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Module 5 Excel Exercise

Kiana evaluated the profitability of her venture, 'Donuts to Go' and 'Muffins to Go', using financial data to determine breakeven points, contribution margins, and profit goals. The breakeven point for Donuts to Go is approximately 847.33 units, while for Muffins to Go it is about 1176.10 units. Additionally, the crossover point between selling donuts and muffins is around 2714.29 units with a profit of approximately 12228.57.

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28 views12 pages

Module 5 Excel Exercise

Kiana evaluated the profitability of her venture, 'Donuts to Go' and 'Muffins to Go', using financial data to determine breakeven points, contribution margins, and profit goals. The breakeven point for Donuts to Go is approximately 847.33 units, while for Muffins to Go it is about 1176.10 units. Additionally, the crossover point between selling donuts and muffins is around 2714.29 units with a profit of approximately 12228.57.

Uploaded by

kyanhhuynh61
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Profit Model Break Even and Cross over point

Based on the data she had collected Kiana wanted to evaluate how profitable or risky her venture could be. The Excel sheet
contains the financial information she gathered along with assumptions. It also contains a set up format for the profit calculati

You must also complete the following data sheets (te


Donuts to Go:
1. What is the breakeven point for Donuts to Go (assume each customer buys one donut and one coffee)?
Solve using the equation and by graph
847.328244274809

2. Using Goal seek, if you want to achieve profit of $2000, how many donuts and coffee do you need to sell?
1152.67175572519

3. What is the contribution margin of each sale of a Coffee and Donut?


6.55

4. What is the Profit at the break even?


Solve by equation and by graph
0

Muffins to Go:
5. What is the breakeven point for Muffins to Go (assume each customer buys one muffins and one coffee)?
Solve by equation and by graph
1176.10062893082

6. What is the contribution margin of each sale of a Coffee and Muffins?


7.95

7. What is the Profit at the break even? Solve by Graph


0

8. Using Goal seek, if you want to achieve profit of $4000, how many muffins and coffee do you need to sell?
1679.24528301887

Kiana also was wondering if instead of donuts she should sell muffins. She thought that selling the muffins for a higher price,
however it has more upfront costs. Using this information create a graph of the crossover point for the two alternatives. Usin
this spreadsheet answer the following questions. (assume each customer buys one muffin and one coffee)
9. What is the cross over point for the two alternatives? (solve by equation and confirm on graph). Enter quantity in cell be
round to two decimal places
2714.28571428571

10. What is the Profit at the cross over point?(solve by equation and confirm on graph) Enter profit in cell below round to t
decimal places
12228.5714285714

LOAD YOUR completed excel file to icollege folder for this module
name Kyanh Huynh

(templates) to get credit


Donut Information
Based on the below data, create the profit model for Donuts to Go.
Assume that each customer will buy one donut and one cup of coffee
Sales estimate range from 200-5000 per week

Profit Model Label expenses


Revenue: Cup of Coffee Rev: Coffee $4.00
Revenue: Donut Rev: Donut $3.50

Donut ingredients per donunt) Variable Expense: Donut $0.60

paper products: napkins, plates etc Variable Expense: Donut


Insurance Fixed Expense $200.00

Maintenance & Repairs to equipment Fixed Expense $0.00


Marketing & Promotion: Advertising Fixed Expense $50.00
Variable Expense:
Coffee Coffee $0.25
Variable Expense:
Coffee cups Coffee $0.10
Payroll: Wages (Owner/ Manager) Fixed Expense $2,500.00
Payroll: Wages (per Employees) Fixed Expense $1,000.00
Donut and Coffee equipment rent Fixed Expense $500.00
Professional Fees: Accounting Fixed Expense $50.00
Professional Fees: Legal Fixed Expense $25.00
Powdered and Liquid Beverages Fixed Expense $0.00
Rent Fixed Expense $1,000.00
Previous research expense for Donuts
advancements sunk cost $1,500.00
Supplies: Office Fixed Expense $25.00
Utilities Fixed Expense $200.00

Muffins to Go
Assume that each customer will buy one muffin and one cup of coffee
Sales estimate range from 200-5000 per week

Muffin Financial Information


Profit Model Label Expenses
Revenue: Cup of Coffee Rev: Coffee $4.00
Revenue: Muffin Rev: Muffin $5.50
Variable Expense:
Muffin ingredients (per muffin) Muffin $1.20
Variable Expense:
paper products: napkins, plates etc Muffin
Insurance Fixed Expense $500.00

Maintenance & Repairs to equipment Fixed Expense $0.00


Marketing & Promotion: Advertising Fixed Expense $250.00
Variable Expense:
Coffee Coffee $0.25
Variable Expense:
Coffee cups Coffee $0.10
Payroll: Wages (Owner/ Manager) Fixed Expense $2,500.00
Payroll: Wages (per Employees) Fixed Expense $1,000.00
Muffin and Coffee equipment rent Fixed Expense $2,500.00
Professional Fees: Accounting Fixed Expense $50.00
Professional Fees: Legal Fixed Expense $25.00
Powdered and Liquid Beverages Fixed Expense $0.00
Rent Fixed Expense $2,000.00
Previous research expense for Muffin a sunk cost $2,000.00
Supplies: Office Fixed Expense $25.00
Utilities Fixed Expense $500.00
one cup of coffee

Fixed Cost TSP VCC VCD TVC CM


$5,550.00 $7.50 $0.35 $0.60 $0.95 $6.55
FC/CM

Profit Model Label Sum of expenses 847.328244274809

Fixed Expense $5,550.00


Rev: Coffee $4.00
Rev: Donut $3.50
sunk cost $1,500.00
Variable Expense: Coffee $0.35

Variable Expense: Donut $0.60

Total Result $7,058.45

one cup of coffee

Fixed Cost TSP VCC CM


$9,350.00 $9.50 $1.55 $7.95

Profit Model Label Sum of Expenses BreakEven Fixed costs/contribution margin


Fixed Expense $9,350.00 1176.10062893082
Rev: Coffee $4.00

Rev: Muffin $5.50


sunk cost $2,000.00
Variable Expense: Coffee $0.35
Variable Expense: Muffin $1.20
(empty)

Total Result $11,361.05


coss over point: (FC1-FC2)/(CM1-CM2)

$2,714.29

Profit at pross over point


CM1*Cross over point(x)-FC1
$12,228.57

ution margin
DTG
Quantity sold
0 500 1000 1500 2000 2500
Revenue
coffee 0 2000 4000 6000 8000 10000
donut 0 1750 3500 5250 7000 8750
Total Revenue 0 3750 7500 11250 15000 18750

Fixed Expenses 5550 5550 5550 5550 5550 5550


Total Fixed Expense 5550 5550 5550 5550 5550 5550

Variable Expenses
Coffee Variable expense 0 175 350 525 700 875
Donut Variable expense 0 300 600 900 1200 1500
Total VariableExpenses 0 475 950 1425 1900 2375
Total Expenses 5550 6025 6500 6975 7450 7925

Profit Donuts and Coffee -5550 -2275 1000 4275 7550 10825
3000 3500 4000 4500 5000 1152.672

12000 14000 16000 18000 20000 4610.687


10500 12250 14000 15750 17500 4034.351
22500 26250 30000 33750 37500 8645.038

5550 5550 5550 5550 5550 5550


5550 5550 5550 5550 5550 5550

1050 1225 1400 1575 1750 403.4351


1800 2100 2400 2700 3000 691.6031
2850 3325 3800 4275 4750 1095.038
8400 8875 9350 9825 10300 6645.038

14100 17375 20650 23925 27200 2000


MTG
Quantity sold
0 500 1000 1500 2000 2500
Revenue
coffee 0 2000 4000 6000 8000 10000
Muffins 0 2750 5500 8250 11000 13750
Total Revenue 0 4750 9500 14250 19000 23750

Fixed Expenses 9350 9350 9350 9350 9350 9350


Total Fixed Expense 9350 9350 9350 9350 9350 9350

Variable Expenses

Coffee Variable expense 0 175 350 525 700 875


Muffin Variable expense 0 600 1200 1800 2400 3000

Total VariableExpenses 0 775 1550 2325 3100 3875


Total Expenses 9350 10125 10900 11675 12450 13225

Profit Muffin and Coffee -9350 -5375 -1400 2575 6550 10525
3000 3500 4000 4500 5000 1679.245

12000 14000 16000 18000 20000 6716.981


16500 19250 22000 24750 27500 9235.849
28500 33250 38000 42750 47500 15952.83

9350 9350 9350 9350 9350 9350


9350 9350 9350 9350 9350 9350

1050 1225 1400 1575 1750 587.7358


3600 4200 4800 5400 6000 2015.094

4650 5425 6200 6975 7750 2602.83


14000 14775 15550 16325 17100 11952.83

14500 18475 22450 26425 30400 4000

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