Assignment Instructions/ Description
Cookie Business Final ProjectNow that your cookie business is well underway, you are going to use the knowledge that you havegained in this course to evaluate the financial information for the company. You will be creating a seriesof reports and analyzing the results using the templates provided to guide you through the project.The learning objectives of this project are as follows:1. Apply accounting concepts and standards to the creation of accounting information and reports.2. Analyze accounting information used to make strategic business decisions.3. Apply ethical behavior to accounting-related situations.4. Make business decisions based on analyzing accounting data. ACC 5301, Management Applications ofAccounting 3Using the Unit VII Final Project Template, prepare a four- to five-page written report (includingspreadsheets) with at least three scholarly sources. Your report will provide the following information:IntroductionPart 1: Based on the data presented in the Unit VII Spreadsheet Template in Excel (CMBreakeven tab):Calculate the contribution margin (CM) for each of the three products sold at the cookie business.Calculate the weighted average CM.Calculate the breakeven point.Complete your calculations by filling in the highlighted cells, and embed a copy of the completedspreadsheet into this report. Discuss the results based on your calculations as far as which type ofcookie you think is the most profitable, which has the highest CM, etc.Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab),complete the calculations listed below.Calculate the value of ending inventory under full or absorption costing.Calculate the value of ending inventory under variable costing.Complete your calculations by filling in the highlighted cells, and embed a copy of the completedspreadsheet into this report. Discuss the results, and comment on which method you think is morehelpful to managers and why.Part 3: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab),calculate the net increase or decrease in profit if they take the special order.Complete your calculations by filling in the highlighted cells, and embed a copy of the completedspreadsheet into this report. Discuss the results and comment on if you think the cookie business shouldtake on this special order of cookies for a wedding. Business has been slow the last few months, and theoffer is less than the usual selling price for the cookies.
As part of your discussion, include both quantitative (based on the numbers) and qualitative (not basedon numbers) factors that would go into the decision to take on the special order.Part 4: Based on the data presented in the Unit VII Spreadsheet Template in Excel (IRR tab), calculatethe internal rate of return (IRR) for the new equipment purchase.Complete your calculations by filling in the highlighted cells, and embed a copy of the completedspreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think thecookie business should accept or reject the purchase of the new equipment and why.Additional inform concerns you see with this type of transaction.Part 5: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab),calculate the cash receipts for the first quarter of this year.Complete your calculations by filling in the highlighted cells, and embed a copy of the completedspreadsheet into this report. Discuss your observations about the way cash is collected if the companyneeds $150,000 per month for expenses.Part 6: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab),complete the following calculations.Calculate the material variances.Calculate the labor variances.Complete your calculations by filling in the highlighted cells, and embed a copy of the completedspreadsheet into this report. Discuss your observations about the variances and ways to plan to improveany of the variances.ConclusionandRecommendationsSummarize the key observations that you have made about the cookie business based on thecalculations you have performed, and present any future recommendations.
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