# I need these corrections made from my teacher feedback

Learning Goal: I’m working on a business question and need an explanation and answer to help me learn.

Markanthony,

Thank you for this milestone submission for Project 3. As a milestone, it won’t be graded. Your step 5 submission will be graded. You are allowed 1 milestone submission for each Project. A reminder: Competency 3.4 requires the use of software applications to analyze data. It states specifically: “3.4: Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.” You have not always used Excel to analyze this data, but rather as a receptacle for text, much like a word processor. It is important to use Excel and its functions to complete all the worksheets. If you don’t use Excel, I cannot see why something is incorrect. You struggled on this milestone, here is the feedback.

Tab 1

1. Table 1 Standard Box is incorrect:
1. Variable Cost per Standard Box is always \$10.
2. Fixed Cost per month is always \$10.
3. Annual VC would be Variable Cost (Column E) times 12
2. Table 2 Deluxe Box is incorrect:
1. Variable Cost per Deluxe Box is always \$20.
2. Fixed Cost per month is always \$3.
3. Revenues for both boxes are incorrect. It should be the Annual Revenue for the Number of Boxes Per Month equal to the level indicated in the problem (9M for Standard and 1.5M for Deluxe)
4. Variable Costs for both boxes are incorrect. It should be the Annual VC for the Number of Boxes Per Month equal to the level indicated in the problem (9M for Standard and 1.5M for Deluxe)
5. Fixed Costs for both boxes are incorrect. It should be the Annual FC for the Number of Boxes Per Month equal to the level indicated in the problem (9M for Standard and 1.5M for Deluxe)
6. The Operating Profit for both boxes is incorrect, however it has the correct formula and should self-correct
7. Operating Profit % for both types of Boxes are incorrect, however it has the correct formula and should self-correct

Tab 2 – the following for both types of boxes are incorrect:

1. Calculate how much fixed costs are allocated to each product the formula is incorrect. Multiply the calculated portion of sales volume allocated to each type times the Total Fixed Costs from Tab 1
2. Revenues for both boxes are incorrect. Use the Revenue from Tab 1
3. Variable Costs for both boxes are incorrect. Use the Variable Costs from Tab 1
4. Fixed Costs for both boxes are incorrect. Use the Fixed Costs Allocated in the Calculation above in #1
5. The Operating Profit for both boxes is incorrect, however it has the correct formula and should self-correct
6. Operating Profit % for both types of Boxes are incorrect, however it has the correct formula and should self-correct

Tab 3

1. Table 1 is incorrect:
1. The “Portion of Fixed Cost” for Each Type Box formula is Each Type Box Square Feet (Cost Driver for Depreciation) divided by Total of Square Feet Drivers times \$ Amount (millions) i.e. for the “Standard Box Depreciation” 7,000÷87,000×\$47.00 for the “Deluxe Box Depreciation” 80,000÷87,000×\$47.00
2. The “Allocated Cost per Box” formula is “Total Allocated Costs” divided by “Number of boxes per year”.
2. For Question 1 the following are incorrect:
1. Revenues and Variable Costs for both boxes are incorrect. Use the figures from Tab 1
2. Fixed Costs are incorrect, use the “Total Allocated Costs” from the table
3. Contribution Margin, Profit, and Profit % are incorrect, but the formulas are right and will self-correct when the above are fixed

Tab 4

1. Question 1: Standard Boxes are incorrect:
1. Variable Costs since you did not show your work, I can’t determine what is wrong.
2. Fixed costs are incorrect, use the fixed costs from Tab 3
2. Question 1: Deluxe Boxes are incorrect;
1. Fixed costs are incorrect, use the fixed costs from Tab 3 times .60
3. Question 2 is incorrect: all figures are incorrect, since you did not show your work, I can’t determine what is wrong.
4. Question 3 Required Operating Profit and Cost % are incorrect, since you did not show your work, I can’t determine what is wrong.
5. Question 4 is incorrect:
1. Fixed Costs are what you calculated in question 1 above
2. Total Costs are Variable + Fixed Costs
3. Determine Revenue (aka Selling Price) is incorrect, the formula should be Total Costs divided by the Cost % in Question 3
4. Selling Price per unit is incorrect should be the “Determine Revenue” (aka Sales Price) divided by the Units sold per year
6. Question 5 is incorrect:
1. Revenue should be the “Determine Revenue” calculated above
2. Fixed Costs are what you calculated in question 1 above
3. The Contribution Margin, Operating Profit and Operating Profit % are incorrect
7. Question 6 is incorrect:
1. The Selling Price is incorrect
2. Variable costs per unit are incorrect, it would be what was given in the problem instructions
3. Unit Contribution Margin is incorrect
4. Fixed Costs are incorrect and are what you calculated in Question 1 above
5. Breakeven Quantity is incorrect and should be Fixed Costs divided by the Unit Contribution Margin
6. The Breakeven value is incorrect and should be the Breakeven Quantity divided by the Selling Price

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