Part 1: Based on the data presented in the Unit VII Spreadsheet Template in Excel (CM Breakeven tab):

• Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
• Calculate the weighted average CM.
• Calculate the breakeven point.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report.

The CM breaksown is completed below.

THe question that need to be answered is:

Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.

This is 5301 Managerial Applications of Accounting

Cookie Business
	Chocolate Chip	Sugar	Specialty	Total
Units Sold	1,500,000	980,000	300,000	2,780,000
Sales	$ 1,875,000.00	$ 882,000.00	$ 1,050,000.00	$ 3,807,000.00
Less: Variable Costs	$ 690,000.00	$ 205,800.00	$ 81,000.00	$ 976,800.00
Contribution Margin	$ 1,185,000.00	$ 676,200.00	$ 969,000.00	$ 2,830,200.00
Less: Common Fixed Costs				$ 125,000.00
Profit				$ 2,705,200.00
Per item Contribution Margin	1185000.00	676200.00	969000.00
Weighted Average Contribution Margin	982,329.500
Break-even point in units	2,880