1. Job Cost Card Direct Materials Per Cookie Per Job Flour $.01 $.39 Baking Soda $.01 $.02 Cocoa Powder $.03 $.99 Table Salt $.01 $.01 Butter $.04 $.29 Sugar $.01 $.26 Eggs $.01 $.17 Vanilla Extract $.01 $.09 Total Direct Materials: $3.27 Estimated Overhead : $3.27(D.M.) X $2 = $6.54 Direct Labour Per Job Mixer ($6.50/hr.) 8 Min. $.87 Baker ($6.50/hr.) 24 Min. $2.60 Packager ($5.50/hr.) 10 Min . $.91 Total Direct Labor $4.38 As per assumption of overhead, it is allocated at a rate of $2 for every $1 of labor cost. Total Labour cost $4.38 Total Overhead cost $4.38*2 = $8.76 2. Calculation of the overhead cost Those costs that are required to run a business are known as overhead cost. But they cannot be directly attributed to any specific business activity, product, or service. Thus, overhead costs do not directly lead to the generation of profits. Overhead is still necessary, since it provides critical support for the generation of profit-making activities. Examples of overhead are:  Accounting and legal expenses  Administrative salaries  Depreciation  Insurance  Licenses and government fees  Property taxes  Rent  Utilities Overhead costs tend to be fixed, which means that they do not change from period to period. Examples of fixed overhead costs are depreciation and rent. Less frequently, overhead varies directly with the sales level, or varies somewhat as the activity level changes. Actual Overhead Per Job Quality Control ($8/hr.) 5 Min $.67 Material Purchaser ($6.50/hr.) 15 Min. $1.62 Accountant ($8.50/hr.) 10 Min. $1.41 Marketer ($7.50/hr.) 10 Min. $1.25 Clean up ($5.50) 10 Min. $.91 Utilities $.25 Rent $1.48 Depreciation on baking and mixing items $.12 Actual Overhead: $7.71 Total Points Possible 40 Insufficient/Not Evident Progressing Competent Exemplary Earned Points TEAMWORK: Group writes a mission statement considering company mission, sales modality (storefront or online), target market, expansion plans, main products and area of operation. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 TEAMWORK: Group describes the long-range goals, strategies and objectives the company will pursue. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate. (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 TEAMWORK: Group determines company name. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations.. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 TEAMWORK: Group determines cookie specifications: Size, color, key ingredients, appearance, quantity and packaging. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 TEAMWORK: Group develops a recipe that fits with the mission, goals and specifications. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 Individually: Student creates a job cost card for their cookie and calculates cost per cookie, using prescribed overhead allocation rate. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations.. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 Individually: Student lists costs they will include in overhead. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 Transferrable Skills Diversity and Teamwork: Student writes a review of their team members' efforts. (3 Max Point Value) (0pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (2pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (3pts.) Students reflection on teamwork states the team was focused on the task most of the time, all members listened to each other, were effective and reliable, and helped polish and process the suggestions of team members. 3 Digital Fluency Group develops PowerPoint Presentation (2 Max Point Value) (0pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies. (1.5pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (2pts.) Students reflection on teamwork states the team was focused on the task most of the time, all members listened to each other, were effective and reliable, and helped polish and process the suggestions of team members. 2 Total Points __40____/___40___ Month Kilowatt hours Electric Cost Fixed Cost Variable cost January 1866 $230 $118 $112 February 1439 $202 $116 $86 March 1146 $197 $128 $69 April 1046 $190 $127 $63 May 996 $182 $122 $60 June 1760 $225 $119 $106 Calculation of electric cost per kilowatt hour Electric cost per kilowatt High cost- Low cost High Activity- Low activity 230-182 79.3931 1866-996 122.6069 48 870 0.055172414 Taking $ 0.06 as variable cost per kilowatt y = mx+ b 230 = .06*1866+b 230= 112+b 230-112= b 118 b fixed cost= 118 Variable cost 230-118 112 111.96 -118.04 Assuming Sales is $ 18 Particulars $ Amount $ Sales 18.00 Variable Cost: Cost of Goods Sold * 7.65 Overhead Cost 6.11 other variable cost 2.6 Total variable Cost 16.36 Contribution Margin 1.64 Fixed cost: depreciation 0.12 Rent 1.48 Other fixed cost Total Fixed Cost 1.60 Operating Profit 0.04 * Cost of Goods Sold= Direct material + Direct Labour $3.27+$4.38 7.65 Breakeven = Fixed cost / contribution per cookie 1.60/1.64 0.97561 taken as 1 Therefore number of cookies per day to be 1 In order to earn profit of $ 1000, no. of cookies to be sold is as follows Let no. of cookies to be sold be X Sales- Variable cost- Fixed cost = Net Profit 18 X- 16.36 X-1.60= $1000 18X-16.36X=$1000-$1.60 1.64X= 998.40 X= 998.40/1.64 X = 608.78 Therefore In order to earn proft of $ 1000, approx 609 cookies must be sold by the company Breakeven = Fixed cost / contribution per cookie Total Points Possible 20 Insufficient/Not Evident Progressing Competent Exemplary Earned Points Student classifies costs as variable, fixed or mixed, adding costs to their list as necessary. (3Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (2 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (3pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 3 Student prepares a daily contribution margin income statement based on cost card completed in Module 02, making realistic assumptions about fixed costs, sales level, and selling and administrative costs. Addresses what the contribution margin ratio is. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (3-4 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 Student calculates break-even in number of cookies per day, break-even in sales dollars per day, number of cookies to be sold to earn a daily profit of $1000, and addresses whether that seems realistic or not. (5 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate. (1-2 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (3-4pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (5 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 5 Transferrable Skills Digital Fluency: Student creates visually appealing Excel file including information given in the assignment. (3 Max Point Value) (0pts.) Excel file not visually appealing. Content was not included or incomplete, and/or extremely inaccurate. (1pts.) Excel file somewhat appealing. Content shows a basic understanding of key ideas, yet includes some inaccuracies (2pts.) Excel file is moderately appealing. Content meets criteria with minimal errors (3 pts.) Excel file is extremely appealing. Content meets or exceeds criteria 3 Critical Thinking Student prepares a high-low analysis of electric costs using given data. Addresses fixed cost of electricity, as well as variable cost of electricity. (4 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate. (1 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (2-3 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (4pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations 4 Total_20_/_20_ Total points_20_/_20_   Sensitivity Analysis and Cost-Volume-Profit Cost volume Profit (CVP) examination is utilized to decide how changes in expenses and volume influence an organization's working salary and net pay. In performing this investigation, there are a few suspicions made, including: 1. Variable expenses per unit are steady. 2. Complete altered expenses are steady. 3. Everything created is sold. 4. Expenses are influenced on the grounds that movement changes. 5. In the event that an organization offers more than one item, they are sold in the same blend. (http://www.investopedia.com, n.d.) Cookie Delight. CM Income Statement Alternative 1 Alternative 2 Alternative 3 Selling Price $ 38.00 $ 40.00 $ 34.00 Variable costs $ 32.00 $ 32.00 $ 32.00 Commissions 4.56 4.00 0.00 Contribution Margin $ 1.44 $ 4.00 $ 2.00 Unit sales 12,000 14,000 16,000 Total CM $17,280 $ 56,000 $ 32,000 Advertising costs 0 35,000 0 Net CM $ 17,280 $ 21,000 $ 32,000 Rank (net contribution margin) 1 2 3 Alternative Alternative 2 Alternative 3 Alternative 1 Alternative 2 is given rank 1 because profit before advertisement cost than other alternative. Although after advertisement cost alternative 3 rank 1 since its net CM is more than alternative 2. Solution 2 Expected sale in alternative 3 16,000 unit Expected profit $ 32,000 Actual sale 12,800 unit Expected profit $ 32,000 Add: variable cost 409,600 unit Total sale required $ 441,600 Sale price per unit $ 34.50 Since the number of unit has been decreased, so to attain same profit of $ 32,000,sale price per unit need to be increase Sale price per unit $ 35 Number of unit $ 12,800 Total sales $ 441,600 Less: variable cost $ 409,600 Profit $ 32,000 As the number of unit decreases profit being the same sale price per unit must increase. Here in alternative 3 16,000 unit expected fall down by 20% i.e. 12,800 unit. Being profit same of $32,000 sale price increases from $34 to $34.5. References (n.d.). Retrieved from http://www.investopedia.com: http://www.investopedia.com/terms/c/cost-volume-profit-analysis.asp Total Points Possible 20 Insufficient/Not Evident Progressing Competent Exemplary Earned Points Student draws a general supply chain and value chain for their company. (4 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (2-3 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (4 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations. 4 Student lists value and non-value added activities and costs for their company. (4 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (2-3 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (4 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations. 4 Student gives two examples of activities for each cost hierarchy category in Activity Based Costing and a cost driver for each activity. (4 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (2-3 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (4 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations. 4 Student explains how use of Lean and ABC might improve the efficiency within their organization. (4 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1 pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (2-3 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (4 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations. 4 Student addresses question of how backflush costing might improve efficiency. (2 Max Point Value) (0 pts.) Content was not included or incomplete, and/or extremely inaccurate (1pts.) Content shows a basic understanding of key ideas, yet includes some inaccuracies (1.5 pts.) Content meets criteria with minimal errors, is accurate and shows a clear understanding through appropriate examples and explanations. (2 pts.) Content meets or exceeds criteria, is accurate and shows an extraordinary understanding through rich examples and explanations. 2 Transferrable Skills Communication: Correct usage of English grammar and mechanics displayed. 2 Max Point Value) (0pts.) More than 10 errors in English grammar and mechanics observed. (1 pts.) 6-10 errors in English grammar and mechanics. (1.5 pts.) 3-5 errors in English grammar and mechanics. (2 pts.) 0-2 errors in English grammar and mechanics. 2 Total _20_/_20__   1. In order to expand the business, the Cookie Delights Company has agreed to provide a bid with an owner of a local car dealership. The bid is to provide for an order of 500 cookies for a special event in the community. In order to calculate the price that would be charged to the business owner for the entire project would be as follows:- No of units o be produced: 500 units Display cost = $200 Logo cost = $0.03 per unit Therefore, total cost would be: $215 would be the total cost for the whole event. After the presentation of the bid price, the buyer pays an amount equal to 85%. 2. Assuming the new price to be $200, then the owner has to pay $170 initially for the contract so that different shapes of car cookies can be made available to the client 3. & 4. Even if the Cookie Delight Company reduces their prices in order to increase the demand then also profit can be earned as the costs are minimal and the owner is willing to pay 85% of the amount so given. Suppose the new price is $200 still profit can be earned because the breakeven has been achieved at $200 n $15 is the variable cost which would not result in profit here. The revenue so earned shall be 500*215 = $107500 and the costs shall be $100000 resulting in a profit of $7500. 5. The job at reduced prices is taken only if breakeven point is reached and there is no loss for the Cookie Delight Company which would affect the company's prices and policies. Moreover the quality of products is to be maintained which would help in building the goodwill of the company. The sales so made would be considered as the lifeblood of every organization and it would also not affect the going concern concept of the entity (Social Triggers, 2016). References Social Triggers, (2016). Struggling to make more sales? Follow this 2 step formula.... Retrieved from http://socialtriggers.com/make-more-sales/ Criteria Points Bid is clear and in table form. OH costs may be included 7 Second cost analysis does not include fixed costs 6 Clear reasoning and support for decision to accept/reject 85% offer 5 Paper is organized, professional, and free of spelling and grammatical errors 2 Total 20 Solution to Question 1 and Question 2 Particulars Years 0 1 2 3 4 5 6 7 8 9 10 Initial Investment $ (800,000) Net Income $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 Add:- Depreciation $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 Net Cash Flow $ (800,000) $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 PV Factor (@12%) 1 0.892857143 0.797193878 0.711780248 0.635518078 0.567426856 0.506631121 0.452349215 0.403883228 0.360610025 0.321973237 PV of Cash Flow $ (800,000) $ 253,571 $ 226,403 $ 202,146 $ 180,487 $ 161,149 $ 143,883 $ 128,467 $ 114,703 $ 102,413 $ 91,440 NPV $ 804,663 IRR 34% 6 7 8 9 10 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 204,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 $ 284,000 0.506631121 0.452349215 0.403883228 0.360610025 0.321973237 $ 143,883 $ 128,467 $ 114,703 $ 102,413 $ 91,440 Solution to Question-3 Calculation of Pay-Back Period Years PV of Cash Flow Cumulative Cash Flow 0 $ (800,000) $ (800,000) 1 $ 253,571 $ (546,429) 2 $ 226,403 $ (320,026) 3 $ 202,146 $ (117,880) 4 $ 180,487 $ 62,607 5 $ 161,149 $ 223,756 6 $ 143,883 $ 367,640 7 $ 128,467 $ 496,107 8 $ 114,703 $ 610,810 9 $ 102,413 $ 713,223 10 $ 91,440 $ 804,663 Criteria Points NPV Correctly calculated 4 IRR correctly calculated 4 Pay Back correctly calculated 4 Accounting rate of return correctly calculated 4 Investment decision properly supported along with other considerations 2 Information presented in an organized and professional manner with no spelling or grammar errors. 2 Total 20 Criteria Points Mission is clearly stated 3 Strategies are properly classified in the 4 perspectives 5 Performance measures are appropriate for each strategy point 5 Departmental responsibility for each performance measure is appropriate 5 Presentation is clear, concise, and professional 1 Presentation is clear of spelling and grammatical errors 1 Total 20