View References Review Table Design File Home Draw Mailings Layout Help Insert Design Layout cun Door Paste Format Painter Century Gothic 10 A A Aa ALI BIVX, X AD A AaBbccil AabCel I Normal 1 No Spac. H Font Opboard Paragraph p.3 Survey of Accounting Packet 3 Part 2 Yikes! He'l clearly have to complete more than 10 jobs. W.L. needs to be able to at least cover his costs. Still using the preliminary estimates provided, how many jobs would W.I have to complete to break even? What would that be in dolars? (1) Contribution margin: Sales price per job $15 Less: Variable costs per job $5.75 Contribution margin per job $9.25 121 Break even point in unit: Fixed costs $5.75 Contribution morgin per job $9.25 Note: W.1. won't be paid if he only completes part of a job 0.62 jobs I (3) Break even point in sales Break even point in jobs X Sales price per jobb - Break-even point in dolor $ Check your world $ $ totales Les toll vorble cous -Total comotion morgen otold cos Toto rot $ $ 1 Type here to search O lije 2 Font P Survey of Accounting Packet 3 Part 2 Yikes! He'll clearly have to complete more than 10 jobs. W.T. needs to be able to at least co- his costs. Still using the preliminary estimates provided, how many jobs would W.T. have to complete to break even? What would that be in dollars (1) Contribution margin: Sales price per job $15 Less: Variable co per job $5.75 Contribution margin per job $9.25 (2) Break-even point in units: Fixed costs $5.75 0.62 jobs Contribution margin per job $9.25 I Note: W.1. won't be paid if he only completes part of a job. (3) Break-even point in sales: Break-even point in jobs Sales price per job Break-even point in dollars 1 Check your work Total sales $ Less: Total variable costs $ = Total contribution margin $ Less: Total fixed costs $ $ 3 of 6 = Total profit 914 words DS ( Type here to search o Bi E ** Com Editor Voice Share e Find LaBk AaBb AaBb ACAABBC AaBbccl AaBbccl Replace eading 1 Heading 2 Heading 3 Title Subtitle Subtle Em Emphasis Dictate Sensitivity Select Styles Editing Sensitivity Packet 3 Semester Case - My Assistant As you know from your pre-class work, W.T. needs to determine how much he'l charge the customers of My Assistant. Keep in mind that he'll need to (1) cover costs and (2) earn a profit so he can be paid Parti We've already done quite a bit of work on projected costs for My Assistant, so pull out your notes from Packet #2. To recap, W.I's planning on the following: Newspaper ad $120 per month Social media manager $100 per month: $1 per job scheduled Payment collection $0.75 per job Gas $4.00 per job Considering his analysis of similar services and to keep things simple, W.1 plans to price all jobs the same and charge $15 per job. Because of this flat rate, he anticipates he'll likely need to create different types of jobs. For example purchasing a list of items at the grocery store would be one job, while a bundle of 2-3 smal errands such as picking up dry cleaning and prescriptions might be considered one job. We'll deal with those details later. For now, assume that all jobs are priced at $15 each and all have the associated variable expenses listed above. Because this will be a new business, W.I knows business will likely be slow at the beginning. Complete the folowing table assuming W.T. completes 10 jobs in a single month Hem Per Job Total Computations (10 jobs Sales $15 $150 Les Variable Cost $5.75 $575 Contribution Morgin $ Low: Fixed Cost 1220 Grom Margin 5 $ 12.5 192.5 lyje BANG & OLUFSEN