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**files (2)**
– ## 500895_PPMC_Excel_Spreadsheet5.zip
– Case1-PurchasePointMediaCorporationPPMC4.pdf
**## 500895_PPMC_Excel_Spreadsheet5.zip**
## Exam 500895 – PPMC Excel Spreadsheet.xlsx
## Step 2
| | | | | | | | | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Calculation of First Year Break Even Points | | | | | | | | | | | | | | | | | Calculation of First Year Break Even Points |
| | Note | | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | 1st | | 1st | 2nd | 3rd | 4th | 1st |
| | | | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year | | Qtr | Qtr | Qtr | Qtr | Year |
| Stores |
| Multiply by 200 carts |
| Total Carts |
| Multiply by Revenue per cart |
| Total Revenues | 1 | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Variable Costs (VC) |
| Amortization (2 year S/L)<br> <br>Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis. | 2 |
| Printing | 3 |
| Replacement (even distribution) | 4 |
| Cart Rental (10% Revenue) | 5 |
| Mktg. Sales & Comm. | 6 |
| Grocery Store Operations | 7 |
| Total VC | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Contribution Margin (CM) | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| CM per Unit/Cart | | | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! |
| Fixed Costs (FC) |
| Accounting & Audit | 8 |
| Advertising (even distribution) | 9 |
| Auto Lease | 10 |
| Bank Charges | 11 |
| Entertainment & Promotion | 12 |
| Insurance | 13 |
| Legal | 14 |
| Management Fees | 15 |
| Office & Sundry | 16 |
| Public Relations | 17 |
| Rent | 18 |
| Salaries & Benefits | 19 |
| Stationary & Printing | 20 |
| Telephone & Faxc | 21 |
| Travel & Accommodation | 22 |
| Total FC | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Total Expenses (VC + FC) | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Break Even Point in terms of carts | | | | | | | | | | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) |
| Break Even Point in terms of stores | | | | | | | | | | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Equation Method – Managerial Accounting, 15th ed., Page 201<br>Break Even = Q<br>Unit CM = CM / Total # of Stores<br>Profit = Unit CM x Q – Fixed Expense | | | | | | Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Equaion Method – Managerial Accounting, 15th ed., Page 201<br>Break Even = Q<br>Unit CM = CM / Total # of Stores<br>Profit = Unit CM x Q – Fixed Expense |
| Burcicki, Jim: Will cost 15k so I am assuming the expense is being accrued and therefore expensed in December as an adjusting entry. | Burcicki, Jim: The author expenses the 10k in January. However, it states that the 10k will be purchased during the first quarter – first three months – in sufficient quantities to last the entire year. This should be a prepaid and then expensed during the year. With no set amoutns, I assumed an even distribution throughout the year. | Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis. | | | | | | | | | | | | | | | Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) |
**Case1-PurchasePointMediaCorporationPPMC4.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/case1-purchasepointmediacorporationppmc4-pdf)
**Case1-PurchasePointMediaCorporationPPMC4.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/case1-purchasepointmediacorporationppmc4-pdf)
**## 500895_PPMC_Excel_Spreadsheet5.zip**
## Exam 500895 – PPMC Excel Spreadsheet.xlsx
## Step 2
| | | | | | | | | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Calculation of First Year Break Even Points | | | | | | | | | | | | | | | | | Calculation of First Year Break Even Points |
| | Note | | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | 1st | | 1st | 2nd | 3rd | 4th | 1st |
| | | | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year | | Qtr | Qtr | Qtr | Qtr | Year |
| Stores |
| Multiply by 200 carts |
| Total Carts |
| Multiply by Revenue per cart |
| Total Revenues | 1 | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Variable Costs (VC) |
| Amortization (2 year S/L)<br> <br>Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis. | 2 |
| Printing | 3 |
| Replacement (even distribution) | 4 |
| Cart Rental (10% Revenue) | 5 |
| Mktg. Sales & Comm. | 6 |
| Grocery Store Operations | 7 |
| Total VC | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Contribution Margin (CM) | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| CM per Unit/Cart | | | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! |
| Fixed Costs (FC) |
| Accounting & Audit | 8 |
| Advertising (even distribution) | 9 |
| Auto Lease | 10 |
| Bank Charges | 11 |
| Entertainment & Promotion | 12 |
| Insurance | 13 |
| Legal | 14 |
| Management Fees | 15 |
| Office & Sundry | 16 |
| Public Relations | 17 |
| Rent | 18 |
| Salaries & Benefits | 19 |
| Stationary & Printing | 20 |
| Telephone & Faxc | 21 |
| Travel & Accommodation | 22 |
| Total FC | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Total Expenses (VC + FC) | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Break Even Point in terms of carts | | | | | | | | | | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) |
| Break Even Point in terms of stores | | | | | | | | | | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Equation Method – Managerial Accounting, 15th ed., Page 201<br>Break Even = Q<br>Unit CM = CM / Total # of Stores<br>Profit = Unit CM x Q – Fixed Expense | | | | | | Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Equaion Method – Managerial Accounting, 15th ed., Page 201<br>Break Even = Q<br>Unit CM = CM / Total # of Stores<br>Profit = Unit CM x Q – Fixed Expense |
| Burcicki, Jim: Will cost 15k so I am assuming the expense is being accrued and therefore expensed in December as an adjusting entry. | Burcicki, Jim: The author expenses the 10k in January. However, it states that the 10k will be purchased during the first quarter – first three months – in sufficient quantities to last the entire year. This should be a prepaid and then expensed during the year. With no set amoutns, I assumed an even distribution throughout the year. | Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis. | | | | | | | | | | | | | | | Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) |
**Case1-PurchasePointMediaCorporationPPMC4.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/case1-purchasepointmediacorporationppmc4-pdf)
**## 500895_PPMC_Excel_Spreadsheet5.zip**
## Exam 500895 – PPMC Excel Spreadsheet.xlsx
## Step 2
| | | | | | | | | | | | | | | | | | | | | | | |
| — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Calculation of First Year Break Even Points | | | | | | | | | | | | | | | | | Calculation of First Year Break Even Points |
| | Note | | M1 | M2 | M3 | M4 | M5 | M6 | M7 | M8 | M9 | M10 | M11 | M12 | 1st | | 1st | 2nd | 3rd | 4th | 1st |
| | | | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Year | | Qtr | Qtr | Qtr | Qtr | Year |
| Stores |
| Multiply by 200 carts |
| Total Carts |
| Multiply by Revenue per cart |
| Total Revenues | 1 | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Variable Costs (VC) |
| Amortization (2 year S/L)<br> <br>Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis. | 2 |
| Printing | 3 |
| Replacement (even distribution) | 4 |
| Cart Rental (10% Revenue) | 5 |
| Mktg. Sales & Comm. | 6 |
| Grocery Store Operations | 7 |
| Total VC | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Contribution Margin (CM) | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| CM per Unit/Cart | | | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! | ERROR:#DIV/0! |
| Fixed Costs (FC) |
| Accounting & Audit | 8 |
| Advertising (even distribution) | 9 |
| Auto Lease | 10 |
| Bank Charges | 11 |
| Entertainment & Promotion | 12 |
| Insurance | 13 |
| Legal | 14 |
| Management Fees | 15 |
| Office & Sundry | 16 |
| Public Relations | 17 |
| Rent | 18 |
| Salaries & Benefits | 19 |
| Stationary & Printing | 20 |
| Telephone & Faxc | 21 |
| Travel & Accommodation | 22 |
| Total FC | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Total Expenses (VC + FC) | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Net Operating Income | | | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | | 0 | 0 | 0 | 0 | 0 |
| Break Even Point in terms of carts | | | | | | | | | | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) |
| Break Even Point in terms of stores | | | | | | | | | | | | | | | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Equation Method – Managerial Accounting, 15th ed., Page 201<br>Break Even = Q<br>Unit CM = CM / Total # of Stores<br>Profit = Unit CM x Q – Fixed Expense | | | | | | Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) | ERROR:#DIV/0!<br> <br>Burcicki, Jim: The Equaion Method – Managerial Accounting, 15th ed., Page 201<br>Break Even = Q<br>Unit CM = CM / Total # of Stores<br>Profit = Unit CM x Q – Fixed Expense |
| Burcicki, Jim: Will cost 15k so I am assuming the expense is being accrued and therefore expensed in December as an adjusting entry. | Burcicki, Jim: The author expenses the 10k in January. However, it states that the 10k will be purchased during the first quarter – first three months – in sufficient quantities to last the entire year. This should be a prepaid and then expensed during the year. With no set amoutns, I assumed an even distribution throughout the year. | Burcicki, Jim: While amortization in its normal sense would be considered a FC, it is considered a VC here because the number of carts is variable even though we are using an average of 200 carts as the basis. | | | | | | | | | | | | | | | Burcicki, Jim: The Formula Method – Managerial Accounting, 15th ed., Page 201<br>BE (Carts) = Total FC / (CM per Unit/Cart) |
**Case1-PurchasePointMediaCorporationPPMC4.pdf**
This file is too large to display. [View in new window](https://www.sweetstudy.com/files/case1-purchasepointmediacorporationppmc4-pdf)