NP_EX_8_Bikes

.xlsx

School

University of Massachusetts, Amherst *

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119

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Business

Date

May 6, 2024

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xlsx

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9

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05/04/2024 71c557c2221c481092d3804c8146d51b2ce029a5.xlsx Page 1 Documentation Athena Cycles Author Elizabeth Marcoux Date 5/4/2024 Purpose To perform a break-even analysis of Trail I mountain bike sales and to determine the product mix that optimizes company profits among four Athena Cycles mountain bikes
Scenario Summary Current Values: Status Quo Increased Production Changing Cells: Units_Sold 1,200 1,200 1,500 Sales_Price_per_Unit $900 $900 $800 Salaries_and_Benefits $ 175,000 $ 175,000 $ 175,000 Shipping_and_Distribution 72,000 72,000 90,000 Stocking_and_Storage 65,000 65,000 75,000 Miscellaneous 55,000 55,000 70,000 Result Cells: Total_Revenue 1,080,000 1,080,000 1,200,000 Total_Expenses 1,027,000 1,027,000 1,235,000 Net_Income $ 53,000 $ 53,000 $ (35,000) Notes: Current Values column represents values of changing cells at time Scenario Summary Report was created. Changing cells for each scenario are highlighted in gray.
Decreased Production 1,000 $950 $ 145,000 60,000 55,000 40,000 950,000 850,000 $ 100,000
71c557c2221c481092d3804c8146d51b2ce029a5.xlsx Income Statement 05/04/2024 Athena Cycles Income Analysis for the Trail I Mountain Bike Break-Even Analysis Net Income Analysis Revenue Units Sold Revenue Expenses Net Income Sales Price Units Sold 1,200 1,200 $ 1,080,000 $ 1,027,000 $ 53,000 Units Sold $800 $900 $1,000 $1,100 $1,200 Sales Price per Unit $900 250 225,000 504,500 (279,500) 250 (304,500) (279,500) (254,500) (229,500) (204,500) Total Revenue $ 1,080,000 500 450,000 642,000 (192,000) 500 (242,000) (192,000) (142,000) (92,000) (42,000) 750 675,000 779,500 (104,500) 750 (179,500) (104,500) (29,500) 45,500 120,500 Variable Expenses 1,000 900,000 917,000 (17,000) 1,000 (117,000) (17,000) 83,000 183,000 283,000 Units Produced 1,200 1,250 1,125,000 1,054,500 70,500 1,250 (54,500) 70,500 195,500 320,500 445,500 Material Cost per Unit $425 1,500 1,350,000 1,192,000 158,000 1,500 8,000 158,000 308,000 458,000 608,000 Total Material Cost 510,000 1,750 1,575,000 1,329,500 245,500 1,750 70,500 245,500 420,500 595,500 770,500 Manufacturing Cost per Unit $125 2,000 1,800,000 1,467,000 333,000 2,000 133,000 333,000 533,000 733,000 933,000 Total Manufacturing Cost 150,000 Total Variable Expenses $ 660,000 Fixed Expenses Salaries and Benefits $ 175,000 Shipping and Distribution 72,000 Stocking and Storage 65,000 Miscellaneous 55,000 Total Fixed Expenses $ 367,000 Summary Total Revenue 1,080,000 Total Expenses 1,027,000 Net Income $ 53,000 - 500 1,000 1,500 2,000 2,500 $- $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 CVP Analysis Revenue Expenses - 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 (400,000) (200,000) 0 200,000 400,000 600,000 800,000 1,000,000 Break-Even Analysis 500 1000 1500 2000 2500
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