profit Break-Even Units (round up) Target Profit Break-Even Units (round up) $ $ $ $ $ $ COLLARS 20.00 4,028 10.90 369.57 (370.00) 300.00 4,055.85 397.00 500.00 4,074.20 415 $ $ $ $ EUS S LEASHES 22.00 4,089 9.90 413.06 (413.00) 400.00 4,129.69 453.00 600.00 4,149.90 in $ $ $ $ $ HARNESSES 25.00 4,266 10.40 410.23 (410.00) 500.00 4,314.51 (458.00) 650.00 4,314.51 473