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# Williams Company: compute break even chart

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Please see the attached files. They include the instruction sheet and excel file (there are 2 sheets in this file).

COST-VOLUME-PROFIT (BREAK-EVEN)

Instructions and data to calculate break-even, target profit stated as before taxes and after taxes, under-performance losses for The Williams Company as well as preparing a break-even chart.

Instructions: You will need a small calculator to complete the assignment.

1) Enter your start time and remind yourself to keep track of the elapsed time.
2) Enter the appropriate amounts in the "yellow boxes" needed to calculate the various results. as we did in class. Enter the results in the "tan boxes"
3) Upon completing Sheet 1 of 2 sheets, you are to prepare a Break-even chart on Sheet 2, using the "line-drawing tool" at the bottom of the worksheet ("").
4) Print out this instruction sheet to remind yourself of the instructions.
5) When you are ready to begin, activate the worksheet link below to down-load the spreadsheet, where you will enter the required information and prepare the Break-even chart. When asked, Don't Update!
6) Enter your name on the first page of the spreadsheet in the box shown. Note: Failure to do so will cause your work not to be identified and no credit for the exam will be given.
7) When you are finished, save the spread sheet to the Drop Box with the title "Week 3: Class Assignment" and the assignment will be finished.

Requirements:

1) Record in the appropriate areas of the spreadsheet the correct values for
each designated "yellow" cell and each designated "tan" cell.
2) Prepare the Break-even chart from the information generated on Page 1,
Sheet 1 using the "line drawing tool" at the bottom of the sheet ("").
3) You must submit your answers two "work-days" prior to the next class session.

#### Solution Preview

Part 1: The Williams Company is planning to sell a garden tool set for \$25 a set. The company
expects a before tax return of 20 % on its investment of \$90,000. The direct materials and labor are expected
to run in total, \$15 per set. The company is in a 30% tax bracket. Fixed costs are estimated at \$50,000.

Question 1. What is their break-even point in units and dollars?
Deduct 1 for wrong amount Deduct 2 for wrong answer
Sale price Variable costs Contribution rate
\$25 \$15 \$10
Break-even: Fixed ...

#### Solution Summary

This solution is comprised of a detailed explanation to record in the appropriate areas of the spreadsheet the correct values for each designated "yellow" cell and each designated "tan" cell and prepare the Break-even chart from the information generated on Page 1, Sheet 1 using the "line drawing tool" at the bottom of the sheet ("").

\$2.19