Homework answers / question archive / Assessment Information Subject Code: ACCM 4100 Subject Name: Management Accounting 1 Assessment Title: Individual Excel Assignment (20%) Weighting: 20% Due Date: Monday of Week 11 – 28th September 2020 by 19:55 PM (AEST - Allow for time differences if required)

Assessment Information Subject Code: ACCM 4100 Subject Name: Management Accounting 1 Assessment Title: Individual Excel Assignment (20%) Weighting: 20% Due Date: Monday of Week 11 – 28th September 2020 by 19:55 PM (AEST - Allow for time differences if required)

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Assessment Information Subject Code: ACCM 4100 Subject Name: Management Accounting 1 Assessment Title: Individual Excel Assignment (20%) Weighting: 20% Due Date: Monday of Week 11 – 28th September 2020 by 19:55 PM (AEST - Allow for time differences if required). Electronic submission. . Assessment Description Learning Outcome 2: Formulate budgets and construct a cost-volume-profit analysis using practical scenarios 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. Please make sure you follow the guidelines noted in your subject outline especially those relating to the presentation of written work, late assignment policy and academic integrity. CASE STUDY USING EXCEL SPREADSHEET You work for Theo Walcott Tours Ltd which provide tourists and visitors with ‘experiences’ of Perth and its surrounds. Your manager is currently investigating introducing another product, which are ‘Luxury’ helicopter rides over beautiful bushland. Each trip would be 50km in total. Your manager wants you to use cost-volume-profit analysis in order to help assess the plan’s feasibility. She provides you with the following estimated data: Selling price per trip: $600 (total for 3 customers – trips only run with 3 customers) Costs: Fuel: $50 per trip Walcott ‘goodie bag’ per customer: $40 Helicopter rental per month: $20,000 Insurance per month (unlimited trips): $1,000 Pilot costs: $5,000 per month plus $100 per trip Maintenance costs are difficult to estimate but data from a similar company in a different location shows that these monthly costs were $11,000 when 5,000 kms were flown and $5000 when 1,500 kms were flown. ACCM 4100 Management Accounting 1 Trimester 2, 2020: Individual Excel Assignment REQUIRED: Calculate the following: 1) The Break-even point in trips per month (4 Marks) 2) The Break-even point in dollars of revenue per month (2 Marks) 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 (4 Marks) b) Revenue required per month to obtain target profit (2 Marks) 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. (3 Marks) 2 marks are allocated for the general presentation of the spreadsheet. Assignment Marking Sheet Allocated Marks Marks Awarded Comment 1 BEP in trips 4.00 2 BEP in dollars 2.00 3a Trips required for target profit 4.00 3b Revenue required for target profit 2.00 Ease of use for ‘What-if’ analysis 3.00 4 Limitations of analysis 3.00 Presentation 2.00 Total 20.00 Weighted Total 20.00 Lecturer’s Comment: Signature: ……………………………………………………………………... Date: …………