This Week You Will Analyze And Classify the Costs Of Your Cookie Compa This week you will analyze and classify the costs of your cookie company and evaluate contribution margin. Review your Project Submission from Module 02 where you developed a cost card for your cookie and listed potential overhead costs. Create an Excel spreadsheet to classify your costs as variable, fixed, or mixed. Include both ecommerce and production facility costs, and consider adding overhead costs as needed. On the second tab, perform a high-low analysis of your electric costs using provided data to determine fixed and variable electricity costs. On the third tab, prepare a daily contribution margin income statement based on your cost card, making realistic assumptions about fixed costs, sales levels, and administrative expenses. Calculate the contribution margin ratio for your cookie. On the fourth tab, compute the break-even point in number of cookies sold per day and in sales dollars. Determine how many cookies must be sold daily to earn a $100 profit, and assess whether this figure is realistic.
Paper For Above instruction The purpose of this analysis is to provide a comprehensive financial overview of a cookie business by classifying costs, analyzing electricity expenses, calculating contribution margins, and determining break-even sales levels. This approach helps in understanding the profitability and financial sustainability of the business, guiding strategic decisions related to pricing, production, and cost control. **Classification of Costs** The first step involves classifying all relevant costs into variable, fixed, or mixed categories. Variable costs fluctuate directly with production volume, such as ingredients, packaging, and direct labor. Fixed costs remain constant regardless of sales, including rent, salaries of administrative staff, and insurance. Mixed costs contain both fixed and variable components, exemplified by electricity expenses, where a base charge is fixed, and usage-dependent charges vary with consumption. In this case, the overhead costs initially identified in the cost card likely included expenses such as utilities, depreciation, marketing, and administrative salaries. Overhead costs, especially utilities, often contain mixed elements, requiring detailed analysis to allocate fixed and variable components accurately. Accurate