# Fix Top of Form 2/15: Milestone submission. On Sheet 1: Table 2 should use Fixed cost per month “\$3 million (instead of \$10) per

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Top of Form

 2/15: Milestone submission. On Sheet 1: Table 2 should use Fixed cost per month “\$3 million (instead of \$10) per month” because Project 2->Tab 2->Question #3 states that “The variable cost per unit is \$10 and the fixed costs are \$3 million per month.” Please correct the related numbers on Question 2 accordingly. Question #2: “Marginal Contribution = Revenue – Variable Costs” is the correct formula you should use.  Question #2: You should use the formula “Profit % = Profit / Revenue” when calculating Profit % for Total (in cell D70). Do not use ‘sum’ function at here.  On Sheet 2: Please do not use “Total Fixed Costs (Millions- from Tab1)” which is inaccurate statement. For Question #1, you need to carefully read the assumptions which indicate that the Fixed Costs is allocated based on the number of boxes sold. For example, Total FC for Standard Boxes = (Volumes per year for Standard Boxes/Total Volume for both boxes) * Total FX = (108/126) * 156 =133.71. You need to correct all related calculations accordingly.  Sheet 3: For Question #1, Total Allocated costs (row 14) for Cost of Standard Boxes (Column H) should be the sum of the computed results in column H (=16.84).  Your calculations for the Allocated cost per box are incorrect. For example, for Standard boxes, Allocated Cost per box = Total Allocated costs (16.84) / Number of boxes per year (108) = 0.16. Please correct your related calculations for both standard boxes and Deluxe boxes. On Sheet 4: For Question #1, check “Fixed Costs” and “Contribution” numbers if you revised the costs on Sheet 3. They should be consistent. Revised other related questions caused by the above changes.

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