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ACC 202 Milestone Two Guidelines and Rubric Overview The next step in planning for your new business is to analyze the cost behaviors and systems of

May 28, 2025

ACC 202 Milestone Two Guidelines and Rubric

Overview

The next step in planning for your new business is to analyze the cost behaviors and systems of your industry and conduct the relevant financial calculations to determine appropriate costing solutions. In this milestone assignment, you will conduct a break-even analysis to determine your target profits and the selling price you plan to use to achieve these profits for each product.

Directions

Use information from Milestone One and provided in the Milestone Two Market Research Data Appendix, which is linked in the Supporting Materials section below, to conduct a cost-volume profit analysis. Complete the Contribution Margin Analysis and Break-Even Analysis tabs in the Project Workbook, linked in the What to Submit section below, that you used for completing the Milestone One assignment.

Specifically, you must address the following rubric criteria:

Contribution Margin: Determine your contribution margin per unit in the Contribution Margin Analysis tab.
- Choose a sales price for each product.
- Calculate the contribution margin for each product based on your sales price and the variable cost for that product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
Break-Even Analysis: Use cost-volume-profit (CVP) analysis to determine your break-even points for achieving your target profits in the Break-Even Analysis tab.
- Determine the break-even points for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
- Determine break-even units for the suggested target profits for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

What to Submit

Submit the Project Workbook with the Contribution Margin Analysis and Break-Even Analysis tabs completed. This file should be completed and submitted using Microsoft Excel.

Supporting Materials
The following resource supports your work on this assignment:

Reading: Milestone Two Market Research Data Appendix

Milestone Two Rubric

CriteriaExceeds ExpectationsMeets ExpectationsPartially Meets ExpectationsDoes Not Meet ExpectationsValueContribution Margin: Sales PriceChooses a sales price for each product (100%)N/AN/ADoes not attempt criterion (0%)10Contribution MarginCalculates the contribution margin for each product, with no errors (100%)Calculates the contribution margin for each product, with some errors (85%)N/ADoes not attempt criterion (0%)20Break-Even Analysis: Break-Even PointsDetermines the break-even points for each product, with no errors; shows work through calculations or formulas (100%)Determines the break-even points for each product, with minimal errors (85%)Determines the break-even points for each product, with significant errors (55%)Does not attempt criterion (0%)30Break-Even Analysis: Target ProfitsDetermines break-even units for the suggested target profits for each product, with no errors; shows work through calculations or formulas (100%)Determines break-even units for the suggested target profits for each product, with minimal errors (85%)Determines break-even units for the suggested target profits for each product, with significant errors (55%)Does not attempt criterion (0%)40Total:100%

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