1 - In the excel template provided, on the first tab of the spreadsheet, classify your costs as variable, fixed, or mixed, with at least a total of 15 various costs
Note: Now that you have a more robust understanding of cost accounting you may need to add some overhead costs to your list. Think about both the delivery costs as well as the production facility costs.
2 - On the second tab, prepare a high-low analysis of your electric costs and heating costs using the data provided. What is your fixed cost of electricity & heat? What is the variable cost of electricity & heat?
3 - On the third tab, prepare a daily contribution margin income statement based on your cost card from Module 01. Input these costs on the tab for supporting documentation.
4 - Also list all your assumptions on the third tab about your fixed costs, sales level, selling and administration costs.
5 - Calculate the contribution margin ratio on the third tab.
6 - On the fourth tab, calculate the break-even in number of pizzas per day. What is the break-even in sales dollars each day? How many products must you sell to earn a daily profit of $2500? Does this seem realistic?