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The Oasis is a club that offers live entertainment. There is no cover charge as costs are covered by the sale of the beverages. The average drink costs $10. The following is the operating statement for the club last year: Sales Revenue Cost of Goods Sold Gross Margin Includes alcohol, food, glassware, plates & cutlery, hourly paid wait and kitchen staff. Entertainer Salaries ZZO, VUU 3 Rent 9,500 A Housekeeping 7,250 5 Office Supplies & Admin 500 6 Managers' & Admin Salaries 138,250 17 Depreciation 22,750 18 Total Operating Expense 403,250 19 Operating Margin 200,500 20 21 When setting up the C-V-P data table, go down by 500 units and a dozen levels. 22 23 1) Complete a CVP excel spread sheet for the above. Ensure that the excel file 24 properly completes the analysis and that all columns, headers and units are expressed. 25 (4 marks) 26 2) Using your excel file that you have completed for this question answer the following: 27 Make sure you use full sentence form answers so that you clearly present the answer. 28 1) What is the Breakeven point in units for Oasis? 29 (1 mark) 30 ii) Create a new sheet that assesses: A 10% increase in 31 revenues and a 20% increase in Entertainer Salaries. 32 What is the new Breakeven for Oasis? 33 And what is the change from your initial BE calculation 34 (2 marks for the new excel sheet and 1 mark for the answer) 35 36 37 The Oasis is a club that offers live entertainment. There is no cover charge as costs are covered by the sale of the beverages. The average drink costs $10. The following is the operating statement for the club last year: Sales Revenue Cost of Goods Sold Gross Margin Includes alcohol, food, glassware, plates & cutlery, hourly paid wait and kitchen staff. Entertainer Salaries ZZO, VUU 3 Rent 9,500 A Housekeeping 7,250 5 Office Supplies & Admin 500 6 Managers' & Admin Salaries 138,250 17 Depreciation 22,750 18 Total Operating Expense 403,250 19 Operating Margin 200,500 20 21 When setting up the C-V-P data table, go down by 500 units and a dozen levels. 22 23 1) Complete a CVP excel spread sheet for the above. Ensure that the excel file 24 properly completes the analysis and that all columns, headers and units are expressed. 25 (4 marks) 26 2) Using your excel file that you have completed for this question answer the following: 27 Make sure you use full sentence form answers so that you clearly present the answer. 28 1) What is the Breakeven point in units for Oasis? 29 (1 mark) 30 ii) Create a new sheet that assesses: A 10% increase in 31 revenues and a 20% increase in Entertainer Salaries. 32 What is the new Breakeven for Oasis? 33 And what is the change from your initial BE calculation 34 (2 marks for the new excel sheet and 1 mark for the answer) 35 36 37

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