In row three (Today's Production Costs), fill out the following Excel columns with the following information.

Softwood Costs - ten cents per paper towel roll.

Chemical Glue and Resin Costs - two cents per paper towel roll.

Equipment Costs - pressing machines - five cents per paper towel roll.

Labor Costs - twenty cents per paper towel roll.

Building and Administration Costs - twenty-five cents per paper towel roll.

Total Paper Towel Production Costs - sixty-two cents per paper towel roll. We sell the paper towels at $1.00 per roll.

 

You have been asked by your Chief Operating Office via email to address the following questions in an email response:

What is the profit margin per paper towel roll?

What are the production costs per paper towel produced?

What is the significance the cost increases from the past 6 months?

Why is it necessary to do a trend analysis for this situation?

What are some recommendations to counteract the new setup costs?

  

Transcribed Image Text:

Home G2 Paste 7 8 9 10 11 Insert Draw Page Layout X Calibri (Body) [- BIU + A ✓ 1 Date 2 6 Months Ago Production Costs 3 Today's Production Costs 4 5 6 fx F✓ B 11 Softwood Costs 8 cents Formulas Data Review View Automate Tell me ✓ A A EE V A 三三三 C Chemical Glue and Resin Costs 2 cents EE D Equipment Costs 5 cents 2 Wrap Text v Merge & Center v E Labor Costs 10 cents General $%9 V 5000 F Building and Administration Costs 25 cents V Conditional Format Cell Formatting as Table Styles G Total Production Costs ✓ TIX ✓ CIA Delete Insert Selling Price 11 dollar 1 dollar H - v Format I Profit Margin WÓ J Comments Sort & Filter K Find & Select L Share (d) PS Analyze Data M Home G2 Paste 7 8 9 10 11 Insert Draw Page Layout X Calibri (Body) [- BIU + A ✓ 1 Date 2 6 Months Ago Production Costs 3 Today's Production Costs 4 5 6 fx F✓ B 11 Softwood Costs 8 cents Formulas Data Review View Automate Tell me ✓ A A EE V A 三三三 C Chemical Glue and Resin Costs 2 cents EE D Equipment Costs 5 cents 2 Wrap Text v Merge & Center v E Labor Costs 10 cents General $%9 V 5000 F Building and Administration Costs 25 cents V Conditional Format Cell Formatting as Table Styles G Total Production Costs ✓ TIX ✓ CIA Delete Insert Selling Price 11 dollar 1 dollar H - v Format I Profit Margin WÓ J Comments Sort & Filter K Find & Select L Share (d) PS Analyze Data M

Answer rating: 100% (QA)

Subject Analysis of Paper Towel Production Costs and Profit Margin Dear Chief Operating Officer Thank you for your email requesting an analysis of our ... View the full answer