MY NUMBER 3

On Sheet 1:

Table 2 should use Fixed cost per month “$3 million (instead of $10) per month” because Project 2->Tab 2->Question #3 states that “The variable cost per unit is $10 and the fixed costs are $3 million per month.” Please correct the related numbers on Question 2 accordingly.

Question #2: “Marginal Contribution = Revenue – Variable Costs” is the correct formula you should use. 

Question #2: You should use the formula “Profit % = Profit / Revenue” when calculating Profit % for Total (in cell D70). Do not use ‘sum’ function at here. 

On Sheet 2: Please do not use “Total Fixed Costs (Millions- from Tab1)” which is inaccurate statement. For Question #1, you need to carefully read the assumptions which indicate that the Fixed Costs is allocated based on the number of boxes sold. For example, Total FC for Standard Boxes = (Volumes per year for Standard Boxes/Total Volume for both boxes) * Total FX = (108/126) * 156 =133.71. You need to correct all related calculations accordingly. 

Sheet 3:

For Question #1, Total Allocated costs (row 14) for Cost of Standard Boxes (Column H) should be the sum of the computed results in column H (=16.84). 

Your calculations for the Allocated cost per box are incorrect. For example, for Standard boxes, Allocated Cost per box = Total Allocated costs (16.84) / Number of boxes per year (108) = 0.16. Please correct your related calculations for both standard boxes and Deluxe boxes.

On Sheet 4: For Question #1, check "Fixed Costs" and "Contribution" numbers if you revised the costs on Sheet 3. They should be consistent. Revised other related questions caused by the above changes. 

Feedback Date

Feb 15, 2022 2:57 PM

Assignment

Project 3