Presentation to Investors
- In a detailed PowerPoint presentation (12 to 15 slides in length, plus speaker notes and an addendum), explain and defend your costing strategies (i.e., the
business plan created in your first and second milestones) and share your business’s performance to-date (i.e., the work from your third milestone). Be sure to effectively communicate to your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence.
Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course outcome (shown in brackets).
I. Introduce your presentation
- Outline your company’s profile, including its name, location, and mission and vision.
- Explain for your investors the purpose of the presentation. What do you plan to communicate, and why should your investors pay attention? In
other words, try to persuade your investors that the accounting information you are about to share is important. [ACC-202-03] - Explain and defend your methods for generating the information that you are about to share in terms of your adherence to industry standards
and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical? [ACC-202-03]
D. Specifically, be sure to illustrate how your managerial accounting methods support the mission of your organization, using examples. [ACC-202- 03]
- Financial Strategy: Review your original business plan and costing strategies using the prior-to-opening scenario information.
Justify your use of job order costing. Be sure to compare and contrast the various costing systems you learned about in this course as part of
your defense. [ACC-202-01]
Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit
analysis in your defense. [ACC-202-02]
Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your
defense. [ACC-202-02]
Explain and defend your contribution margin per unit and contribution margin ratio. Be sure to reference your cost-volume-profit analysis in
your defense. [ACC-202-02] - Financial Statements: Assess your financial performance to-date using the post-opening scenario information.
Financial Statements
Share the statement of cost of services and logically interpret the business’s performance against the provided benchmarks. [ACC-202- 02]
Share the income statement and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02]Variance Analysis
Identify all variances for the direct labor time and the materials price. [ACC-202-02]
Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. [ACC-202-02] - In an addendum, submit your completed workbook, including the following:
Accurately classify all of your costs in the “Cost Classification” tab. [ACC-202-01]
Conduct a cost-volume profit analysis:Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. [ACC-202-01]
Determine your break-even points for achieving your target profits in the “Break-even analysis” tab. [ACC-202-01]
1
ACC 202 Final Project Guidelines and Rubric
Overview
Successful entrepreneurs understand all aspects of business, especially costs and costing systems. Managerial accounting provides a framework for strategic
analysis and planning with regard to cost behaviors and costing systems. In this final project, you have the opportunity to act as an entrepreneur and apply
managerial accounting principles to evaluate and manage costs related to your products within a costing system. Additionally, you will demonstrate your ability
to communicate your findings effectively to internal stakeholders, just as an actual business owner would need to do.
Specifically, you will assume the role of the owner of a hypothetical small business. In your milestone work, you will develop financial strategies prior to opening
your business. For the final submission, you will create a presentation for your investors after your business has been in operation for a certain period of time.
You will use the provided scenarios to complete your project. The project is divided into three milestones, which will be submitted at various points throughout
the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Two, Four, and Five. The final product will
be submitted in Module Seven.
In this assignment, you will demonstrate your mastery of the following course outcomes:
ACC-202-01: Apply fundamental costing systems to optimize operations within a business
ACC-202-02: Assess financial performance to communicate financial planning strategies to internal stakeholders
ACC-202-03: Leverage fundamental managerial accounting methods to support the mission of an organization
Prompt
In a detailed PowerPoint presentation (12 to 15 slides in length, plus speaker notes and an addendum), explain and defend your costing strategies (i.e., the
business plan created in your first and second milestones) and share your business’s performance to-date (i.e., the work from your third milestone). Be sure to
effectively communicate to your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence.
Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course outcome (shown in brackets).
I. Introduce your presentation
A. Outline your company’s profile, including its name, location, and mission and vision.
B. Explain for your investors the purpose of the presentation. What do you plan to communicate, and why should your investors pay attention? In
other words, try to persuade your investors that the accounting information you are about to share is important.
[ACC-202-03]
C. Explain and defend your methods for generating the information that you are about to share in terms of your adherence to industry standards
and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your
decision-making process has been ethical? [ACC-202-03]
2
D. Specifically, be sure to illustrate how your managerial accounting methods support the mission of your organization, using examples. [ACC-202-
03]
II. Financial Strategy: Review your original business plan and costing strategies using the prior-to-opening scenario information.
A. Justify your use of job order costing. Be sure to compare and contrast the various costing systems you learned about in this course as part of
your defense.
[ACC-202-01]
B. Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit
analysis in your defense.
[ACC-202-02]
C. Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your
defense. [ACC-202-02]
D. Explain and defend your contribution margin per unit and contribution margin ratio. Be sure to reference your cost-volume-profit analysis in
your defense. [ACC-202-02]
III. Financial Statements: Assess your financial performance to-date using the post-opening scenario information.
A. Financial Statements
1. Share the statement of cost of services and logically interpret the business’s performance against the provided benchmarks. [ACC-202-
02]
2. Share the income statement and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02]
B. Variance Analysis
1. Identify all variances for the direct labor time and the materials price. [ACC-202-02]
2. Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. [ACC-202-02]
IV. In an addendum, submit your completed workbook, including the following:
A. Accurately classify all of your costs in the “Cost Classification” tab. [ACC-202-01]
B. Conduct a cost-volume profit analysis:
1. Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. [ACC-202-01]
2. Determine your break-even points for achieving your target profits in the “Break-even analysis” tab. [ACC-202-01]
Milestones
Milestone One: First Part of Workbook
In Module Two, you will submit the “Cost Classifications” and “Variable_Fixed” tabs in your provided final project workbook. This milestone will be graded with
the Milestone One Rubric.
3
Milestone Two: Second Part of Workbook
In Module Four, you will submit the “Contribution Margin Analysis” and “Break-even Analysis” tabs in your provided final project workbook. This milestone will
be graded with the Milestone Two Rubric.
Milestone Three: Final Workbook
In Module Five, you will submit “COS Schedule,” “Income Statement,” and “Variances” tabs in your provided final project workbook. This milestone will be
graded with the Milestone Three Rubric.
Final Submission: Presentation to Investors
In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final prompt. It should
reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric.
Deliverables
Milestone Deliverable Module Due Grading
One Cost Classification Tabs Two Graded separately; Milestone One Rubric
Two Financial Scope of the Business Plan Four Graded separately; Milestone Two Rubric
Three Draft Presentation to Investors Five Graded separately; Milestone Three Rubric
Final Submission: Presentation to Investors Seven Graded separately; Final Project Rubric
Final Project Rubric
Guidelines for Submission: Your PowerPoint presentation to investors must be at least 12–15 slides plus speaker notes, and all citations should follow APA
formatting. In addition, submit completed Excel workbook.
Critical Elements Exemplary Proficient Needs Improvement Not Evident Value
Introduce:
Company’s Profile
Meets “Proficient” criteria and
judiciously includes details
relevant to the target audience
of the presentation (100%)
Outlines the company’s profile,
including its name, location,
and mission and vision (85%)
Outlines the company’s profile
but fails to include its name,
location, and mission and vision
(55%)
Does not outline the company’s
profile (0%)
3
4
Introduce: Purpose
[ACC-202-03]
Meets “Proficient” criteria and
demonstrates nuanced
appreciation for the role of
managerial accounting in
ethically supporting the mission
of an organization (100%)
Explains the purpose of the
presentation, including a
persuasive case for the
importance of the accounting
information to be shared (85%)
Explains the purpose of the
presentation, but fails to fully
or persuasively make a case for
the importance of the
accounting information (55%)
Does not explain the purpose of
the presentation (0%)
7
Introduce: Defend of
Methods
[ACC-202-03]
Meets “Proficient” criteria and
demonstrates nuanced
appreciation for the role of
managerial accounting in
ethically supporting the mission
of an organization (100%)
Explains and defends the
methods for generating the
information in the presentation
in terms of their adherence to
industry standards and the
AICPA code of ethics (85%)
Explains the methods for
generating the information in
the presentation, but fails to
fully defend the methods in
terms of their adherence to
industry standards and the
AICPA code of ethics (55%)
Does not explain the methods
for generating the information
in the presentation (0%)
7
Introduce: Support
the Mission
[ACC-202-03]
Meets “Proficient” criteria and
demonstrates nuanced
appreciation for the role of
managerial accounting in
ethically supporting the mission
of an organization (100%)
Illustrates how the managerial
accounting methods support
the mission of the organization
using specific examples (85%)
Discusses how the managerial
accounting methods support
the mission of the organization,
but fails to fully or accurately
illustrate using specific
examples (55%)
Does not discuss illustrate how
the managerial accounting
methods support the mission of
the organization (0%)
7
Financial Strategy:
Costing Systems
[ACC-202-01]
Meets “Proficient” criteria and
demonstrates keen insight into
key cost behaviors and cost
systems (100%)
Justifies the use of job order
costing by comparing and
contrasting the various costing
systems covered in the course
(85%)
Discusses the use of job order
costing but fails to fully or
accurately justify its use by
comparing and contrasting the
various costing systems
covered in the course (55%)
Does not discuss the use of job
order costing (0%)
6
Financial Strategy:
Selling Prices
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates strategic ability
to propose costing solutions
supported by the financial data
(100%)
Explains and defends the selling
prices for grooming, day care,
and boarding by citing financial
data from the cost-volume-
profit analysis (85%)
Explains the selling prices for
grooming, day care, and
boarding, but fails to fully or
accurately defend each price by
citing financial data from the
cost-volume-profit analysis
(55%)
Does not explain the selling
prices for grooming, day care,
and boarding (0%)
8
Financial Strategy:
Target Profits
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates strategic ability
to propose costing solutions
supported by the financial data
(100%)
Explains and defends the target
profits for each area of the
business by citing financial data
from the cost-volume-profit
analysis (85%)
Explains the target profits for
each area of the business, but
fails to fully or accurately
defend each one by citing
financial data from the cost-
volume-profit analysis (55%)
Does not explain the target
profits for each area of the
business (0%)
8
5
Financial Strategy:
Contribution Margin
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates strategic ability
to propose costing solutions
supported by the financial data
(100%)
Explains and defends the
contribution margin per unit
and contribution margin ratio
by citing financial data from the
cost-volume-profit analysis
(85%)
Explains the contribution
margin per unit and
contribution margin ratio, but
fails to fully or accurately
defend each by citing financial
data from the cost-volume-
profit analysis (55%)
Does not explain the
contribution margin per unit
and contribution margin ratio
(0%)
8
Financial
Statements:
Statement of Cost of
Services
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates sophisticated
ability to evaluate critical
performance measures for
strategic planning (100%)
Shares the statement of cost of
services and logically interprets
the business’s performance
against the provided
benchmarks (85%)
Shares the statement of cost of
services, but there are
inaccuracies in the statement,
or the interpretation has gaps
in logic or fails to address the
provided benchmarks (55%)
Does not share the statement
of cost of services (0%)
6
Financial
Statements: Income
Statement
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates sophisticated
ability to evaluate critical
performance measures for
strategic planning (100%)
Shares the income statement
and logically interprets the
business’ performance against
the provided benchmarks (85%)
Shares the income statement,
but there are inaccuracies in
the statement or the
interpretation has gaps in logic
or fails to address the provided
benchmarks (55%)
Does not share the income
statement (0%)
6
Variance Analysis:
Identify
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates sophisticated
ability to evaluate critical
performance measures for
strategic planning (100%)
Accurately identifies all
variances for the direct labor
time and the materials price
(85%)
Identifies variances for the
direct labor time and the
materials price, but fails to fully
or accurately identify each
(55%)
Does not identify variances for
the direct labor time and the
materials price (0%)
6
Variance Analysis:
Significance of the
Variance
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates sophisticated
ability to evaluate critical
performance measures for
strategic planning (100%)
Evaluates the significance of
the variances in terms of their
potential to impact future
budgeting decisions and
planning (85%)
Evaluates the significance of
the variances, but fails to fully
or accurately identify their
potential to impact future
budgeting decisions and
planning (55%)
Does not evaluate the
significance of the variances
(0%)
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Addendum: Classify
Costs
[ACC-202-01]
Accurately classifies all costs in
the “Cost Classification” tab of
the workbook (100%)
Classifies costs in the “Cost
Classification” tab, but fails to
fully or accurately classify each
(55%)
Does not classify costs in the
“Cost Classification” tab of the
workbook (0%)
6
6
Addendum:
Contribution Margin
[ACC-202-01]
Determines the contribution
margin per unit and
contribution margin ratio in the
“Contribution Margin Analysis”
tab of the workbook (100%)
Determines the contribution
margin per unit and
contribution margin ratio in the
“Contribution Margin Analysis”
tab of the workbook, but fails
to fully or accurately complete
the analysis (55%)
Does not determine the
contribution margin per unit
and contribution margin ratio in
the “Contribution Margin
Analysis” tab of the workbook
(0%)
6
Addendum: Break-
Even Points
[ACC-202-01]
Determines the break-even
points for achieving the target
profits in the “Break-even
analysis” tab of the workbook
(100%)
Determines the break-even
points for achieving the target
profits in the “Break-even
analysis” tab of the workbook,
but fails to fully or accurately
complete the analysis (55%)
Does not determine the break-
even points for achieving the
target profits in the “Break-
even analysis” tab of the
workbook (0%)
6
Effective Business
Communication
[ACC-202-02]
Meets “Proficient” criteria and
demonstrates sophisticated
ability to effectively
communicate to internal
stakeholders (100%)
Main ideas are clearly
communicated and references
are properly cited throughout
the presentation (85%)
There are minor issues with the
communication of ideas or use
of citations that negatively
impact the effectiveness of the
presentation (55%)
There are critical errors in the
communication of ideas that
negatively impact basic
comprehension of the
presentation (0%)
3
Total 100%
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Appendix
Scenario: Prior to Opening, Part I: You plan to open a pet-services business that will offer dog grooming, day care, and boarding. You can be creative in deciding
the name of your business (e.g., “Inspiring Dog Care”), its geographical location (e.g., Chicago), and its mission and vision for adding value to the community. You
will be asked to make choices for a few other details to customize your case; otherwise, you should use the information below.
There are 12 kennels (single dog only) and the day care area can house 10 large dogs and 12 small dogs each day. The grooming facility is 200 square feet, the
boarding facility is 2,500 square feet, and the day care is 1,500 square feet. Your groomer can groom five dogs a day for five days a week; each groom consists of
1.5 labor hours. You also offer dog day care six days a week, and kenneling every day. You have taken out a loan for start-up costs and the monthly payment is
$420; it goes into effect immediately and should be accounted for in your costs. With limited cash contribution and loan funding, you located two angel
investors. You will collect a modest draw for the first year of $600 a month; remember to divide evenly among the services.
Note: For simplicity, base all calculations using 30 days in each month.
You estimate the following staffing needs:
A groomer who will be paid $12/hour and work 40 hours a week
A day care attendant who will be paid $9/hour and will work 22 eight-hour days per month
A receptionist who will be paid $8.50/hour and work 30 hours a week
A kennel attendant who will be paid $11.50/hour and will work 22 eight-hour days per month
A complete list of additional costs is provided below:
Food and water bowls: $3.59/unit
o Daycare: Two bowls last for every 75 dogs that attend daycare.
o Boarding: Two bowls last for every 100 dogs that are boarded; you need two bowls per kennel.
o Grooming: Each bowl lasts for 20 grooms and you need four bowls at all times.
Fencing for daycare area: $1,249; installation of fencing: $1,000
Dog grooming arm: $300
12 kennels: $9,500; depreciation is $80/month
Rent: $650/month; allocate based on square footage
Utilities/insurance: $600/month; allocate based on square footage
Grooming table: $900
Grooming tub: $2800
8
Heating system: $10,000; depreciation is $83/month; allocate based on square footage
Clippers: $136.99; can be used for 100 grooms
Shampoo: $103.96 per five-gallon pail, which can be used for 100 grooms
Cage bank: $2200 per set of 5
Salon Tuff Capri mobile carry cart: $90
Towels: $34.99 per 12 pack
o Day care: You need to have 12 towels for every 25 dogs.
o Boarding: You need to have 12 towels for every 40 dogs.
o Grooming: You need to have two towels for every groom per day.
Scissors: (1) 7-inch straight is $194.99, and (1) ear-and-nose is $7.49; each can be used for 200 grooms.
Toys: $3.29 per 6-pack; one toy will last for two dogs in day care, per day.
Cleaning products:
o Odoban: $14.55/gallon: Each area will dilute 1 oz to 1 gallon of water; allocate based on square footage.
o Simple Green: $15.66/gallon: each area will dilute 1 oz to 1 gallon of water; allocate based on square footage.
Dryer: $1250
Rubberized flooring for day care: $3800
Scenario: Prior to Opening, Part II: Your market research indicated the following price ranges as optimal for your area:
Dog Day Care
o With pricing at $18 per dog per day, you can expect to have 22 dogs per day.
o With pricing at $20 per dog per day, you can expect to have 15 dogs per day.
o With pricing at $25 per dog per day, you can expect to have 10 dogs per day.
Overnight Boarding
o With pricing at $25 per dog per day, you can expect to have 12 dogs per day.
o With pricing at $28 per dog per day, you can expect to have 10 dogs per day.
o With pricing at $30 per dog per day, you can expect to have 7 dogs per day.
Basic Groom
o With pricing at $25 per groom, you can expect to do 5 grooms per day.
o With pricing at $30 per groom, you can expect to do 4 grooms per day.
o With pricing at $35 per groom, you can expect to do 3 grooms per day.
Additionally, you need to compare your break-even points for the following target profits for each area of your business:
9
Day Care
o Break-even
o $417 target profit each month
o $667 target profit each month
Boarding
o Break-even
o $583 target profit each month
o $909 target profit each month
Grooming
o Break-even
o $1,000 target profit each month
o $1,500 target profit each month
Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the company’s
financial health. Therefore, you need to analyze your company’s performance over the last month using the data provided below.
Note: Your instructor will create an announcement sharing the income statement data by the end of Module Four. All of the data you need for the cost-of-
goods-manufactured statement can be found in the “COS Schedule” tab of your workbook.
For your variance analysis, use the following financial data:
Direct Materials/Labor Original Projection Actual
Shampoo 1000 ounces ($2/groom) 1200 ounces ($3/groom)
Grooming Labor 1.5 hrs/groom @ $12 2.25 hrs/groom @ $11.50
This document was exported from Numbers. Each table was converted to an Excel worksheet. All
other objects on each Numbers sheet were placed on separate worksheets. Please be aware that formula
calculations may differ in Excel.
Numbers Sheet Name Numbers Table Name Excel Worksheet Name
Table 1
Table 1 Table 1
Company Profile
Table 1 Company Profile
Cost Classification
Table 1 Cost Classification
Variable_Fixed
Table 1 Variable_Fixed
Milestone 2
Table 1 Milestone 2
Contribution Margin Analysis
Table 1 Contribution Margin Analysis
Break-Even Analysis
Table 1 Break-Even Analysis
Milestone 3
Table 1 Milestone 3
COS Schedule
Table 1 COS Schedule
Income Statement
Table 1 Income Statement
Variances
Table 1 Variances
Table 49
Table 1 Table 49
Table 50
Table 1 Table 50
Table 51
Table 1 Table 51
Table 52
Table 1 Table 52
Table 53
Table 1 Table 53
Sheet1
Table 1 Sheet1
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Southern New Hampshire University
College of Continuing Education (COCE) ACC202 – Managerial Accounting
MILESTONE 1 (Due in Module 2)
Instructions Milestone 1
1. Company Profile
Name Location Vision Mission
2. Cost Classification
Identify the following: Direct Materials Diret
Labor
Manufacturing Overhead Period Costs
3.
Calculate the Variable & Fixed Costs for: Grooming
Day Care Boarding
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Southern New Hampshire University
College of Continuing Education (COCE) ACC202 – Managerial Accounting
MILESTONE 2 (Due in Module 4)
Instructions Milestone 2
1. Contribution Margin
Choose a price range and calculate: Grooming
Day Care Boarding
2. Break-Even Analysis
Calculate the break-even units Grooming
Day Care Boarding
Calculate the break-even for target profi
t
s
Grooming Day Care Boarding
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Southern New Hampshire University
College of Continuing Education (COCE) ACC202 – Managerial Accounting
MILESTONE 3 (Due in Module 5)
Instructions Milestone 3
1. COGM Schedule
Create a Cost of Goods Manufactured Sch
2. Income Statement
Create an Income Statement
Revenue will be provided end of week 4
3. Variances
Calculate for the Grooming line: Direct Labor Time
Varia Direct Labor Rate Varia
Direct Materials Efficiency Variance
Direct Materials Price Variance
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MILESTONE 1 – Company Profile
Compnay Name : Paws Day Care & Grooming Location: Los Angeles
Vision : To be the best pet services businesses offering value-for-money services.
Mission: To provide high-quality, value-for-money, conitent services for pets.
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Paws Day Care & Grooming
MILESTONE 1 – Cost Classification Exercise
INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs.
Other costs have been provided for you.
The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapte
Item/Cost
Direct Material Direct Labor
Overhead
Groomer
x
Day care attendant x
Receptionist x
Kennel attendant x
Food and water bowls x
Depreciation on kennels x
Rent x
Utilties and insurance x
Grooming tub 48″
Depreciation on heating system x
Clippers x
Shampoo (Crystal Clear: five-gallon pail) x
Towels x
Scissors (7-inch straight, ear & nose) x
Toys (used in day care only) x
Cleaning products (used throughout) x
Dryer
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Paws Day Care & Grooming
MILESTONE 1 – Cost Classification Exercise
INSTRUCTIONS:
Putting an X in the appropriate spot, classify the costs highlighted in yellow as: Direct Material, Direct Labor, Overhead, or Period Costs.
Other costs have been provided for you.
The fixed and variable cost classifications have been provided for you. For more information see Objective 1 in Chapte
Period Costs Fixed Variable
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
x
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Paws Day Care & Grooming
MILESTONE 1 – Variable & Fixed Cost Exercise
INSTRUCTIONS:
Determine the per unit cost for each dog.
Fill in the blanks to get the per unit cost and fixed cost of each service.
Based on 5 grooms per day
GROOMING
Item Variable Costs Item Fixed Costs
Shampoo $ 1.04 Groomer $ 2,080.00
Clipper(s) 1.37 Rent 30.95
Bowls 0.72 Loan 20.00
Towels 5.83 Utilities and Insurance 28.57
Scissors 1.01 Depreciation on heating system 3.95
Cleaning Products: Odoban 2.08
Cleaning Products: Simple Green 2.36
Draw 200.00
Total Variable Costs $ 9.97 Total Fixed Costs $ 2,367.91
Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant.
DAY CARE
Item Variable Costs Item Fixed Costs
Day care attendant $ 2.88 Rent $ 232.14
Toys 0.27 Loan 150.00
Bowls 0.10 Utilities and Insurance 214.29
Towels 1.40 Depreciation on heating system 29.64
Cleaning Products: Odoban 15.59
Cleaning Products: Simple Green 16.78
Draw 200.00
Total Variable Costs $ 4.65 Total Fixed Costs $ 858.44
Based on 12 dogs per day. Assume 22 eight-hour work days for kennel attendant.
BOARDING
Item Variable Costs Item Fixed Costs
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Kennel attendant $ 5.62 Depreciation on kennels $ 80.00
Bowls 0.86 Rent 386.90
Towels 0.87 Loan 250.00
Utilities and Insurance 357.14
Depreciation on heating system 49.40
Cleaning Products: Odoban 25.98
Cleaning Products: Simple Green 29.55
Draw 200.00
Total Variable Costs $ 7.35 Total Fixed Costs $ 1,378.97
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HOME
Based on 22 dogs per day for six days a week. Assume 25 operating days for kennel and 22 eight-hour work days for kennel attendant.
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Southern New Hampshire University
College of Continuing Education (COCE) ACC202 – Managerial Accounting
INSTRUCTIONS FOR MILESTONE 2 (Due Week 4)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 2
Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7
ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs):
GENERAL
Use data from Milestone 1 in your analysi
CONTRIBUTION MARGIN ANALYSIS
Select a price for each service (grooming, day care, boarding Determine the variable cost from the Variable_Fixed tab for each servi
Calculate the contribution margin for each service based on your sales price and the variable cost for that serv
BREAK-EVEN ANALYSIS
Determine the fixed cost from the Variable_Fixed tab for each service Fixed & Variable cost designation is provi
Calculate the break-even units (round up) for each
Calculate the break-even units (round up) for suggested target profit levels for each servic
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Paws Day Care & Grooming
MILESTONE 2 – Contribution Margin per Unit & Contribution Margin Ratio
INSTRUCTIONS:
Select a price from the scenarios below and compute the contribution for each service based on your selected pric
Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1.
SCENARIO (choose one from each category): Dog Day Care
1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day.
2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day.
3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day.
Overnight Boarding
1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day.
2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day.
3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day.
Basic Groom
1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day.
2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day.
3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day.
DAY CARE BOARDING
Sales Price per Unit Variable
Cost per Unit
$ 18
4.65
$ 25
7.35
Contribution Margin $ 13.35 $ 17.65
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Paws Day Care & Grooming
MILESTONE 2 – Contribution Margin per Unit & Contribution Margin Ratio
INSTRUCTIONS:
Select a price from the scenarios below and compute the contribution for each service based on your selected pric
Variable cost per unit comes from your Variable_Fixed tab completed in Milestone 1.
SCENARIO (choose one from each category): Dog Day Care
1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day.
2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day.
3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day.
Overnight Boarding
1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day.
2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day.
3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day.
Basic Groom
1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day.
2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day.
3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day.
GROOMING
$ 25
9.97
$ 15.03
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Paws Day Care & Grooming
MILESTONE 2 – Break-Even Analysis
INSTRUCTIONS:
Show all steps and calculations to determine the break-even.
Determine the break-even for the target profit levels as outlined in the instructions.
Break-even = Fixed Costs / Contribution Margin
DAY CARE BOARDING
Sales Price $ 18 $ 25
Fixed Costs $ 858.44 $ 1,378.97
Contribution Margin $ 13.35 $ 17.65
Break-even Units (round up) 64 78
Target Profit $ 417.00 $ 583.00
Break-even Units (round up) 95 111
Target Profit $ 667.00 $ 909.00
Break-even Units (round up) 146 162
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Paws Day Care & Grooming
MILESTONE 2 – Break-Even Analysis
INSTRUCTIONS:
Show all steps and calculations to determine the break-even.
Determine the break-even for the target profit levels as outlined in the instructions.
Break-even = Fixed Costs / Contribution Margin
GROOMING
$ 25
$ 2,367.91
$ 15.03
157
$ 1,000.00
224
$ 1,500.00
324
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Southern New Hampshire University
College of Continuing Education (COCE) ACC202 – Managerial Accounting
INSTRUCTIONS FOR MILESTONE 3 (Due Week 5)
IMPORTANT NOTE:
Make sure to completely review the Rubric for Milestone 3
Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7
ITEMS TO COMPLETE FOR THIS MILESTONE (Purple Tabs):
GENERAL
Use data from Milestone 1 and Milestone 2 in your a
Revenue data needed for the Income Statement will be provided at the end of Mo
COST OF SERVICES PROVIDED SCHEDULE
Use the data at the top of the schedule to complete the repo
INCOME STATEMENT
Use the data at the top of the schedule to complete the repo Use the data from your Cost of Services Provided Sc
VARIANCES
Use the data at the top of the schedule to calculate the follo
Favorable / Unfa
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MILESTONE 3 – Statement of Cost of Services
INSTRUCTIONS:
The following are the actual numbers for January:
Materials
Purchased $5,000 of Materials Consumed 40% of those purchased ma
Direct Labor
Direct Labor was $6,240
Overhead
Overhead was $2,800
Paws Day Care & Grooming Statement of
Cost of Services
For the Month Ended January 31, xxxx
Beginning Work in Process Inventory 0
Direct Materials:
Materials – Beginning 0
Add: Purchases for month of January 5,000
Materials Available for Use 5,000
Deduct: Ending Materials 3,000
Materials Used 2,000
Direct Labor 6,240
Overhead 2,800
Total Service Costs $ 11,040
Deduct: Ending Work in Process Inventory 0 Cost
of Services $ 11,040
* Cost of Goods Sold = Cost of Services
There is no finished goods inventory to maintain.
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* Cost of Goods Sold = Cost of Services
There is no finished goods inventory to maintain.
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Paws Day Care & Grooming
MILESTONE 3 – Income Statement
INSTRUCTIONS:
Complete the Statement in proper form
Revenue will be provided in an Announcement at the end of Module 4 (based on actual number of
services for your pricing le
Additional Information necessary to complete the Income Statement:
General & Administrative Salaries paid = $1,200 Advertising = $100
Cleaning Products = $120 Depreciation = $83
Rent = $650
Loan = $420
Utilities & Insurance = $600
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Paws Day Care & Grooming Income
Statement
For the Month Ended January 31, xxxx
Revenue:
Grooming $ 5,000
Day Care 7,200
Boarding 3,750
Tota Revenue $ 15,950
Cost of Services * 11,040
Gross Profit $ 4,910
Expenses:
G&A Salaries $ 1,200
Advertising 100
Cleaning Products 120
Depreciation 83
Rent 650
Loan 420
Utilities and Insurance 600
Total Expenses $ 3,173
Net Income / Loss $ 1,737
* Cost of Goods Sold = Cost of Services
There is no finished goods inventory to maintain.
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Paws Day Care & Grooming
MILESTONE 3 – Variance Analysis
INSTRUCTIONS:
Prepare the variances and identify whether they are favorable or unfavorable. The below website will provide further
assistance with variances:
http://accounting-simplified.com/management/variance-analysis/material/price.html
DATA FOR VARIANCE ANALYSIS:
Standard Standard Actual Actual Hours / Qty Rate
Hours / Qty Rate
Grooming Labor 150 $ 12.00 180 $ 11.50
Grooming Materials 1,000 $ 2.00 1,200 $ 3.00
Favorable/
Variance Unfavorable
Groomer Direct Labor Time Variance
(Actual Hours – Standard Hours) x Standard Rate $ 360 Unfavorable
Groomer Direct Labor Rate Variance
(Actual Rate – Standard Rate) x Actual Hours $ 90 Favorable
Direct Materials Quantity/Efficiency Variance
(Actual Quantity – Standard Quantity) x Standard Price $ 400 Unfavorable
Direct Materials Price Variance
(Actual Price – Standard Price) x Actual Quantity $ 1,200 Unfavorable
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http://accounting-simplified.com/management/variance-analysis/material/price.html
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ACC202 – MANAGERIAL ACCOUNTING
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