Cinema Party Budget Activity Two
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This document provides instructions for a Year 7 Excel tutorial activity on creating a cinema party budget spreadsheet. Students are asked to create a separate "Radio Advertising" sheet to calculate the costs and ticket sales increases from advertising. They then update the main "Party Budget" sheet by adding rows and cross-referencing cells from the advertising sheet to modify the budget based on the advertising campaign choices. A video demonstration shows how to cross-reference between sheets and update formulas.
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Here are the steps to identify the fixed and variable costs:
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1) Calculate the total cost differences between output levels. This gives the variable cost per unit.
2) The y-intercept of the total cost line is the fixed cost.
3) Plot the total cost against output on a graph and draw the total cost line. The slope is the variable cost per unit and the y-intercept is the fixed cost.
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Complete the following questions on cost function 1.Write the.docx
Complete the following questions on cost function:
1.
Write the cost function resulting from your regression results. Include specific coefficients.
2.
Estimate the total, average, and marginal costs for a firm with a quantity sold of 60,000 units.
3.
Is a firm operating at the point identified in question 2 operating at a profit-maximizing level of output? How do you know? If they are not, should they expand or reduce quantity sold to move closer to the profit maximization level? Explain your reasoning.
4.
Estimate the average cost for a firm with a quantity sold of 70,000 units. Compare your answer with the answer to question #2 above. Does the manufacturer appear to have economies of scale? How do you know?
Please let me know if you can help, and make sure the calculations show on the spreadsheet.
The spreadsheet must be organized as follows:
·
Tab 2: Original data
·
Tab 5: Output and answers to questions for cost function (Copy the data necessary to the top of this spreadsheet before running the regression.)
Data
Total cost = sum of all costs of doing business
Q sold = the quantity sold (in units) that quarter
Q prod = the quantity produced (in units) that quarter
Q dem = the quantity demanded (in units) that quarter
Price = price per unit charged by the firm
Labor = # labor hours used in production in that quarter. For purposes of this assignment, assume that all labor hours are identical.
Capital Investment = the number of plants in operation that quarter. Assume for the sake of this project, that all plants are approximately equal in size and use of technology.
Advertising Expenses = dollars spent on advertising that quarter
Capital
Consumer
Advertising
TC
Qsold
Qprod
Qdem
Price
Labor
Invest
Income
Expenses
Qtr 1
$4,415,000
499,999
499,999
549,425
$9.25
50,000
5
$20,000
$150,000
Qtr 2
$5,186,644
587,236
587,236
714,993
$9.25
60,000
5
$20,600
$150,000
Qtr 3
$5,174,189
548,667
647,480
548,667
$9.75
70,000
5
$21,000
$125,000
Qtr 4
$7,282,201
766,297
667,484
833,521
$9.65
75,000
5
$21,200
$200,000
Qtr 5
$7,630,401
811,784
811,764
860,747
$9.90
85,000
6
$21,400
$200,000
Qtr 6
$6,971,144
697,396
828,822
697,396
$10.25
95,000
6
$22,000
$150,000
Qtr 7
$7,915,228
715,182
829,046
829,046
$11.50
100,000
6
$21,600
$325,000
Qtr 8
$6,901,834
764,199
769,903
769,903
$10.00
75,000
6
$21,600
$150,000
Qtr 9
$7,719,569
811,784
811,784
811,784
$10.05
85,000
6
$21,600
$225,000
Qtr 10
$4,011,162
425,280
656,281
656,281
$10.75
60,000
6
$21,200
$125,000
Qtr 11
$8,688,700
744,619
829,046
829,046
$11.76
100,000
6
$22,000
$400,000
Qtr 12
$8,780,822
673,009
1,106,471
1,103,171
$12.35
140,000
8
$22,000
$400,000
.
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- Net profit margin and return on capital are two common measures of profitability, calculated by comparing profit to sales or capital invested.
- Businesses can improve profitability by increasing prices, decreasing costs, or boosting sales volumes - though these strategies also carry risks if not implemented carefully.
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Complete the following questions on cost function 1.Write the.docx
Complete the following questions on cost function:
1.
Write the cost function resulting from your regression results. Include specific coefficients.
2.
Estimate the total, average, and marginal costs for a firm with a quantity sold of 60,000 units.
3.
Is a firm operating at the point identified in question 2 operating at a profit-maximizing level of output? How do you know? If they are not, should they expand or reduce quantity sold to move closer to the profit maximization level? Explain your reasoning.
4.
Estimate the average cost for a firm with a quantity sold of 70,000 units. Compare your answer with the answer to question #2 above. Does the manufacturer appear to have economies of scale? How do you know?
Please let me know if you can help, and make sure the calculations show on the spreadsheet.
The spreadsheet must be organized as follows:
·
Tab 2: Original data
·
Tab 5: Output and answers to questions for cost function (Copy the data necessary to the top of this spreadsheet before running the regression.)
Data
Total cost = sum of all costs of doing business
Q sold = the quantity sold (in units) that quarter
Q prod = the quantity produced (in units) that quarter
Q dem = the quantity demanded (in units) that quarter
Price = price per unit charged by the firm
Labor = # labor hours used in production in that quarter. For purposes of this assignment, assume that all labor hours are identical.
Capital Investment = the number of plants in operation that quarter. Assume for the sake of this project, that all plants are approximately equal in size and use of technology.
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Capital
Consumer
Advertising
TC
Qsold
Qprod
Qdem
Price
Labor
Invest
Income
Expenses
Qtr 1
$4,415,000
499,999
499,999
549,425
$9.25
50,000
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$20,000
$150,000
Qtr 2
$5,186,644
587,236
587,236
714,993
$9.25
60,000
5
$20,600
$150,000
Qtr 3
$5,174,189
548,667
647,480
548,667
$9.75
70,000
5
$21,000
$125,000
Qtr 4
$7,282,201
766,297
667,484
833,521
$9.65
75,000
5
$21,200
$200,000
Qtr 5
$7,630,401
811,784
811,764
860,747
$9.90
85,000
6
$21,400
$200,000
Qtr 6
$6,971,144
697,396
828,822
697,396
$10.25
95,000
6
$22,000
$150,000
Qtr 7
$7,915,228
715,182
829,046
829,046
$11.50
100,000
6
$21,600
$325,000
Qtr 8
$6,901,834
764,199
769,903
769,903
$10.00
75,000
6
$21,600
$150,000
Qtr 9
$7,719,569
811,784
811,784
811,784
$10.05
85,000
6
$21,600
$225,000
Qtr 10
$4,011,162
425,280
656,281
656,281
$10.75
60,000
6
$21,200
$125,000
Qtr 11
$8,688,700
744,619
829,046
829,046
$11.76
100,000
6
$22,000
$400,000
Qtr 12
$8,780,822
673,009
1,106,471
1,103,171
$12.35
140,000
8
$22,000
$400,000
.
1.12 using breakeven analysis to make decisions
This document discusses break-even analysis, which is used to make decisions by assessing the sales revenue needed to cover costs. It defines key terms like contribution, contribution per unit, break-even output, and margin of safety. Tasks guide the reader through calculating break-even points, constructing break-even charts, and using them to evaluate how changes in costs, prices, or sales would impact profits. The benefits of break-even analysis are that it allows assessment of viability, risk, and target setting through "what if" scenarios in a quick and easy way. However, it also has weaknesses if the information used is unreliable or if costs and sales don't behave as assumed.
COST-VOLUME-PROFIT (CVP) ANALYSIS
Marginal costing is a technique that uses the concept of marginal cost, which is the change in total cost from producing one additional unit. It involves separating total costs into fixed and variable costs. Contribution margin is the difference between selling price and variable cost per unit, and shows the amount available to cover fixed costs and generate profit. Cost-volume-profit (CVP) analysis examines how costs, revenue, and profit change with production volume. It can be used to determine the break-even point and plan production levels required to achieve profit targets. Managers use CVP to make decisions about pricing, production, investment, and financing.
Managerial accounting (1)
This document discusses costing methods and target costing. It provides examples to illustrate how target costing works. Target costing involves setting a target cost by subtracting the desired profit from the expected selling price. It aims to reduce costs while meeting quality standards. The document outlines the steps to calculate a target cost and discusses ways to close the gap between the current and target costs, such as simplifying production or using cheaper materials.
A2 economics revision workbook 2016
This document provides an overview and agenda for a one-day A2 economics revision workshop focusing on key concepts related to costs, revenues, business objectives, and competition. The workshop includes introductory content, interactive activities, and exam-style questions to help students improve their examination skills and techniques. Additional independent revision activities are also provided.
cost II chapter 1.pptx
This document provides an overview of cost-volume-profit (CVP) analysis, which is a tool used for planning and decision making. It examines an example of a business owner, Emma Frost, considering whether to rent a booth at a college fair to sell study packages. The document defines key CVP terms like contribution margin, break-even point, and how to use CVP analysis to determine the sales volume needed to achieve a target operating income or net income. It also discusses how CVP analysis can be used to evaluate decisions like whether to spend on advertising by analyzing the impact on sales and profits.
Business Break-Even Point Slideshare
How to Calculate a Business Break-Even Point Including calculcations. Very important to know if your business is making money or not.
Cozy Bookstore Case Study CLA2Variable upward can be dep
Cozy Bookstore Case Study CLA2
Variable upward can be depicted as those overheads that typically change straightforwardly corresponding and like the varieties in the particular creation exercises, cost drivers, some remarkable volume measures or deals movement (Schiff, 1987). The ramifications is that an increment or reduction in the expense causes a corresponding increment or abatement in the expense or volume driver. On a similar note, the variable expense change proportionately and comparatively to the results or the association's movement levels (Hasan, 2015). In such manner, variable expenses are commonly founded on the exercises given that an organization normally brings about them because of the action, work done or yield. This suggests that in the event that the association's result significantly increases, costs will likewise significantly increase (Largay, 1973). Also, shutting down an organization for quite a while, no factor costs will be caused.
Accepting that Green Valley produces noodle, the organization will require unrefined components like sugar, different flavors, salt, flour, sodium bicarbonate, vegetable oils, and starch (Fu, 2008). On a similar note, the organization will without a doubt enlist work and concentrated machines to settle the item. In this way, the item should be bundled in very much planned bundles (Hyun et al., 2011). In this case, variable costing includes direct costs, work and unrefined substances. The presumption here is that Green Valley should buy material per bundle at Rs 2. It additionally needs to cater for the work in view of the piece rate framework where they offer five rupees for every parcel. Also, the organization needs to cause different backhanded costs incorporate 10,000 rupees for the creation site's lease. Creation gear is supposed to deteriorate (Del Giudice et al., 2016) with 20,000 rupees. In addition, the publicizing costs are 20,000 rupees, with sales rep commission costing three rupees for every bundle. Then again, Green Valley intends to deliver 10,000 bundles and charges 25 rupees for every parcel.
Based on the above information;
Total variable costs of manufacturing each packet = Direct Expenses + Labor + Materials= 2 + 5 + 2= 9 rupees for each packet.
The Total variable cost for distribution and selling costs for each packet = Labelling and packaging + Commission paid to the salesmen.= 5 + 2 = 5 Rupees for every packet.
Total variable cost for the noodles = 14 Rupees each packet
Total fixed manufacturing cost = compensation + Depreciation + Rent= 20, 000 + 20, 000 + 10, 000= 50, 000 Rupees.
Total fixed distribution as well as selling cost = Warehouse rent + Advertising= 20, 000 + 10, 000 = 30, 000 Rupees.
Total fixed cost = 80, 000 Rupees.
Green Valley Corporation
Variable costing based income statement
Particulars
Amount
Amount
Sales Revenue (10, 000 * 25)
250, 000
Less: Variable Cost
Material for 2
10, 000
Labor for 5
50, 000
Sales commission for 3
30, 000
Direct exp ...
Term paper of Managerial Economics
The document provides a cost-benefit analysis report submitted by Israt Jahan to Nobinkhor Kundu of Southeast University. The 3-page report includes an introduction outlining the problem statement and objectives. It also includes sections on defining cost-volume profit analysis, calculating the breakeven point, objectives of CVP analysis, advantages and disadvantages of CVP analysis, and limitations of the analysis. Tables and charts are included to help explain key concepts.
Profit contribution analysis breakeven
This document discusses breakeven analysis and operating leverage. It defines breakeven analysis as a tool that uses fixed costs, variable costs, revenue and sales volume to determine the sales level needed for a business to break even. The document provides the breakeven formula and an example calculation. It then defines operating leverage as the ratio of a company's fixed costs to its variable costs, and provides an example calculation of operating leverage. Higher operating leverage means greater profits from increased sales but also greater risk from declining sales.
Unit V Assignment WorksheetThis worksheet is intended to help .docx
Unit V Assignment Worksheet
This worksheet is intended to help you develop the information you will use to complete your Unit V Essay. You are expected to include the completed table in your Unit V Essay. The additional questions after the tables are intended to help you formulate your ideas concerning what you will write in your essay.
Just completing this worksheet
does not constitute completing the Unit V Assignment. The information from the worksheet must be incorporated into your essay submission. Follow the instructions below.
Instructions:
1. Complete all parts of the Unit V Assignment Worksheet.
2. Answer the questions after the table; these will help you formulate your ideas for writing the essay part of your Unit V Assignment. You are expected to expand on these questions in your writing.
3. Include the tables and your question responses from the Unit V Assignment Worksheet as an appendix following the essay part of your Unit V Assignment.
On the next page, you are provided with a table showing the different levels of output for concession stand items that are possible as the number of workers used changes. Also included are the price of labor, the total fixed cost per day, and the average price of concession stand items. Using the information you learned from the textbook for this class as well as the information in the Unit V Lesson:
1. Complete the table below concerning concession stand topics.
2. Answer all of the questions listed below the table. As mentioned, doing this will help you when formulating your thoughts for the essay part of your Unit V assignment.
Round These Answers to the Nearest Whole Number
Round These Answers to the Nearest Penny
Output (Concession Stand Items)
Number of Workers Employed Per Day
Price of Labor Per Worker Per Day
Total Variable Cost of Labor
Total Fixed Costs Per Day
Total Cost Per Day
Average Price of Concession Stand Items
Total Revenue
Profit
Average Variable Cost
Average Fixed Cost
Average Total Cost
Marginal Cost
Marginal Revenue
0
0
$120
$2,000
$8.00
100
2
$120
$2,000
$8.00
400
4
$120
$2,000
$8.00
750
6
$120
$2,000
$8.00
900
8
$120
$2,000
$8.00
1,025
10
$120
$2,000
$8.00
1,125
12
$120
$2,000
$8.00
1,200
14
$120
$2,000
$8.00
1,250
16
$120
$2,000
$8.00
1,280
18
$120
$2,000
$8.00
1,290
20
$120
$2,000
$8.00
1,289
22
$120
$2,000
$8.00
1,280
24
$120
$2,000
$8.00
Questions: Use your responses to these questions to help you formulate ideas for writing your Unit V Essay.
Question 1: What is the level of profit that is made by Ruby Red Movie Theater if 2 workers are employed at the concession stand and only 100 items of output are produced (sold) at the concession stand?
Answer:
Question 1a: Should Ruby Red Movie Theater continue to operate the concession stand if only 100 concession stand items are being produced (.
SMRM MI Chapter 10 CVP Analysis
This document discusses concepts related to breakeven analysis and limiting factor analysis. It begins by defining cost-volume-profit (CVP) analysis and explaining how it helps understand the relationships between costs, volume, and profits. It then defines key CVP terms like contribution margin, contribution margin ratio, breakeven point, and margin of safety. Formulas for calculating these metrics are provided. The document also discusses CVP graphs and the assumptions of CVP analysis. Several problems are then presented to demonstrate calculating and applying CVP concepts. Finally, the concept of limiting factor analysis is introduced as analyzing how to maximize contribution from a constrained resource.
Grey and Neon Yellow Minimalistic Modern Blockchain Company Pitch Deck Presen...
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Project 7
1. The document analyzes the results of two digital marketing campaigns run by Udacity to promote enrollment in their Digital Marketing Nanodegree program. A display advertising campaign and a video advertising campaign were analyzed.
2. The display campaign had a positive ROI of $323.48 while the video campaign had a positive ROI of $370.39. For both campaigns, certain ads and keywords performed significantly better than others.
3. Suggestions are provided to optimize the campaigns including pausing underperforming ads and keywords, expanding successful keyword lists, and testing new creative content. Additional budget would be used focusing on top performing ads and keywords and improving creative content through testing.
cost_and_management_acc_accounting-manual
The document provides information about Colin Drury's sixth edition of the textbook "Cost and Management Accounting" including publishing details. It lists the publisher, editor, and production staff. The copyright information indicates the book was published in 2006 by Thomson Learning and that reproduction or transmission of the text is not permitted without prior permission from the publisher.
Business Pitch Deck.pptx
The document provides a template for a pitch deck, outlining sections to include such as an introduction, problem statement, solution, target market, competition, business model, team, roadmap, and call to action. It also lists criteria for a pitch competition, including evaluating pitches based on problem validation, product analysis, business model, business description, and presentation quality. The top scoring team will receive $5,000 in seed money to start their proposed project.
Management consultancy-chapter-26-and-35
The document discusses operational auditing and concepts related to evaluating organizational effectiveness and efficiency. It defines operational auditing as evaluating the effectiveness and/or efficiency of operations, with effectiveness referring to accomplishing objectives and efficiency meaning reducing costs without reducing effectiveness. Economy is defined as maximizing the use of limited resources to achieve goals. Examples of types of inefficiency include acquiring goods and services too costly, lack of bids for purchases, raw materials not being available when needed, duplication of employee efforts, and work being done that serves no purpose.
Similar to Cinema Party Budget Activity Two (20)
Complete the following questions on cost function 1.Write the.docx
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Cinema Party Budget Activity Two
- 1. Cinema Party Budget – Activty Two Year 7 – Excel Tutorial
- 2. Increase ticket sales With only 140 ticket sales your cinema party is making a loss of -£168.00. You must make a profit for the party to be successful and to impress the Chief Executive. Your fixed costs will not change and they are: Hire theatre Movie royalties Cleaners The total cost of workers is a variable cost, which means that it can change. Often, businesses have to spend more money to increase income.
- 3. Advertising Advertising is a great way to increase ticket sales. You are going to advertise on the radio. Each radio advert will cost £50 but a radio advert will increase ticket sales by 22. If two radio adverts were purchased the radio advertising will cost £100 but ticket sales will increase by 44 (and so on). You can only advertise five times in one week. (answer Q12 in your activity booklet)
- 4. Create the radio advertising table You are going to create the radio advertising campaign table in a separate sheet but in the same workbook as the Cinema Party Budget. Select Sheet 2. Right click Sheet 2 and select Rename. Name the sheet Radio Advert. Rename Sheet 1 and name it Party Budget.
- 5. Radio Advertising Campaign table Create the Radio Advertising Campaign table as shown below:
- 6. Add information to the table Complete the Radio Advertising Campaign table with the information that you recorded in your activity booklet. Look at Q12. Use appropriate formatting for your cells.
- 7. Example – radio advertising campaign table Here is an example of what your table might look like. (answer Q13 and Q14 in your activity booklet)
- 8. Modify the cinema party budget You have used a separate table to calculate the cost and ticket sale increase as a result of radio advertising. It is usually a good idea to use a separate tables for performing complex calculations. This is because: The model will be easier to read and understand. It is easier to extend the model to include more information and calculations. You may only be interested in the result of a calculation instead of all of the information that is used in the calculation.
- 9. Modify the cinema party budget Select the Party Budget sheet. Update the model to look like this: Insert rows and label
- 10. Video demonstration Watch the video demonstration and then have a go at completing the spreadsheet, adding formulae and updating existing formulae. The video demonstration will teach you: how to cross reference a cell in another sheet. to complete the Cinema Party Budget model by adding new formulae and updating existing formulae.