Instructions

Cookie Business Final Project

Now that your cookie business is well underway, you are going to use theknowledge that you have gained in this course to evaluate the financialinformation for the company. You will be creating a series of reports andanalyzing the results using the templates provided to guide you through theproject.

The learning objectives of this project are as follows:

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

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

Introduction

Part 1: Based on the data presented in the Unit VII Spreadsheet Template (attached below) in Excel (CM Breakeventab):

• Calculate the contribution margin (CM) for each of the three productssold at the cookie business.
• Calculate the weighted average CM.
• Calculate the breakeven point.

Complete your calculations by filling in the highlighted cells, and embed acopy of the completed spreadsheet into this report. Discuss the results basedon your calculations as far as which type of cookie you think is the mostprofitable, which has the highest CM, etc.

Part 2: Based on the data presented in the Unit VIISpreadsheet Template in Excel (Full Variable tab), complete the calculationslisted below.

• Calculate the value of ending inventory under full or absorptioncosting.
• Calculate the value of ending inventory under variable costing.

Complete your calculations by filling in the highlighted cells, and embed acopy of the completed spreadsheet into this report. Discuss the results, andcomment on which method you think is more helpful to managers and why.

Part 3: Based on the data presented in the Unit VIISpreadsheet Template in Excel (Special Order tab), calculate the net increaseor decrease in profit if they take the special order.

Complete your calculations by filling in the highlighted cells, and embed acopy of the completed spreadsheet into this report. Discuss the results andcomment on if you think the cookie business should take on this special orderof 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 based on numbers) factors that would go into the decisionto take on the special order.

Part 4: Based on the data presented in the Unit VIISpreadsheet 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 acopy of the completed spreadsheet into this report. Note: the PV Annuity tableis provided for you. Discuss if you think the cookie business should accept orreject the purchase of the new equipment and why.

Additional information has come to your attention regarding the equipmentpurchase. One of the partner’s brother owns the company that sells theequipment and insists the equipment is needed. Discuss any ethical concernsyou see with this type of transaction.

Part 5: Based on the data presented in the Unit VIISpreadsheet Template in Excel (Cash Budget tab), calculate the cash receiptsfor the first quarter of this year.

Complete your calculations by filling in the highlighted cells, and embed acopy of the completed spreadsheet into this report. Discuss your observationsabout the way cash is collected if the company needs $150,000 per month forexpenses.

Part 6: Based on the data presented in the Unit VIISpreadsheet Template in Excel (Variances tab), complete the followingcalculations.

• Calculate the material variances.
• Calculate the labor variances.

Complete your calculations by filling the in highlighted cells, and embed acopy of the completed spreadsheet into this report. Discuss your observationsabout 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 businessbased on the calculations you have performed, and present any futurerecommendations. Be sure to use APA 7th edition 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.