Posted: June 13th, 2022
In this assignment, you are a consultant making data supported recommendations to a client who desires to meet a specific profit goal (income after tax).You will :
1.Create your own original EXCEL filewith price and cost data from the case, separately showing all variable cost items (costs that vary with the number of units produced) all fixed cost items (costs that are incurred independent of the number of units produced) , and the client’s current price per UNIT and number of UNITS sold.
2. In the same Excel file, create a contribution income statement, using the format in the case, (i.e., showing price x units sold (revenue), variable costs x units sold (total variable costs), contribution per unit and total contribution; total fixed costs. income before and after tax.
3. Calculatebreakeven units at current price
4. Calculatethe revenue required to meet income target after tax (profit)
5. First decision:Raise price? Calculate the price per unit needed to reach the required income target (keeping the current volume of units sold). Explain why this might or might not be a good choice.
6. Second decision:Increase volume? Calculate the units to be sold (volume) under current pricing in order to reach target income. Explain why this might or might not be a good choice.
7. Determinewhether it is best to adjust price or volume in order to reach the client’s target income Compare the options and explain the rationale for your choice
8. Prepare a narrated PowerPoint presentationto your client, summarizing your findings, your comparative analysis and your recommendations. The narration should thoroughly reflect the logic of your analysis and will be evaluated based on the quality of this “written” communication. (See the below instructions on how to prepare a narrated PowerPoint presentation.
Referto the PowerPoint presentation below, “Jewelry Case Hints” for specific guidance through your analysis.
Submit your Excel filein your assignment folder: that contains the above analyses. Title your file, “Excel case week 4.”
Submit your PowerPoint presentationin your assignment folder and title it “Presentation to Client, week 4
Rubric for week 4 Individual Break Even analysis
Competencies: Critical thinking, Communication, Strategy development
MBA outcomes: (1) Communicate clearly in writing and speaking; (2) Apply logical processes to formulate clear, defensible ideas; (3)Use mathematical information, operations, and quantitative analyses to solve problems and inform decision-making; (10) Plan, evaluate, and manage the financial implications of the organization’s operations.
Proficiency Scoring categories
Highly proficient – 90-100%
Proficient – 80-89%
Developing Proficiency- 70-79%
A. Format: Executive Summary,Introduction and Conclusion (10%)
· Summary brings out the substance of the report, explaining major recommendations and their logic,
· Introduces the topic, its relevance to the discipline and to the appropriate audience
· Introduction lays the groundwork for the direction of the paper
· Conclusions are precise and strongly supported within the paper
B.Critical thinking factors (20%) show you can apply logical processes to formulate clear and defensible ideas based on analysis of facts and ethical considerations
· Identify and clearly explain the issue, question or problem under critical consideration
· Locate and access sufficient information to investigate the issue or problem
· Evaluate the information in a logical and organized manner to determine its value and relevance to the problem
· Consider and analyze information in context to the issue or problem:
· Develop well reasoned ideas, conclusions, or decisions, checking them against relevant criteria and benchmarks, and in accordance with assignment instructions
C.Communication factors (20%) show you can Communicate clearly in writing:
· Organize document clearly in a manner that promotes understanding and meets the requirements of the assignment
· Develop coherent paragraphs or points so that each is internally unified as part of the whole document.
· Provide sufficient, correctly cited support that substantiates the writer’s ideas
· Tailor communications to the audience
· Follow conventions of Standard Written English.
· Create neat and professional looking documents appropriate to the project or presentation.
· Create clear oral messages.
D. Quantitative reasoning factors (25% ) show you can use mathematical information, operations and quantitative analyses to solve problems and inform decision making.
· Identify numerical or mathematical information that is relevant in a problem or situation
· Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution
· Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data
· Employ software applications and analytical tools to analyze, visualize and present data to inform decision-making
E. Strategic Managment of financial capital factors (25%) show you can plan, evaluate, and manage the financial implications of the organization’s operations.
· Apply relevant microeconomic principles to support strategic decisions for the organization.
· Analyze financial statements to evaluate and optimize organizational performance
· Determine optimal financial decisions in pursuit of an organiation’s goals
· Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions.
A range (90 – 100%)
B range (80 – 89%)
C range (70 – 79%)
F range (Below 70%)
Overall Score:A + B + C+ D + E
Tips for Designing Narrated PowerPoints
Marquis (2011) offers some useful guidelines:Creating an Engaging Presentation for
the Online Classroom
Aaron Weyenberg of TEDBlog (2014) offers some key tips, including:
1. The presentation needs to stand on its own, and strong visuals should support the
2. The slides should have a consistent look and feel.
3. Use transitions to support movement from topic to topic.
4. Avoid slides with a lot of text.
5. Use photos that are simple, yet strong, to illustrate the concept.
6. Go easy on the special effects.
Guy Kawasaki’s 10-20-30 rule suggests: “A PowerPoint presentation should have 10
slides, last no more than 20 minutes, and contain no font smaller than 30 points.” Yet,
many hit presentations don’t even come close to making that rule. So forget the hard and
fast rules. It’s about your presence, your topic and your audience.
Garr Reynolds (2014) further suggests:
1. Keep it simple (live or online)
a. Use a horizontal or “landscape” orientation
b. Slides should support the message, not be the message or star of the show – you are!
c. Don’t let slides get unnecessarily complicated, busy, or full
d. Nothing in your slide should be superfluous, ever
e. Your slides should have plenty of “white space” or “negative space.”
2. Limit bullet points and text
a. Do not overuse bullets and text and crowd the screen
b. Keep text brief
3. Use transitions and animations judiciously
a. Some animation is a good thing, but stick to the most subtle and professional
b. For transitions between slides, use no more than two or three different types of
transition effects and do not place transition effects between all slides
4. Use high-quality graphics
5. Use clear, crisp images
6. Be cautious of copyright issues
7. Never stretch low-resolution images
8. Avoid cartoonish clip art- use professional images
9. Select a visual theme
10. If using PowerPoint design templates, keep to business or professional colors and
11. Use appropriate charts:
Pie charts are used to show percentages.
Best to use no more than 4-6 slices. Use
color or pull out the slice to contrast the
most important slices.
Vertical bar charts are used to show changes
in quantity over time. Limiting the number of
bars to 4-8 is best.
Horizontal bar charts can be used to
compare quantities such as the sale of cogs,
chains, and sprockets in each of a company’s
Line charts are used to display a trend. For
example, the trend in this chart is an overall
increase in sales from January to July.
12. Use color well
Sales in Millions
0 5 10
a. Colors can be divided into two general categories: cool (such as blue and
green) and warm (such as orange and red)
b. Cool colors are often used in business presentations
c. You can change the color scheme in a PowerPoint design template
13. Choose fonts well
a. Use the same font set throughout your slide presentation
b. Use no more than two complementary fonts (e.g., Arial and Arial Bold)
c. Use sans-serif fonts (Arial, Calibri, Verdana)
d. Choose a size appropriate for the readers
14. Use audio and video appropriately
a. Use video clips to show concrete examples
b. Avoid unusual sound effects
c. Speak clearly in recordings
15. Use the Slide Sorter feature in PowerPoint to review the visual flow of your
Microsoft PowerPoint. Used with permission from Microsoft.
m62.net (2011) offers the following tips for recording:
1. Use a quality headset with a microphone – this keeps the microphone in a consistent
position relative to your mouth and also minimizes echo and background noise to
keep your voice levels steady.
2. Unplug your laptop charger before recording to avoid background humming sound
while the microphone is on.
3. Perform several test runs to check sound quality
4. Prepare a script, but try not to sound like you’re reading from it as you record.
Strive to sound natural and be engaging.
5. Practice your timings and animation clicks before you start recording to avoid
Kawasaki, G. (2005). The 10/20/30 rule of PowerPoint. Retrieved from
m62.net (September 20, 2011). Narrated presentations: Best practices.Article62 e-zine.
Retrieved from http://www.m62.net/presentation-skills/e-presentation-skills/narrated-
Marquis J. (2011, September 22). Creating an engaging presentation for the online
classroom. Retrieved from http://www.onlineuniversities.com/blog/2011/09/creating-an-
Reynolds, G. (2014). Top ten slide tips. Retrieved from
Weyenberg, A. (2015). 10 tips on how to make slides that communicate your idea, from
TED’s in-house expert. TEDBlog. Retrieved from http://blog.ted.com/10-tips-for-better-
Marquis (2011) offers some useful guidelines:Creating an Engaging Presentation for the Online Classroom
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a.On each slide,clickon SlideShow,selectCustomAnimation
c.Clickon each oftheobjectsintheanimationorderandmakesurethatontherighthand
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ChangeQuality Thisoption allowsyoutochangethequalityofthesoundrecorded. Thebestqualityusesthe
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d.PressESC tostoprecording.PowerPointwillaskyouifyouwishtosavetheslidetimings,clickon NO.
a.Checkthat, on EACHslide,theFIRST thingtobeanimatedisthesound:
ii.Intheanimationbox,makesurethatthe top objectisyoursoundfile.Youcanusethearrow
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Santa Rosa Jewelry
Target Profit Assignment
There are some hints in the notes page of each slide .
To get there, go to view tab, Notes page, you can see what iswritten in the notes sections, while the case facts and requirements are in the main PP slide area.
Tiffany Nadeau is your client!
Write a report that is appropriate for her (based on what you learn about her)
Make it a great week!
This assignment is not about working hard, but working smart. I do not expect you to consider every possible option nor for you to employ every tool we are providing you. Use what you need for this engagement, no more.
The goal always is to consider who your client is and to be cognizant of his/her business sophistication and her needs.
Read cases carefully. Write down the key input or facts of the case, write down what your assignment or goal is, and then re-read the case every day to make sure you are answering the question posed and providing an appropriate solution (not a bunch of possible sophisticated options) . Then support your recommendation as necessary and in a clear, concise, but complete way that your client will understand.
KIS (Keep it Simple)!
You agreed to analyze her business operations and to advise her how to reach her goal of earning $120,000 per year, after taxes. After some calculation and some thought, you conclude that Tiffany has to increase her revenues, perhaps by achieving greater volume, or perhaps by raising her selling price.
Jane just wants a reasonable outcome for her hard work.
You are given only two recommendations to consider: either increase volume OR Raise the selling price (Both to increase revenue!).NO MORE!!!
Work with the facts given and requirements your client set out for you.
KIS – Keep it Simple!
Evaluate what kind of business
Tiffany Nadeau established and ran a small workshop that manufactured unique, high quality jewelry. She marketed these creations to up scale gift shops across the United States in batches of 20 assorted items, for which she charged $2,880 per batch. In turn, the gift shops sold the jewelry at prices averaging eight times what they paid for the jewelry.
Evaluate what kind of business you are doing the analysis for. What do you think Tiffany’s likely competition is.?
What is her market?Is hers a mass production operation or a specialized niche market?
Can the market withstand a higher price for her “creations?”
She sells her jewelry by batch of 20 items in a batch. She does not sell partial batches, so discussion of 7.4 batches does not make sense. Also, as she sells by batch, it is not necessary to breakcosts out per piece of jewelry. (Although knowing the price per jewelry piece did help me to imagine a bit better the product being sold).
KIS and read the case carefully more than once!
A bit about your client
Business was brisk, and Tiffany could sell all that she produced.But she found herself earning very little money, and after paying her 45% U S and California incometax, she found herself with almost no money to live on. That led Tiffany to you, as her consultant. She complained to you that she worked very hard, 50 weeks a year, but ended up broke and frustrated. Tiffany said that house prices were very expensive in Santa Rosa, CA and that she hoped to purchase a home and have enough left for a nice vacation and moderate lifestyle. She noted that shewould be satisfied to make $120,000 a year, after taxes.
Think about your audience,the business savvy of your client, their needs, their personality. Can’t you picture Tiffany in your mind?
Tiffany really just wants to know what revenue she must have to have $120,000 after taxes by working50 weeks per year, No more.She is optimistic that you, her MBAconsultant can give her some good recommendation.
Your recommendations should reflect that you are “listening” to her needs and frustrations..
Tiffany does not have the patience to flip through your vast number of spreadsheets with lots of numbers on it, she is an artist. Keep it simple, but show how you get the numbers you come up with.
Costs per unit: which unit?
Tiffany employed 11 people.10 earned $30 per hour and worked producing jewelry.Joseph was paid $20 per hour for his unskilled labor.Jewelry production varied between a low of 14 and a high of 26 batches per week, and averaged 1,000 batches per year. Each batch cost $130 (excluding wages) to pack and ship, with Joseph doing all the packing and shipping. It takes Joseph 1 hourto pack and ship one batch. Joseph also does other chores, such as sweeping, vacuuming and cleaning, and he averages 30 hours per week of employment withTiffany’s workshop, for the 50 weeks per year that he works for Tiffany.
Who does all of the “making” or “creating” ?
I appreciate yourwillingness to think of creative solutions, but be sensitive to your client.
Contribution Income Statement
Revenue # units X sales price per unit
less variable costs #units X Variable cost per unit
Contribution # units X Contribution per unit = Total contribution
Fixed Costs less total fixed costs
Income before tax Income before tax.
Tax IncomeXtax rate
Income after tax Income after tax (belongs to the owner)
Your job is to determine which costs are fixed and which are variable per batch. Then find the target profit and determine the revenue required to reach target profit.
What is your recommendation?
Tiffany’s marketing trips
Tiffany spends 10 weeks a year touring the U.S. and attending trade shows in order to sell her jewelry.Her travel, hotel, show fees, and food costs were $4,200 each week. Workshop rent and utilities cost her an average of $7,500 per month.Tiffany works 40 weeks a year at making jewelry,While at the shop, she works 50 hours per week designing, setting up and manufacturing as needed to get orders out on time.She takes 2 weeks of vacationeach year.
Are marketing and purchasingimportant functions?Are they important to Tiffany and to her sales?
Rent and utilities of $7,500 per month (included in the rent, utilities, and raw materials numbers given later in the case).
KIS and read the entire case more than once carefully!Keep in mind your client’s needs.
Fixed and Variable manufacturing costs
The cost of raw materials varied depending on the price of gold and silver.Tiffany spends about $1,900 per batch on raw materials. Production workers spend 20 hours form each batch.Tiffany’s time is in addition.They earn $30 per hour. And work 40 hours per week.Advertising runs $38,000 per year.Insurance costs $1,500 per month.Rent and Utilities are $7,500.
$7,500 per month(not per batch, ) for rent and utilities. Be sure to read carefully!
Oh, and KIS (Keep it simple)!
Santa Rosa Jewelry Case
Tiffany Nadeau established and ran a small workshop that manufactured original design quality jewelry.What began as a hobby for sale in craft shows grew into a small on-line business. Later, it became a manufacturer for upscale jewelry shops in tourist locations across the country. To accommodate the greater volume, Ms. Nadeau opened a small workshop in the historic district of Santa Rosa, California, about 50 miles north of San Francisco.She paid the following prices for some of her raw material:Gold $1,200 per ounce, Silver $16.50 per ounce.Gold and Silver prices have been volatile making pricing difficult.
She marketed these creations to gift shops across the United States in batches of 20 assorted items, for which she charged $2,880 per batch. In turn, the gift shop sold the jewelry at prices averaging eight times what they paid for the jewelry.
Tiffany had a staff of 11.Ten workers produced the jewelry and Joseph helped with shipping and cleanup.The production people were paid $30 per hour including benefits and Joseph was paid $20 per hour for his unskilled labor.Jewelry production varied between a low of 14 and a high of 26 batches per week, and averaged 1,000 batches per year. Each batch cost $130 (excluding wages) to pack, ship and insure, with Joseph doing all the packing and shipping. It takes Joe 1 hour to pack and ship one batch. Joe also does other chores, such as sweeping, vacuuming and cleaning, and he averages 30 hours per week of employment with Tiffany’s workshop, for the 50 weeks per year that he works for Tiffany (with his time split between packing and shipping of batches and doing weekly cleaning, etc.)
Tiffany spends 10 weeks a year touring the U.S.She attends trade shows in order to sell her jewelry, and to find suppliers of the components for her products. Her travel, hotel, show fees, and food costs were $4,200 each week. Workshop rent and utilities cost her an average of $7,500 per month. Insurance including liability, workers compensation, and unemployment cost $1,500 per month.Advertising in trade journals and on Fashionista.com cost $38,000 per year.
Tiffany works 40 weeks a year at making jewelry, often working over 50 hours per week.She spends 10 weeks marketing and takes 2 weeks of vacation.
The cost of raw materials averaged $1,900 per batch.It takes Maria and Juanita 20 hours per batch to manufacture the jewelry.Tiffany does design work, creates the molds for the jewelry and spends time making the items as needed to meet orders.
Business was brisk, and Tiffany could easily sell every batch that she produced. But she found herself earning very little money, and after paying her 45% income tax for US and California, she found herself with almost no money to live on. That led her to ask for your help.
She complained to you that she worked very hard, 50 weeks a year, but ended up broke and frustrated. Tiffany said that Santa Rosa was expensive even though home prices were less than half of what they were in San Francisco, some 50 miles to the south. Reasonable homes sold for $500,000 to $2,000,000.These were about 4 times the price of homes in Croydon, New Hampshire where her sister lived. With property taxes and insurance, Tiffany thought that she needed at least $5,400 per month for her mortgage payment. That payment was far beyond what she can afford.She would need $10,000 per month after tax to afford the mortgage and have enough left for a moderate lifestyle.
You agreed to analyze her business operations and to advise her how to reach her goal of earning $120,000 per year, after taxes.
After some calculation and some thought, you conclude that Tiffany has to increase her revenues, perhaps by achieving greater volume, or perhaps by raising her selling price.Write a short report directed to Ms. Tiffany Nadeau with your recommendation on how to increase revenue, supported with a pro-forma contribution income statement which incorporates your recommendations. You should show all calculations in a Microsoft Excel document.Include a breakeven analysis for zero profit and a second analysis to achieve an after tax target income of $120,000 for Ms. Nadeau and provide your conclusion.(The report to Ms. Nadeau can be written in a Textbox (Textboxes automatically wrap text) in a separate worksheet in the same Excel document.
Submit one document that contains your calculations, the 2 breakeven analyses, and the report.Be sure to proofread. A PowerPoint presentation “Santa Rosa Jewelry Hints” has been posted in this week’s module to get you started.
Place an order in 3 easy steps. Takes less than 5 mins.