Hello, this paper will be broken up into 4 sections. For Milestones 1-3 they will be all incorporated into 1 massive milestone. Please put all the work on 4 pages, fit as much as you can on each paper. (Always label the topics and each milestone. (Milestone 1, Page 1, company profile, and cost classification) (Page 2, variables fixed) (Milestone 2, page 3, contribution margin analysis, and break even analysis) (Milestone 3, page 4, COS schedule, and income statement variances) The other 11-12 pages are supposed to be a presentation, however I would like them to be put on the regular Microsoft program or excel whichever works with regular bullet points and information. I will make the presentation from the information given. Please see all the information in the attachments. You may make up whatever business name and whatever is needed for the assignment. Milestone One Instructions: Overview: In the first milestone of your final project, you will determine and classify the costs necessary for opening your business. This is a critical step that must be done correctly for you to successfully complete the subsequent milestones and the final submission. Scenario: Prior to Opening, Part I: You plan to open a pet-services business that will offer dog grooming, day care, and boarding. You can be creative in deciding the name of your business (e.g., “Inspiring Dog Care”), its geographical location (e.g., Chicago), and its mission and vision for adding value to the community. You will be asked to make choices for a few other details to customize your case; otherwise, you should use the information below. There are 12 kennels (single dog only) and the day care area can house 10 large dogs and 12 small dogs each day. The grooming facility is 200 square feet, the boarding facility is 2,500 square feet, and the day care is 1,500 square feet. Your groomer can groom five dogs a day for five days a week; each groom consists of 1.5 labor hours. You also offer dog day care six days a week, and kenneling every day. You have taken out a loan for start-up costs and the monthly payment is $420; it goes into effect immediately and should be accounted for in your costs. With limited cash contribution and loan funding, you located two angel investors. You will collect a modest draw for the first year of $600 a month; remember to divide evenly among the services. Note: For simplicity, base all calculations using 30 days in each month. You estimate the following staffing needs: ? A groomer who will be paid $12/hour and work 40 hours a week ? A day care attendant who will be paid $9/hour and will work 22 eight-hour days per month ? A receptionist who will be paid $8.50/hour and work 30 hours a week ? A kennel attendant who will be paid $11.50/hour and will work 22 eight-hour days per month A complete list of additional costs is provided below: ? Food and water bowls: $3.59/unit o Daycare: Two bowls last for every 75 dogs that attend daycare. o Boarding: Two bowls last for every 100 dogs that are boarded; you need two bowls per kennel. o Grooming:Eachbowllastsfor20groomsandyouneedfourbowlsatalltimes. ? Fencing for daycare area: $1,249; installation of fencing: $1,000 ? Dog grooming arm: $300 ? 12 kennels: $9,500; depreciation is $80/month ? Rent: $650/month; allocate based on square footage ? Utilities/insurance: $600/month; allocate based on square footage ? Grooming table: $900 ? Grooming tub: $2800 ? Heating system: $10,000; depreciation is $83/month; allocate based on square footage ? Clippers: $136.99; can be used for 100 grooms ? Shampoo: $103.96 per five-gallon pail, which can be used for 100 grooms ? Cage bank: $2200 per set of 5 ? Salon Tuff Capri mobile carry cart: $90 ? Towels: $34.99 per 12 pack o Day care: You need to have 12 towels for every 25 dogs. o Boarding: You need to have 12 towels for every 40 dogs. o Grooming: You need to have two towels for every groom per day. ? Scissors: (1) 7-inch straight is $194.99, and (1) ear-and-nose is $7.49; each can be used for 200 grooms. ? Toys: $3.29 per 6-pack; one toy will last for two dogs in day care, per day. ? Cleaning products: o Odoban: $14.55/gallon: Each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. o Simple Green: $15.66/gallon: each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. ? Dryer: $1250 ? Rubberized flooring for day care: $3800 Prompt: Complete the first three tabs, addressing the following critical elements: ? Determine the unique characteristics of your company in the “Company Profile” tab of your workbook. ? Accurately classify all of your costs in the “Cost Classification” tab of your workbook. ? Determine your per-unit cost per dog in the “Variable_Fixed” tab of your workbook. (Most costs are filled in for you. Only compute the missing costs.) Milestone Two: Overview: In the second milestone of your final project, you will complete your pre-opening strategy. You must analyze the cost behaviors and systems of your industry and then conduct the relevant financial calculations to determine appropriate costing solutions. Be sure to use your work from Milestone One to inform your analysis and proposals. Scenario: Prior to Opening, Part II: Your market research indicated the following price ranges as optimal for your area: ? Dog Day Care o With pricing at $18 per dog per day, you can expect to have 22 dogs per day. o With pricing at $20 per dog per day, you can expect to have 15 dogs per day. o With pricing at $25 per dog per day, you can expect to have 10 dogs per day. ? Overnight Boarding o With o With o With ? Basic Groom o With o With o With pricing at $25 per dog per day, you can expect to have 12 dogs per day. pricing at $28 per dog per day, you can expect to have 10 dogs per day. pricing at $30 per dog per day, you can expect to have 7 dogs per day. pricing at $25 per groom, you can expect to do 5 grooms per day. pricing at $30 per groom, you can expect to do 4 grooms per day. pricing at $35 per groom, you can expect to do 3 grooms per day. Additionally, you need to compare your break-even points for the following target profits for each area of your business: ? Day Care o Break-even o $417targetprofiteachmonth o $667targetprofiteachmonth ? Boarding o Break-even o $583targetprofiteachmonth o $909targetprofiteachmonth ? Grooming o Break-even o $1,000targetprofiteachmonth o $1,500targetprofiteachmonth Prompt: Continue your work by conducting a cost-volume profit analysis, specifically addressing the following critical elements: ? Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. ? Determine your break-even points for achieving your target profits in the “Break-Even Analysis” tab. ? Incorporate all feedback from Milestone One. Milestone Three: Overview: In the third milestone, you will jump forward in time: Imagine that your business has already opened. Use the updated scenario information to analyze your company’s performance. Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the company’s financial health. Therefore, you need to analyze your company’s performance over the last month using the data provided below. For your variance analysis, use the following financial data: Grooming label: Standard hours 150 Standard rate $12 Actual hours 180 Actual rates $11.50 Grooming Materials Standard Quantity 1000 Standard price $2 Actual quantity 1200 Actual price $3 Prompt: Complete your work by assessing your company’s financial performance, specifically addressing the following critical elements: ? Financial Statements ? Create a statement of cost of services in the “COS Schedule” tab. ? Create an income statement in the “Income Statement” tab. ? Variance Analysis ? Identify all variances for the direct labor time and the materials price in the “Variances” tab. ? Evaluate the significance of the variances in the “Variances” tab. ? Incorporate all feedback from previous milestones to finalize your workbook 11-12 pages Microsoft or excel Successful entrepreneurs understand all aspects of business, especially costs and costing systems. Managerial accounting provides a framework for strategic analysis and planning with regard to cost behaviors and costing systems. In this final project, you have the opportunity to act as an entrepreneur and apply managerial accounting principles to evaluate and manage costs related to your products within a costing system. Additionally, you will demonstrate your ability to communicate your findings effectively to internal stakeholders, just as an actual business owner would need to do. Specifically, you will assume the role of the owner of a hypothetical small business. In your milestone work, you will develop financial strategies prior to opening your business. For the final submission, you will create a presentation for your investors after your business has been in operation for a certain period of time. You will use the provided scenarios to complete your project. The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Two, Four, and Five. The final product will be submitted in Module Seven. In this assignment, you will demonstrate your mastery of the following course outcomes: ? ACC-202-01: Apply fundamental costing systems to optimize operations within a business ? ACC-202-02: Assess financial performance to communicate financial planning strategies to internal stakeholders ? ACC-202-03: Leverage fundamental managerial accounting methods to support the mission of an organization Prompt In a detailed PowerPoint presentation (12 to 15 slides in length, plus speaker notes and an addendum), explain and defend your costing strategies (i.e., the business plan created in your first and second milestones) and share your business’s performance to-date (i.e., the work from your third milestone). Be sure to effectively communicate to your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. Specifically, the following critical elements must be addressed. Most of the critical elements align with a particular course outcome (shown in brackets). I. Introduce your presentation A. Outline your company’s profile, including its name, location, and mission and vision. B. Explain for your investors the purpose of the presentation. What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important. [ACC-202-03] C. Explain and defend your methods for generating the information that you are about to share in terms of your adherence to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical? [ACC-202-03] 1 D. Specifically, be sure to illustrate how your managerial accounting methods support the mission of your organization, using examples. [ACC-202- 03] II. Financial Strategy: Review your original business plan and costing strategies using the prior-to-opening scenario information. A. Justify your use of job order costing. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. [ACC-202-01] B. Explain and defend the selling prices that you established for grooming, day care, and boarding. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] C. Explain and defend your selected target profits for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] D. Explain and defend your contribution margin per unit and contribution margin ratio. Be sure to reference your cost-volume-profit analysis in your defense. [ACC-202-02] III. Financial Statements: Assess your financial performance to-date using the post-opening scenario information. A. Financial Statements 1. Share the statement of cost of services and logically interpret the business’s performance against the provided benchmarks. [ACC-202- 02] 2. Share the income statement and logically interpret the business’s performance against the provided benchmarks. [ACC-202-02] B. Variance Analysis 1. Identify all variances for the direct labor time and the materials price. [ACC-202-02] 2. Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. [ACC-202-02] IV. In an addendum, submit your completed workbook, including the following: A. Accurately classify all of your costs in the “Cost Classification” tab. [ACC-202-01] B. Conduct a cost-volume profit analysis: 1. Determine your contribution margin per unit and contribution margin ratio in the “Contribution Margin Analysis” tab. [ACC-202-01] 2. Determine your break-even points for achieving your target profits in the “Break-even analysis” tab. [ACC-202-01] (Note: This part doesn’t make sense to me, it comes right after the 11-12 page instructions. ) Scenario: Prior to Opening, Part I: You plan to open a pet-services business that will offer dog grooming, day care, and boarding. You can be creative in deciding the name of your business (e.g., “Inspiring Dog Care”), its geographical location (e.g., Chicago), and its mission and vision for adding value to the community. You will be asked to make choices for a few other details to customize your case; otherwise, you should use the information below. There are 12 kennels (single dog only) and the day care area can house 10 large dogs and 12 small dogs each day. The grooming facility is 200 square feet, the boarding facility is 2,500 square feet, and the day care is 1,500 square feet. Your groomer can groom five dogs a day for five days a week; each groom consists of 1.5 labor hours. You also offer dog day care six days a week, and kenneling every day. You have taken out a loan for start-up costs and the monthly payment is $420; it goes into effect immediately and should be accounted for in your costs. With limited cash contribution and loan funding, you located two angel investors. You will collect a modest draw for the first year of $600 a month; remember to divide evenly among the services. Note: For simplicity, base all calculations using 30 days in each month. You estimate the following staffing needs: ? A groomer who will be paid $12/hour and work 40 hours a week ? A day care attendant who will be paid $9/hour and will work 22 eight-hour days per month ? A receptionist who will be paid $8.50/hour and work 30 hours a week ? A kennel attendant who will be paid $11.50/hour and will work 22 eight-hour days per month A complete list of additional costs is provided below: ? Food and water bowls: $3.59/unit o Daycare: Two bowls last for every 75 dogs that attend daycare. o Boarding: Two bowls last for every 100 dogs that are boarded; you need two bowls per kennel. o Grooming: Each bowl lasts for 20 grooms and you need four bowls at all times. ? Fencing for daycare area: $1,249; installation of fencing: $1,000 ? Dog grooming arm: $300 ? 12 kennels: $9,500; depreciation is $80/month ? Rent: $650/month; allocate based on square footage ? Utilities/insurance: $600/month; allocate based on square footage ? Grooming table: $900 ? Grooming tub: $2800 ? Heating system: $10,000; depreciation is $83/month; allocate based on square footage ? Clippers: $136.99; can be used for 100 grooms ? Shampoo: $103.96 per five-gallon pail, which can be used for 100 grooms ? Cage bank: $2200 per set of 5 ? Salon Tuff Capri mobile carry cart: $90 ? Towels: $34.99 per 12 pack o Day care: You need to have 12 towels for every 25 dogs. o Boarding: You need to have 12 towels for every 40 dogs. o Grooming: You need to have two towels for every groom per day. ? Scissors: (1) 7-inch straight is $194.99, and (1) ear-and-nose is $7.49; each can be used for 200 grooms. ? Toys: $3.29 per 6-pack; one toy will last for two dogs in day care, per day. ? Cleaning products: o Odoban: $14.55/gallon: Each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. o Simple Green: $15.66/gallon: each area will dilute 1 oz to 1 gallon of water; allocate based on square footage. ? Dryer: $1250 ? Rubberized flooring for day care: $3800 Scenario: Prior to Opening, Part II: Your market research indicated the following price ranges as optimal for your area: ? Dog Day Care o With pricing at $18 per dog per day, you can expect to have 22 dogs per day. o With pricing at $20 per dog per day, you can expect to have 15 dogs per day. o With pricing at $25 per dog per day, you can expect to have 10 dogs per day. ? Overnight Boarding o With pricing at $25 per dog per day, you can expect to have 12 dogs per day. o With pricing at $28 per dog per day, you can expect to have 10 dogs per day. o With pricing at $30 per dog per day, you can expect to have 7 dogs per day. ? Basic Groom o With pricing at $25 per groom, you can expect to do 5 grooms per day. o With pricing at $30 per groom, you can expect to do 4 grooms per day. o With pricing at $35 per groom, you can expect to do 3 grooms per day. Additionally, you need to compare your break-even points for the following target profits for each area of your business: 8 ? Day Care o Break-even o $417targetprofiteachmonth o $667targetprofiteachmonth ? Boarding o Break-even o $583targetprofiteachmonth o $909targetprofiteachmonth ? Grooming o Break-even o $1,000targetprofiteachmonth o $1,500targetprofiteachmonth Post-opening Scenario: Your angel investors are silent in relation to the business; however, they require board meetings for status updates on the company’s financial health. Therefore, you need to analyze your company’s performance over the last month using the data provided below. Note: Your instructor will create an announcement sharing the income statement data by the end of Module Four. All of the data you need for the cost-of- goods-manufactured statement can be found in the “COS Schedule” tab of your workbook. Direct materials/ labor Shampoo Original Projection: 1000 ounces ($2/groom) Actual: 1200 ounces/ $3 groom Grooming Labor Original projection: 1.5 hrs/groom @ $12 Actual 2.25 hrs/groom @ $11.50