ACCM4100 Management Accounting Assignment

Instruction: This is an individual assignment.

Objective: The objective of this assignment is to effectively use spreadsheet software to provide costvolume-profit analysis

Task: ACCM4100 Management Accounting Assignment

CASE STUDY USING EXCEL SPREADSHEET

You work for Adelaide-based Tourperience Ltd which provide tourists and visitors with ‘experiences’ of Adelaide and South Australia. Your manager is currently investigating introducing another product, which is ‘De-luxe’ helicopter rides over the Barossa Valley. Each trip would be 50km in total. Your manager wants you to use cost-volume-profit analysis in order to help assess the plan’s feasibility.

She provides you with the following estimated data:

Selling price per trip: $600 (total for 3 customers – trips only run with 3 customers)

Costs:

Fuel: $50 per trip

Barossa ‘goodie bag’ per customer: $40

Helicopter rental per month: $20,000

REQUIRED: Calculate the following:

1) The Break-even point in trips per month (4 Marks)

2) The Break-even point in dollars of revenue per month (2 Marks)

Your manager has requested that the spreadsheet is easy to use for ‘What-if’ analysis – so she would like to be able to change some of the inputs to see the impact on the calculations above – for example, if the Helicopter were able to be rented more cheaply or the selling price was increased. Hence 6 Marks are allocated to ease of use and accuracy for ‘what-if’ analysis (which will also depend on the formulas used), 2 marks are allocated for the general presentation of the spreadsheet.

Marking Sheet: ACCM4100 Management Accounting Assignment