In this written assignment unit 3 we will focus on cost analysis models. . Paper details GENERAL INSTRUCTIONS: Please paraphrase information from sources (use at least 2 quality sources outside of the assigned textbooks; avoid direct quotations and “Wiki” sources)

Cost Analysis Models.

Written Assignment Unit 3: Cost Analysis Models. Paper details GENERAL INSTRUCTIONS: Please paraphrase information from sources (use at least 2 quality sources outside of the assigned textbooks; avoid direct quotations and “Wiki” sources) and include in-text citations and corresponding references in APA format. Use the introduction, body, conclusion (IBC) format in your discussion, written, portfolio, and group activity assignments. Here are the details of the IBC format. Introduction: restate the problem or question given in the assignment, include any background information, and provide a preview or plan of what you will be discussing in the body.

Cost Analysis Models.

Body: use the MEAL plan to create paragraphs consisting of your own words along with paraphrased sentences and in-text citations to answer the question or problem provided in the introduction. Conclusion: summarize the main points discussed in the body, discuss how they answer the problem or question, and make a recommendation or observation to end your response. Please make sure your response follows APA guidelines and includes a reference list at the end. I suggest writing an outline before you begin to write. Please include at least one of the assigned textbooks as a reference. Tables and graphs can be used as evidence in the body.

Cost Analysis Models.

You need to explain how and why the table and graph support the topic sentence of the paragraph. PROMPT: In this paper, please discuss the following case study. In doing so, explain your approach to the problem, support your approach with references, and execute your approach. Provide an answer to the case study’s question with a recommendation. You are the owner of a parasailing company that is expanding operations to a new beachfront location, and you need to prepare a 3-year analysis for the bank that may loan you the funds to purchase your boat and parasailing equipment.

Cost Analysis Models.

A lot of business is done on a referral basis, where a company pays a fee to a 3rd party to send them customers. However, because of your well-established reputation, you already have received requests for “flights” to be scheduled as soon as you open the new location. Therefore, you expect to break-even the first year but must calculate the number of flights needed. You also need to determine the new break-even point in Year 2 if the location allows referrals, which you believe will cost on average about 2% of the sales price overall. Finally, you need to determine the volume needed to have $10,000 in profit in Year 3. https://youtu.be/CYY_qs2lDnQ

Cost Analysis Models.

The following information is available: Sales price per flight $175 Estimated loan payment per month $350 Fuel costs per flight $100 Full-time scheduler salary $2,500 per month Boat crew per flight $30 $500 per month dock fee and use of a small office on a pier Requirements: Calculate the Year 1 break-even quantity, contribution margin, and contribution margin ratio. Explain how the values were determined. Calculate the Year 2 break-even quantity, break-even sales, and contribution margin ratio. Explain how the values were determined. Determine the number of flights (units) needed to retain a profit of $10,000 in Year 3, assuming the company does allow for referrals.

Cost Analysis Models.

Recommend if the bank should issue the loan. Superior papers will: Perform all calculations correctly. Articulate the approach to solving the problem. Explain the relationship of the costs to the concept of contribution margin. Discuss any limitations of the data, including what may be missing. Conclude on whether the bank should issue the loan. Be sure to use APA formatting in your paper. Purdue University’s Online Writing LAB (OWL) is a free website that provides excellent information and resources for understanding and using the APA format and style. The OWL website can be accessed here: http://owl.english.purdue.edu/owl/resource/560/01/

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