Need help with team assignment.

Anonymous
timer Asked: Jan 4th, 2018
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Question description

Cost Behavior Analysis

Purpose of Assignment

The case study focuses on sales mix, break-even, target profit, and allows students to experience working through a business scenario to apply these tools in managerial decision making. Students are required to make decisions and provide solutions based on their evaluation of financial data.

Assignment Steps

Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Committee (SEC)

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Scenario:

Dazzle Jewelry Company is a new startup merchandising company with the goal of offering fine jewelry at reasonable prices. This goal has been made possible by securing manufactures that have agreed to offer wholesale prices to Dazzle Jewelry Company. Dazzle's jewelry supplier's act in good faith is based on the hopes that this will be a long term relationship, and Dazzle's orders will increase considerably with the next 18 months. However, in order for Dazzle Jewelry Company to achieve this it must increase its sales. Dazzle Jewelry company just completed its first month of operations, the brother/sister owned startup inventory includes fresh water pearls, sterling silver, stainless steel watches and quality stone pieces. Each of the inventory category includes earrings, necklaces, rings and bracelets, except the stainless steel watches. The average cost of earrings per unit is $10 with an average selling price of $55, 20 units have been sold. The average cost of the necklace is $15 with a selling price of $65, 25 units have been sold. The bracelets have an average cost of $12 and a selling price of $45, 15 units have been sold. The rings on an average sell for $35, but cost $11 per unit, 30 units have been sold. The stainless steel watches average cost per unit is $35 with a selling price average of $85, and 50 units have been sold.

Dazzle Jewelry Company plans to start their business online before setting up a physical store location to keep their overhead cost low. However, since this is Dazzle Jewelry's first year of operations the owners have decided to employed your firm to help them determine how many jewelry units they need to sell in the current operating year to reach their targeted profit of $300,000. The owners realize that this information is vital in helping them develop their sales and marketing strategy.

Dazzle Jewelry Company owners noted in a follow-up e-mail that fixed cost for the year totaled $76,320, however this cost is likely to increase in the coming months by 20% based on a marketing proposal that was submitted by Bosch Advertising. The owners also noted in the e-mail that fixed cost is the same amount each month.

Use the provided worksheet to complete this assignment.

Show your work in Microsoft® Word and Excel®.

Complete calculations/computations using Excel®.

Complete the Microsoft® Word worksheet, answer each question thoughtfully providing insight, state your findings, and support your conclusion.


My part is on the Microsoft word sheet in yellow.


The excel file i uploaded Im not sure which part i will have to do. I may not be have to do any part of the excel. We have not decided.

Learning Team: Date: Assignment: Dazzle Jewelry Company Cost Volume Profit Analysis Feedback Questions Based on your analysis, how many units will Dazzle Jewelry need to break-even? What recommendation do you have for the owners related to break-even? Based on your analysis, how many units will Dazzle Jewelry need to reach their target profit? What recommendation do you have for the owners related to reaching their target profit of $300,000? Aside from increasing jewelry units for sale, what else would you recommend Dazzle Jewelry Company do to increase their sales? As a merchandise business, what are some items that contribute to the variable cost amount for Dazzle Jewelry Company? From a management viewpoint what five areas must Dazzle Jewelry Company owners need to monitor to achieve profitability? Why? Response Instructor Feedback/Comments:
Dazzle Jewelry Company Sales Mix and CM Ratio Date: Sales Mix Sales Price Per Unit Earrings Necklaces Braclets Rings Watches $ $ $ $ $ Unit Sales - 0 0 0 0 0 0 Weighted Average Sales Price Sales Mix Sales Price Per Unit Earrings Necklaces Braclets Rings Watches $ $ $ $ $ Weighted Average Variable Cost Sales Mix Earrings Necklaces Braclets Rings Watches Contribution Margin Contribution Margin Ratio - Variable Cost Per Unit $ $ $ $ $ - Sales - Variable Cost Comtribution Margin Sales Percent of Total Sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Percent of Total Sales 0% 0% 0% 0% 0% Sales Dollars $ $ $ $ $ $ Percent of Total Sales - Weighted Average Sales Price per unit #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Weighted Average Variable Cost per unit $ $ $ $ $ $ - Answer Answer #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! Dazzle Jewelry Company CVP Analysis Information Required Information Total Monthly Sales Volume Weighted Average Sales Price per unit Weighted Variable Cost per unit Contribution Margin Ratio Total Yearly Fixed Cost Total Monthly Fixed Cost Dazzle Jewelry Company Contribution Income Statement Date: Total Sales (140 units) Variable Expenses Contribution Margin Fixed Expenses Net Operating Income Refer to LO5-1 of the course textbook Explain how changes in activity affect contribution margin and net operating income. $ $ $ $ $ - Per Unit $ $ $ - Dazzle Jewelry Company Break-Even and Target Profit Analysis Date: Break-Even Analysis Dollars Sales to Break-Even Fixed Expenses $ - Contribution Margin ratio $ - Fixed Expenses Unit Contribution Margin $ $ - Dollar Sales to attain Target Profit Target Profit + Fixed Expenses Contribution Margin Ratio $ $ - Unit Sales to attain the Target Profit Target Profit + Fixed Expenses Contribution margin $ $ - Unit Sale to Break-Even: Target Profit Analysis any Analysis

Tutor Answer

strongboss5
School: UT Austin

HiKindly see attached filesIn the excel file, I've also included the calculated annual fixed price in the different worksheets if you need it to calculate the different financial ratios

Dazzle Jewelry Company
Sales Mix and CM Ratio
Date:
Sales Mix

Sales Price Per Unit

Earrings
Necklaces
Braclets
Rings
Watches

$
$
$
$
$

Unit Sales

-

0
0
0
0
0
0

Weighted Average Sales Price
Sales Mix

Sales Price Per Unit

Earrings
Necklaces
Braclets
Rings
Watches

$
$
$
$
$

Weighted Average Variable Cost
Sales Mix

Earrings
Necklaces
Braclets
Rings
Watches

Contribution Margin

Contribution Margin Ratio

-

Variable Cost Per
Unit
$
$
$
$
$

-

Sales - Variable Cost

Comtribution Margin
Sales

Percent of
Total Sales
#...

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Review

Anonymous
Excellent job

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