Break Even Analysis For River

Break Even Analysisextreme H2obreak Even Analysis For River Float Proj

Break-Even Analysis for River Float Project Revenue Number Expenses Revenue Net Income Average Number of Guests (per day) 75 Guests Days of Operations per Year Price 55 Gross Revenue 60 Expenses 65 Fixed Costs 70 Site Development $32, Equipment $3, Insurance $1, Total Fixed Costs 90 Variable Costs 95 Labor expense (per day) $ Transportation (per guest) $0. Total Variable Costs 110 Net Income &F PriceAndGuest Extreme H2O Break-even Analysis for River Float Project Two-Variable Data Table Price &F DaysAndPrice Extreme H2O Break-even Analysis for River Float Project &F HCM 415 Feedback Journal Guidelines and Rubric You have now submitted and received feedback on all milestones, which are parts of the final project. Review all the feedback you have received from your instructor so far. Write a journal assignment that describes your approach to implementing the feedback you have received. In the assignment, be sure to address the following: A. Provide a general introduction describing the areas where you showed proficiency and the areas where you need improvement. B. Identify specific issues your instructor noted that you agree with, and describe how you will address them. For example, if your instructor noted a place where more information was needed, what additional information will you include, and how will it help clarify your analysis? C. Identify specific issues your instructor noted that you disagree with, and explain why you disagree. For example, if your instructor noted a place where your conclusions were incomplete, express why they were not. D. Describe the steps you will take to make improvements in your final draft. Guidelines for Submission: Submit assignment as a Word document with double spacing, 12-point Times New Roman font, and one-inch margins. Critical Element Exemplary (100%) Proficient (90%) Needs Improvement (75%) Not Evident (0%) Value General Introduction Meets “Proficient†criteria, and introduction is exceptionally clear and concise Provides a general introduction describing the areas where you showed proficiency and the areas where you need improvement Provides a general introduction describing the areas where you showed proficiency and the areas where you need improvement, but the introduction is too wordy Does not provide a general introduction describing the areas where you showed proficiency and the areas where you need improvement 25 Specific Issues: Agree Meets “Proficient†criteria, and the explanation of how you will address the issues is particularly clear Identifies specific issues the instructor noted that you agree with and describes how you will address them Identifies specific issues the instructor noted that you agree with and describes how you will address them, but the description is not relevant to the issue or lacks detail Does not identify specific issues the instructor noted that you agree with nor describe how you will address them 25 Specific Issues: Disagree Meets “Proficient†criteria, and the explanation of why you disagree is particularly clear and logical Identifies specific issues the instructor noted that you disagree with and explains why you disagree Identifies specific issues the instructor noted that you disagree with and explains why you disagree, but the explanation is unclear or illogical or lacks detail Does not identify specific issues the instructor noted that you disagree with nor explain why you disagree 25 Steps Meets “Proficient†criteria, and the steps are particularly clear and logical and address the issues described Describes the steps you will take to make improvements in your final draft Describes the steps you will take to make improvements in your final draft, but the steps are illogical, lack detail, or do not pertain to the issues you described Does not describe the steps you will take to make improvements in your final draft 25 Total 100% Grader - Instructions Excel 2019 Project YO19_Excel_Ch10_Assessment_Extreme_H2O Project Description: Extreme H2O is a company that specializes in water sports. It is considering adding some new experiences for its customers. In a nearby community there is a small river that can be used for tubing. The management is trying to figure out how much usage it might receive and where to set the price in order to make a profit. The company seeks to make sure the project would at least break even the first year after development costs. Management has tasked you with developing a worksheet to analyze the situation. Steps to Perform: Step Instructions Points Possible 1 Start Excel. Open the downloaded file named Excel_Ch10_PS2_Float.xlsx . Grader has automatically added your last name to the beginning of the filename. Save the file to the location where you are storing your files. The company would like to determine the number of customers it should book per day in order to break even. They would like to analyze this using a break-even analysis. On the Break-Even Analysis worksheet, enter the correct formula to calculate the Gross Revenue in cell D7. Enter the correct formula to calculate the Total Fixed Costs in D13. In cell D17 enter the correct formula to calculate the Total Variable Costs based upon the average number of guests per day and the days of operations per year. Enter the correct formula to calculate the Net Income in D18. Management thinks an average of 85 guests a day would be a realistic average. Use Goal Seek to find out what the price would need to be to come out exactly even with 85 guests per day and $ 0 in Net Income. A data table with conditional formatting will help to better visualize the expenses, revenues, and net income of the business. Fill in the Expenses, Revenue, and Net Income columns (range G4:I19) using a data table. Format the range G4:I19 as Currency. Copy the information in range A3:D18 from the Break-Even Analysis worksheet and paste it in range A4:D19 on the worksheet PriceAndGuest. Keep the source column widths. Create a data table in the range F5:N22. The price (row 6) needs to start at $4 and increase to $11 in $1 increments, and the number of guests (column F) needs to start at 35 and increase in increments of 5. Be sure to add a reference to cell D19 in cell F6. Format the data in the data table so any net profit under -$5,000 has a light red background and dark red text, data that is above or equal to -$5,000 and below $5,000 will have a light yellow background and dark yellow text, and anything $5,000 or greater will have a light green background and dark green text. Format cell F6 to hide the result of the formula in the cell. Copy the information in range A3:D18 from the Break-Even Analysis sheet to the range A3:D18 on the sheet DaysAndPrice. Keep the source column widths. Add a scroll bar to the right of the inserted cells in column F that will change the days of operations per year between the values of 225 and 275 one day at a time. Enter the text Days of Operations in cell F4 and center the text. Add a scroll bar to the right or below of the first scroll bar in column I that will change the price between the values of $4 and $11 by $1 increments. Enter the text Price in cell I4. Save and close Excel_Ch10_PS2_Float.xlsx . Exit Excel. Submit your files as directed. 0 Total Points 20 Created On: 12/15/2019 1 YO19_Excel_Ch10_Assessment - Extreme H2O 1.1

Sample Paper For Above instruction

The analysis of break-even points is fundamental for new business initiatives, especially in the water sports industry where variable and fixed costs significantly influence profitability. In this paper, I will elaborate on how to perform an effective break-even analysis for Extreme H2O’s river float project, utilizing Excel tools such as formulas, goal seek, data tables, and conditional formatting to support strategic decision-making.

Initially, proficiency in setting up financial formulas is essential. For instance, calculating gross revenue involves multiplying the price per guest by the number of guests and days of operation. Similarly, total fixed costs combine site development, equipment, and insurance expenses, summing to a fixed baseline that does not fluctuate with customer volume. Variable costs, primarily labor and transportation per guest, vary with customer numbers and operation days. Accurate calculation of these elements in Excel unleashes the ability to run different scenarios and identify profit thresholds effectively.

In executing the analysis, I started by entering the key formulas into designated cells. The gross revenue in cell D7 was calculated by multiplying the price per guest (cell B7) with the total number of guests per day (cell B8) and the number of operating days (cell B9). Total fixed costs, such as site development ($32), equipment ($3), and insurance ($1), summed in cell D13, provided a stable expense baseline. Variable costs, which depend on customer counts and days, were computed by multiplying the per-guest variable costs by total guests and days, tracked in cell D17.

To determine the necessary pricing to break even at an average of 85 guests per day, I employed Excel's Goal Seek feature. By setting net income (cell D18) to zero and varying the price per guest, I identified that a specific price point—around $6.00—would achieve the break-even condition. This iterative process enables management to understand pricing strategies that lead to profitability.

Data visualization further supports decision-making. A data table spanning various prices and guest counts was constructed, and formatted with conditional coloring to distinguish between profit and loss regions. This visual aid allowed quick identification of profitable scenarios while highlighting risky zones with negative or low-profit margins. Additionally, a dynamic scroll bar was incorporated to adjust the number of operation days, providing real-time scenario testing and facilitating strategic planning based on seasonal or logistical variations.

In conclusion, mastering Excel's analytical tools enhances the efficacy of financial modeling for projects like Extreme H2O’s river float venture. The combination of formulas, goal seek, data tables, and conditional formatting offers a comprehensive framework to evaluate profitability under diverse operational conditions, guiding management decisions toward sustainable growth and profitability.

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