1st Assignment( I believe there is a Case Study, I need to send tommorow for this one)
Cost Analysis and Business Planning
Write a paper between 700 and 1,000 words addressing the following:
Part 1, Sections 1-2: Provide calculations and a solution for total variable costs, break even in sales volume (number of members), break even in sales (in dollars), and margin of safety.
Part 1, Section 3: Respond to the questions included with the case study.
Part 1, Section 4: Assume you decide to invest in the franchise. Provide a description and estimates in dollars for monthly sales, variable and fixed expenses. Explain how you determined each number and provide a written list of assumptions.
A case study and instructions are provided during week five.
Format the paper consistent with APA guidelines. Deliverables: Paper (MS Word) and Excel File (optional). Review your Originality Report generated from SafeAssign. A new originality report is created with each attempt. Your last attempt is used for grading.
3rd Assignment( will have to send this information tomorrow, not sure where it is)
Budget Preparation/Variance Analysis
The purpose of this assignment is to evaluate and prepare a budget.
Resources: Excel File. Tutorials and links to Excel help files were provided during week one of our class.
Instructions:
1. Download the Excel file provided. The file is available at the end of week five.
2. Read the instructions tab.
3. Complete the Budget and Variance Analysis tab.
4. Submit the completed Excel file.
Extra info
General Instructions: Download the Excel file provided. Your responsibility is to calculate prior year actual results and prepare a flexible budget. Use prior year data to complete the 2018 variable costing income statement. The flexible budget includes several changes to the data. The changes are listed in the Excel file / Instructions Tab.
Excel: In order to minimize errors, improve accuracy, and increase efficiency use formulas in all cells. If you need assistance with Excel review the week one questions thread. Included therein are three options to help you advance your Excel skills. Two links at the bottom are titled “Formula Overview” and “Excel – Basic Math”. The third option is Excel Essential Training (week one learning activities). The tutorials will help you with, in part, formulas and spreadsheet format.
Video: In order to gain experience and insight please review the following video. It is a simple presentation and will help everyone develop a basic understanding of flexible budgets. The video was created by a third party. There are additional videos included with the Bing search as well.
Flexible Budget Example
Flexible Budget Guidance: For additional information regarding flexible budgets please review the following.
What is a flexible budget?
Based on the example, fixed expenses do not change with volume. Contrary, variable expenses change with volume. With respect to the case study the same principles apply. The only difference is that our variable expenses will change based on sales volume instead of machine hours.
Example:
Sales Volume 2,640
Feed cost per animal 3.13
Total feed cost = 3,000*3.23=8,263
Advertisement, Bedding and Specialty Food Expense: Advertisement is a fixed expense at the 2,640 volume level (column F). As a result, column F, row 17 is equal to -0-. However, the expense is considered a mixed cost (fixed and variable) with the flexible budget (column H). Bedding and specialty food does not apply to the prior year income statement (column F). As a result, column F, rows 18 and 19 is equal to -0-. For further clarification my suggestion is to read the instructions tab.
Variance and Variance Explanation: A variance is the difference between two numbers. From a budget perspective we typically compare actual business results to our budget. Material deviations are analyzed to help us plan, in part, cash flow, revenue projections, expense levels, and to make informed business decisions.
Calculate the variance for all items listed on the spreadsheet (i.e. sales, all variable and fixed expenses, contribution margin, net income, and the break even computation).
Column J: Enter the difference between actual results and the budget.
Column L: Explain the difference.
Instructions
Data
1. Compute results using the prior year actual accounting data listed above. Enter the information in the
Budget
and
Analysis
tab, column F.
Budget
Budget and Variance Analysis
| 2019 Annual Budget and Variance Analysis | ||
| Annual | Sales | Enter sales volume in colums F and H, row 4. |
| Variance Explanation | ||
| Less: Variable Expenses | ||
| Bedding | ||
| Specialty Food | ||
| Total Variable Expenses | ||
| Contribution Margin | ||
| Less: Fixed Expense | ||
| Total Fixed Expense | ||
| Net Income (Loss) | ||
| Break Even (Units) | ||
| Break Even (Dollars) | ||
| Margin of Safety (Dollars) |
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Formatting
Title Page
Citation
Outline
