Please review the attached Team Project.
Convert Parts A – D into a POWERPOINT Presentation.
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| Part A. |
Part A.
| What is Mollys current monthly volume?
| 2
|
|
|
|
|
| 0 |
00
items |
Fixed Cost = |
$
1,700.00
| Variable Cost = |
|
|
|
|
|
| $0.25 |
|
|
| Price per item |
=
|
|
| $1.10 |
|
|
| Total Cost = |
$1,700.25 |
| Volume = |
2000 |
Part B with purchase
| Molly Cleaners Breakeven Analysis w/ New Equipment. |
Cost vs.
|
|
|
|
|
| Revenue |
| Equipment = |
$16,200.00 |
| Previous FC = |
|
|
|
|
|
| $1,700.00 |
|
|
| Data
Morgan: Breakeven Analysis: Submodel = 0; Problem size @ 2 by 2 |
|
|
| Option 1 |
|
|
| Fixed cost |
$17,900.00 |
|
|
| Variable cost |
$0.25
Revenue $1.10
|
|
| Results |
|
|
| Breakeven points |
| Units |
| 21059 |
|
|
| Dollars |
$23,164.71 |
|
|
| Graph |
|
|
| X-axis Min and max |
|
| Costs |
Revenue
0
| 17900 |
0
| 42117.6470588235 |
28429.4117647059 |
46329.4117647059 |
Cost-volume analysis
Costs 0 42117.647058823524 17900 28429.411764705881 Revenue 0 42117.647058823524 0 46329.411764705881 Units
$
Enter the data in the shaded area.
Cost-volume analysis
Costs 0 42117.647058823524 17900 28429.411764705881 Revenue 0 42117.647058823524 0 46329.411764705881 Units
$
Part B no purchase
| Breakeven Analysis w/ no new equipment |
| Cost vs. Revenue |
If Molly purchase new equipment, how many additional items will she have to dry clean each month to break even? |
| 19059 |
items
Data
Morgan: Breakeven Analysis: Submodel = 0; Problem size @ 2 by 2
Option 1
Fixed cost $1,700.00
Variable cost $0.25
Revenue $1.10
Results
Breakeven points
| Old equipmentUnits |
2000
Dollars
| $ 2,200.00 |
| BE w/ New Machine |
21059
| Additional items needed to Breakeven with purchase = |
19059
Graph
X-axis Min and max Costs Revenue
0
|
| 1700 |
0
| 4000 |
2700 |
4400 |
Cost-volume analysis
Costs 0 3999.9999999999995 1700 2700 Revenue 0 3999.9999999999995 0 4400 Units
$
Enter the data in the shaded area.
Cost-volume analysis
Costs 0 3999.9999999999995 1700 2700 Revenue 0 3999.9999999999995 0 4400 Units
$
Part C
|
| Curnent
| Fixed Cost = |
$1,700.00
|
| Equipment Cost = |
$450.00 |
|
| Total Fixed Cost = |
| $2,150.00 |
|
|
| Variable cost/item = |
$0.25
|
| Voume increased = |
4300 |
|
| Total Variable Cost = |
| $1,075.00 |
Total Cost =
|
| $3,225.00 |
Price per item $1.10
|
| Total Revenue = |
| $4,730.00 |
|
| Profit = |
| $1,505.00 |
| Molly will see a profit of 1,505.00 |
Part D.
Breakeven Analysis
Morgan: Created by Excel OM/QM version 5.2.116 |
Cost vs. Revenue Curnent Fixed Cost = $1,700.00
Equipment Cost =
| $0.00 |
paid in full |
Total Fixed Cost = $2,150.00
Variable cost/item = $0.25
Voume increased =
| 3800 |
Data
Morgan: Breakeven Analysis: Submodel = 0; Problem size @ 2 by 2 Total Variable Cost = $1,075.00
Option 1 Total Cost = $3,225.00
Fixed cost $1,700.00 Price per item
|
|
| $0.99 |
Variable cost $0.25 Total Revenue = $4,730.00
Revenue $0.99 Profit = $1,505.00
Results
Breakeven points
Units
|
| 2297 |
Dollars
| $ 2,274 |
Graph
X-axis Min and max Costs Revenue
0 1700 0
| 4594.5945945946 |
2849 |
4548.6486486487 |
Cost-volume analysis
Costs 0 4594.594594594595 1700 2848.6486486486488 Revenue 0 4594.594594594595 0 4548.6486486486492 Units
$
Enter the fixed and variable costs and the selling price in the data area. You may enter a volume at which to perform a volume analysis.
Cost-volume analysis
Costs 0 4594.594594594595 1700 2848.6486486486488 Revenue 0 4594.594594594595 0 4548.6486486486492 Units
$
Part E.
| If Molly can pay off her new equipment in 3 year, she can keep the prices at $1.10 and keep her volume at
| 4700 |
.
Fixed Cost = $1,700.00
Variable cost/item = $0.25
| Sales Price/item = |
$0.99
| items serviced= |
4700
| Total Variable Cost= |
$1,175.00 |
| Total Cost= |
$2,875.00 |
| Total Revenue= |
$4,653.00 |
| Profit= |
$1,778.00 |
| Molly Break even with volume change |
| Break-even volume |
2297
