ACCM 4100 Management Accounting Assignment- per month to obtain target profit

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ACCM 4100 Management Accounting Assignment

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Task:

Objective: The objective of this assignment is to effectively use spreadsheet software to provide costvolume-profit analysis

Required:

The assignment will need to be submitted electronically on the portal, via the moodle site

Calculate the following:

1) The Break-even point in trips per month

2) The Break-even point in dollars of revenue per month

3) Assuming a profit after tax requirement from the Helicopter trip business of $120,000 per year and a tax rate of 30%, calculate:

a) Trips required per month to obtain target profit

b) Revenue required per month to obtain target profit

Your manager has requested that the spreadsheet is easy to use for ‘What-if’ analysis – so she would like to be able to change some of the inputs to see the impact on the calculations above – for example, if the Helicopter were able to be rented more cheaply or the selling price was increased. Hence 3 Marks are allocated to ease of use and accuracy for ‘what-if’ analysis (which will also depend on the formulas used)

4) Answering briefly in words in excel, include some notes to your manager explaining the limitations of your analysis and the assumptions included in it.

ACCM 4100 Management Accounting Assignment

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ACCM 4100 Management Accounting Assignment