acctg assignment

Angie’s Empanadas: CVP and Cost Behavior 20 points

Tired of the corporate life Angie opened Angie’s Empanadas in on April 1st near a large

university campus. She had long been told that her empanadas were the best in town.

Angie sells three different types of empanadas, Peruvian, Argentinean and vegaterian as

appetizers, selling to local restaurants.

The empanadas are assembled in a rented kitchen, with the stuffing fully cooked, frozen

and then placed on trays in batches of eight. Currently all types sell for the same price. Each tray of 8 empanadas is priced

at $ See attached Spreadsheet.

Restaurants unwrap the tray and then heat the empanadas in an oven as an appetizer for

patrons. Angie rented a kitchen near her home. Angie does most of the preparation and

assembly herself but additional labor is hired as needed to help make the product. The

assembly is mostly by hand so labor is a relatively large part of the cost of the product.

Because the ingredients are organic and sometimes not readily available they are relatively

high cost as well. Angie relies on quality and excellent taste to differentiate her products but

is trying to keep the price low to gain a foothold in the market.

Angie’s realizes that the business will take time to be profitable so her short term goal is to

break even. By the end of the first year Angie would like to earn at least $4,000 a month.

The results of Angie’s first six months of operations are presented on the attached

spreadsheet. Prices are per tray so when determining per unit amounts use trays as the

basic unit.

By the way Yum!

Instructions for completing Angie’s Empandadas:

1. First open the spreadsheet named Names & IDnumbers

2. Input your name Last name first, then first name below the labels

3. Input your 9 digit (not dashes) Woodbury ID number one number in each space provided.

Each student has a different set of numbers based on your ID number. Using another

student’s ID number to complete the assignment will result in a zero for the assignment.

4. Open the spreadsheet Questionsfigures. You will find a table of figures showing the results of

operations for Angie’s Empanadas from April through September.

5. Use the figures as they appear after inputting your ID number. Please note that there are

numbers in place without entering your ID number. Do not use the unedited numbers. Using

these numbers will result in a zero for the assignment.

6. Provide the information as requested below the table and construct a detailed Variable-Costing

Income Statement for the period covered.

7. Put all answers in the areas next to the questions and show calculations using excel functions on

the same spreadsheet. Use regression analysis to find the components of mixed costs.

8. Don’t forget to answer the question below your Income Statement. Use your knowledge of

finance or marketing or management, and the details provided in the write up to answer this

question.

9. Save the spreadsheet with your name in the filename and submit via Moodle.

10. All work is to be done independently!