3. Using the Excel template provided, list and compute the following for a woodworking company specializing in PICTURE FRAMES:

a. At least 6 relevant costs 2 fixed, 2 variable, and 2 mixed

b. Estimate each of these costs on an annual basis (no necessary for your 2 variable costs).

c. Calculate how many units you will need to sell to break even in the first 3 years of your business.

d. Estimate a target profit for years 2 and 3. What is it in dollars? How many units must be sold to achieve these target profits?

4. Please summarize the following:

a. What are the relevant costs for your business? Explain how you classified each cost as fixed, variable, or mixed.

b. Discuss the break even point for years 1-3. Does it change? Why?

c. Discuss the target profit that you have established for years 2 and 3. How did you arrive at it? Do you think you can realistically achieve these targets?

https://docs.google.com/spreadsheets/d/1sqDTuQnarZhWdr9jUNQSKTlJZl-bh04tzhDfMUjw64s/edit?usp=sharing

H 1 M N a1 P 5 T 1 V BA213 Course Project Calculations Sales Price Per Unit: Total Annual Cost Relevant Casts: Variable Cost #1 Variable Cost #2 Fixed Cost #1 Fixed Cost A2 Mixed Cost 1 Mixed Cast 2 Description Wood and Stain/Paint Labor Depreciation Rent Electricity Internet $5000 tools & working needs/10 years $800/month $75/month $55/month Break Even Calculations: Mixed Cost #1 - Variable Rate Mixed Cost #1 - Fixed Cost Plece Mixed Cost #2 - Variable Rate Mixed Cost #2 - Fixed Cost Piece Variable Cost N1 Rate Variable Cost M2 Rate Break-even Formula: Total Fixed Costs / Contribution Margin Per Unit Total Fixed Costs #REFI CM Per Unit #REF! Year 1 Break-Even: Target Profit Calculations: Year 2 Target Profit: Target Profit Formula: (Total Fixed Costs + Target Profit) / Contribution Margin Per Unit Year 2 Units Required To Achieve Target Profit: #REF! Note: Al variable costs should be per wat of whatever you are selling Year 3 Target Profit: Year 3 Units Required To Achieve Target Profit: AREF! REF Year 2-3 Considerations: Inflation impact Year 2 Break Even: Year 3 Break-Even: #REFI #REF! Revised CM #REFI $ H 1 M N a1 P 5 T 1 V BA213 Course Project Calculations Sales Price Per Unit: Total Annual Cost Relevant Casts: Variable Cost #1 Variable Cost #2 Fixed Cost #1 Fixed Cost A2 Mixed Cost 1 Mixed Cast 2 Description Wood and Stain/Paint Labor Depreciation Rent Electricity Internet $5000 tools & working needs/10 years $800/month $75/month $55/month Break Even Calculations: Mixed Cost #1 - Variable Rate Mixed Cost #1 - Fixed Cost Plece Mixed Cost #2 - Variable Rate Mixed Cost #2 - Fixed Cost Piece Variable Cost N1 Rate Variable Cost M2 Rate Break-even Formula: Total Fixed Costs / Contribution Margin Per Unit Total Fixed Costs #REFI CM Per Unit #REF! Year 1 Break-Even: Target Profit Calculations: Year 2 Target Profit: Target Profit Formula: (Total Fixed Costs + Target Profit) / Contribution Margin Per Unit Year 2 Units Required To Achieve Target Profit: #REF! Note: Al variable costs should be per wat of whatever you are selling Year 3 Target Profit: Year 3 Units Required To Achieve Target Profit: AREF! REF Year 2-3 Considerations: Inflation impact Year 2 Break Even: Year 3 Break-Even: #REFI #REF! Revised CM #REFI $