ACCT 20200 Fall 2014
Excel Assignment #2
CVP Analysis
Joe, a student at ND, has decided to start a business. He has decided to open a Brat stand
between the football stadium and the Mendoza College of Business Building on football
Saturdays. He expects to sell Brats for $4.00 each. Below are a list of his expected costs.
Variable Costs (per unit):
Brat
Buns
Mustard
Ketchup
Sour Kraut
Wrapper
Total Variable Costs
$
$
$
$
$
$
$
1.13
0.52
0.05
0.05
0.18
0.51
2.44
Fixed Costs:
Workers Wages
Rent space/Permit cost
Gas for Grill
Ice
$7.50/hour, need two workers for three hours
each
$ 160.00
$ 100.00
15 bags of ice at $3.89 each
PART 1: Required:
Assuming that Joe is only going to sell Brats,
1. What are the total fixed costs for each football Saturday?
2. What is the Contribution Margin per unit?
3. What is the Contribution Margin percentage?
4. What is the Breakeven Point in Units?
5. What is the Breakeven Point in Sales Dollars?
6. What unit sales are needed to earn a $200 profit?
7. What Sales Dollars are required for a $200 profit?
8. Suppose the selling price per unit decreases, what is the impact on the Breakeven
point?
9. Suppose the selling price per unit increases, what is the impact on the Breakeven
point?
10. Suppose the variable costs per unit increase, what is the impact on the Breakeven
point?
11. Suppose the variable costs per unit decrease, what is the impact on the Breakeven
point?
12. Suppose the fixed costs per unit increase, what is the impact on the Breakeven
point?
13. Suppose the fixed costs per unit decrease, what is the impact on the Breakeven
point?
© Copyright of Michael J. Meyer 2014. Use by permission only.
Joe is contemplating selling more than just Brats. In fact, he thinks that he should also sell
hamburgers and bottled water. He believes that he will sell 110 Brats, 85 hamburgers and 205
bottles of water. He expects to sell hamburgers for $4.50 each and bottles of water for $2.00
each. Below are the costs associated with each of these items:
Sales price per Hamburger
$ 4.50
Variable Costs (per unit):
Meat
Buns
Mustard
Ketchup
Cheese
Pickles
Total Variable Costs
$
$
$
$
$
$
$
Sales Price for Bottled Water
$ 2.00
Variable Cost (per bottle)
$ 0.53
1.51
0.47
0.05
0.10
0.28
0.18
2.59
PART 2: REQUIRED
14. Prepare a contribution margin income statement for each item to be sold and for
the company as a whole.
15. What is the weighted average Contribution Margin percentage (ratio)?
16. At the Breakeven point, what will SALES DOLLARS of ALL PRODUCTS will be?
17. At the Breakeven point, what will SALES DOLLARS of Brats will be?
18. At the Breakeven point, what will SALES DOLLARS Hamburgers will be?
19. At the Breakeven point, what will SALES DOLLARS Bottles of Water will be?
Excel Rules:
1. You must use the Excel Templates provided on the ACCT 20200 website
(www.acct20200.com). Note that each template is individualized for each student with
an ID code for each student. It will be assumed a Honor Code VIOLATION if you use a
template with someone else’s ID Code.
2. You must use Microsoft EXCEL and not any other spreadsheet program. Failure to use
MS Excel will result in a zero grade.
3. You must work individually on this assignment. Working with another student is a
violation of the Notre Dame Honor code and will be enforced when discovered.
4. You must use links and formulas where ever possible. Failure to exploit Excel will result
in a zero grade. There are only a couple of instances where typing numbers may be
necessary.
© Copyright of Michael J. Meyer 2014. Use by permission only.
5. You must sign your name to the honor code statement (the first sheet of the Excel
template). Failure to sign your name (by typing your name) will result in a zero grade.
6. You must name your Excel file as: last name first name Excel 2. Failure to name your
file in this exact syntax will result in a zero grade.
7. You must save your file as either an xls or xlsx file so that it can be read by your
instructor. Failure to turn in a file that is readable by your instructor will result in a zero
grade.
8. You must upload your completed template BEFORE the due date and time in order to
receive credit.
© Copyright of Michael J. Meyer 2014. Use by permission only.