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Unit VII Final Project
Instructions
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project.The learning objectives of this project are as follows:

Apply accounting concepts and standards to the creation of accounting information and reports.
Analyze accounting information used to make strategic business decisions.
Apply ethical behavior to accounting-related situations.
Make business decisions based on analyzing accounting data.

Using the  Unit VII Final Project Template , prepare a four- to five-page written report (including spreadsheets) with at least three scholarly sources. Your report will provide the following information:

Introduction
Part 1: Based on the data presented in the  Unit VII Spreadsheet Template in Excel (CM Breakeven 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 completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie 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 completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful 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 completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer 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 based on 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), calculate the 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 completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.Additional information has come to your attention regarding the equipment purchase. One of the partner’s brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical 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 completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs \$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 completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.

Conclusion and Recommendations
Summarize the key observations that you have made about the cookie business based on the calculations you have performed, and present any future recommendations.Be sure to use APA formatting throughout, and reach out to the Writing Center or the Library for assistance with research, writing, and formatting. Include at least two resources from the CSU Online Library in your report.1
5

Title of the Paper Goes Here

Student Name
Institution
ACC 5301 Management Applications of Accounting
Instructor
Date

Abstract

The abstract
is an overview of the paper, written after completion. Other researchers use the abstract to determine if your work will be useful to them. The abstract should include the background, hypothesis or research question, methodology for data collection and analysis, the findings of your research, and conclusions. It should be between 100–150 words. This is done when the paper is complete.

Title of Paper

Remember this part of the paper is double spaced in APA format.
The
Introduction should lead readers into the topic and its importance. Introductions typically include the overall topic of the paper, the specific focus of the paper within the larger topic, the main points in the paper, the kind of paper (study, argument, critique, discussion), and the purpose.

Writing tip: The length of the introduction should be in proportion to the length of the paper. Also ask yourself, “With my purpose and my audience, how do I engage my readers best?” In the introduction, you set the tone of the piece, establish your voice, and demonstrate your writing style; be authentic to your purpose and your audience.

Part 1 Contribution Margin/Breakeven

Part 2 Full and Variable Costing

Part 3 Special Order

Part 4 Internal Rate of Return

Part 5 Cash Budget

Part 6 Material and Labor Variance

Conclusions and Recommendations

The conclusion
section
should summarize for the readers the topics of importance that led to your final conclusions/analysis regarding this case. Include some specific areas of focus from your analysis to reinforce your conclusion.

References

Include complete references in proper APA format for all of the citations
listed in your paper. Be sure to use the library for the required number of sources. Additional sources can be used but should be scholarly. Present your references in alphabetical order.CM Breakeven

Chocolate Chip
Sugar
Specialty
Total

Units Sold
1,500,000
980,000
300,000
2,780,000

Sales
\$ 1,875,000.00
\$ 882,000.00
\$ 1,050,000.00
\$ 3,807,000.00

Less: Variable Costs
\$ 690,000.00
\$ 205,800.00
\$ 81,000.00
\$ 976,800.00

Contribution Margin
\$ 1,185,000.00
\$ 676,200.00
\$ 969,000.00
\$ 2,830,200.00

Less: Common Fixed Costs

\$ 125,000.00

Profit

\$ 2,705,200.00

Per item Contribution Margin

Weighted Average Contribution Margin

Break-even point in units

Full Variable

Productions Costs:

Direct material
\$ 0.60

Direct labor
\$ 1.00

\$ 0.40

Total variable manufacturing costs per unit
\$ 2.00

\$ 139,000.00

Fixed selling costs per year
\$ 50,000.00

\$ 65,000.00

\$ 3.75

2,780,000

2,600,000

Full (absorption) costing :

Full cost per unit

Ending Inventory Full (absorption) costing

Variable costing :

Variable cost per unit

Ending Inventory Variable costing

Special Order

1,000

\$ 2.75

\$ 3.75

Cost of special printed design per cookie
\$ 0.50

Cost of tool needed to make the design
\$ 100.00

Revenue for special order

Costs for special order:

Design cost

Tool cost

Total Variable Manufacturing Cost

Net profit

IRR

As the owner of the Cookie Business, you are considering the following investment:

PV of Annuity Table

Purchase of new equipment
\$ 250,000.00

n
1%
2%
3%
4%
5%
6%
8%
10%
12%

Expected annual increase in sales
\$ 48,017.50

1
0.9901
0.9804
0.9709
0.9615
0.9524
0.9434
0.9259
0.9091
0.8929

Time frame
7
years

2
1.9704
1.9416
1.9135
1.8861
1.8594
1.8334
1.7833
1.7355
1.6906

Acceptable rate needed
9%

3
2.941
2.8839
2.8286
2.7751
2.7233
2.673
2.5771
2.4869
2.4018

4
3.902
3.8077
3.7171
3.6299
3.546
3.4651
3.3121
3.1699
3.0374

Calculate the Internal Rate of Return:

5
4.8534
4.7135
4.5797
4.4518
4.3295
4.2124
3.9927
3.7908
3.6048

PV of annuity factor

6
5.7955
5.6014
5.4172
5.2421
5.0757
4.9173
4.6229
4.3553
4.1114

Internal rate of return

7
6.7282
6.472
6.2303
6.0021
5.7864
5.5824
5.2064
4.8684
4.5638

8
7.6517
7.3255
7.0197
6.7327
6.4632
6.2098
5.7466
5.3349
4.9676

Accept or reject

9
8.566
8.1622
7.7861
7.4353
7.1078
6.8017
6.2469
5.759
5.3283

10
9.4713
8.9826
8.5302
8.1109
7.7217
7.3601
6.7101
6.1446
5.6502

11
10.3676
9.7869
9.2526
8.7605
8.3064
7.8869
7.139
6.4951
5.9377

12
11.2551
10.5753
9.954
9.3851
8.8633
8.3838
7.5361
6.8137
6.1944

13
12.1337
11.3484
10.635
9.9857
9.3936
8.8527
7.9038

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