BUSM0029 Decision Making for Business
BUSM0029 Decision Making for Business
Applied Project Template Individual Assessment
Assessment Marks and Weighting (50 marks 30% weighting)
Word limit 1000 words
In preparation for the peer-review assessment, do not include your name or student ID, on this document.
REMEMBER: Rename the file name and remove all the RED writing before submitting your work (including this sentence and the word Template in the title above).
Refer to the Applied Project Guide document on how to complete this template.
The template has been created with five sections which you are required to complete.
The space provided in each section is not an indication of the length of the required response. Please use the word count provided in each section as a guide to determine the length of your response.
The sections that need to be completed in this template are:
Section Description
1 Introduction and overview
2 Calculation and data presentation
2.1 Income Statement
2.2 Balance Sheet (including pie charts)
2.3 Cost-Volume-Profit (CVP)
3 Business Decision (including statistical factors)
4 Conclusion
5 Reference List
Introduction and Overview (approximately 75 words) (Introduce the project and provide an outline of what will be covered. You should also include whether or not the product should be manufactured and the reasons for it)
Calculation and data presentation (completing this section is equivalent to 350 words) (no analyses are required in this section)
2.1 Income Statement
Battery for Life Ltd
Projected Income Statement (complete the title)
$ $
Sales Gross Profit Operating Expenses Operating Profit/EBIT Profit before tax Net profit
2.2 Balance Sheet
Battery for Life Ltd
Projected Balance Sheet (complete the title)
Current Assets $ $
Non-Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities Net Assets Equity Total Equity Capital Structure Pie Chart (create a fully labelled pie chart in Excel and insert it below, but do not submit the Excel file)
2.3 Cost-Volume-Profit (CVP)
(where applicable, round your answers appropriately to whole numbers, especially the BEP and sales units) (ensure you include the relevant unit/expression such as $ or unit)
Electric Vehicle Battery Working Answer
1 Contribution Margin (CM)
($/per unit) 2 Break-even point (BEP)
(in units) 3 Sales units required for $7m profit
(in units) Answer
4 Define BEP 5 Explain the importance of the BEP calculated from (2) above
Business Decision (approximately 475 words)
3.1 Overall decision and rationale
(Decide whether or not the company should manufacture EVB. You need to incorporate key data calculated in requirements 2.1 to 2.3 to support your decision) (approximately 375 words)
3.2 Consider basic statistics to aid decision (Use statistical data provided in the guide to explain the mean and standard deviation success rates to justify your decision. You should start by defining the mean and standard deviation. Refer to module modules 3 and 4 for more information) (approximately 100 words)
Conclusion (approximately 100 words) (summarise the project and draw a strong conclusion on whether or not to manufacture the EVB. Ensure you tie the conclusion back to the introduction)
Reference List (not included in the total word count) (Use credible sources, use Harvard WesternSydU referencing style and ensure your technique is correct for books, journal articles, websites, media etc. Take special note of things such as the use of italics, commas, angle brackets, viewed date rather than available at etc. If you have a reference here, then you must ensure citations are also provided in the report)
END OF DOCUMENT -
BUSM0029 Decision Making for Business
Applied Project Guide (50 marks 30% weighting)
Word limit 1000 words
In this project, you are required to use accounting and statistical analyses to make a business decision on whether or not a product should be manufactured. To ensure that you capture all the necessary data, a Word template for your project has been provided as a guide. You will also need to use Excel to create a pie chart as required in 2(c) below.
It is important that you delete all writing highlighted in red in the Word template before submitting the project. These are provided as guidelines only and should not form part of your submitted work. Also, please DO NOT include your name and student ID in the Word template, as the file will be used for the peer-review assessment.
Note that there are no right or wrong answers in the applied project. The decision you make will be determined by your calculations and analyses of the product.
You are given a project scenario for manufacturing electric vehicle batteries (EVB) and the necessary data relating to the product. Use the data to complete the requirements outlined below. The scenario is on page 2 and data are on pages 3-4.
Required (as provided in the Word template)
Introduction and overview. (5 marks)
Calculation and data presentation. (20 marks)
Use Table A to prepare the income statement (using the EBIT method) for the year ended 30 June 2022. (6 marks)
Use Table B to prepare the balance sheet (using the statement method) as at 30 June 2022. (6 marks)
Create a fully labelled pie chart for the products capital structure. Fully labelled means that you must include the title, legend and the percentages for each segment of the pie. The capital structure should contain total liabilities and total equity. You should create the pie chart in Excel then copy and paste it into your Word document. (3 marks)
Cost-Volume-Profit (CVP) calculations and explanations. (5 marks)
Business decision use key information you have calculated from requirement 2 to explain and support your decision whether or not the EVB should be manufactured. You will also need to use statistical data provided at Table C to justify your decision (no calculations are required). (10 marks)
Conclusion summarise your report and tie it back to the introduction. (5 marks)
Referencing (3 marks)
Grammar, punctuation and spelling (5 marks)
Word limit and formatting. The word limit is 1,000 words and the formatting requirements are 12-point font size with 1.5 line spacing. Format is already done in the template but ensure to keep it consistent if you make any changes to the document. (2 marks)
Ensure that you proofread your work before submission.
Scenario (do not use this paragraph as your introduction)
There have been significant discussions on climate change recently and the Australian Federal Government is providing financial incentives to businesses that shifts to clean energy. Your company, Battery for Life Ltd, is conducting a feasibility study on whether or not to manufacture electric vehicle batteries (EVB). The data relating to the product are provided below and you are required to use your accounting and statistics knowledge to evaluate if the company should manufacture EVB or not.
Note: In order to make a decision, ensure that you prepare the income statement, balance sheet and cost-volume-profit calculations.
Electric Vehicle Battery (EVB)
Use the data below to prepare the Income Statement in the Word template document
The projected total sales for the EVB for the year ended 30 June 2022 are $8,000,000 and the projected total costs and operating expenses are as follows:
Table A
Item Amount ($)
Cost of goods sold 1,200,000
Sales Salaries expense 450,000
Office Salaries expense 400,000
Advertising expense 350,000
Office supplies expense 328,000
Rent expense 840,000
Insurance expense 230,000
Utilities expense 290,000
Depreciation expense 282,000
Interest expense 280,000
Interest revenue 80,000
Tax expense 350,000
Use the data below to prepare the Balance Sheet in the Word template document
The projected assets, liabilities and equity of Battery for Life Ltd as at 30 June 2022 are as follows:
Table B
Accounts Amount ($)
Accounts receivable 4,600,000
Accounts payable 5,200,000
Bank 950,000
Capital 15,000,000
Dividends paid 650,000
Equipment 12,000,000
Fixtures 2,500,000
GST Collected 800,000
GST Paid 350,000
Inventory 1,950,000
Land and Buildings 28,000,000
Mortgage 27,000,000
Cost-Volume-Profit (CVP)
Answer the questions below in the Word template document
This section relates to Table A. Each electric car battery sells for $6,400 and the variable cost per battery is $1,600. Variable costs include sales salaries, advertising and cost of goods sold. All other costs are fixed, and they totalled $3,000,000.
Determine:
the contribution margin (CM) in dollars per unit ($/unit)
the break-even point (BEP) in units
the sales units required to achieve a profit $7,000,000
Define BEP
Explain the importance of BEP calculated from (2) above
Where applicable, round your answers appropriately to whole numbers, especially the BEP and sales units.
Statistical Data
The data contained in the table below relates to the business decision section 3.2 of the Word template. At this section, you are asked to include a brief explanation of the statistical data from Table C below for the EVB compared to the industry average and how the data is used to support your decision to manufacture or not manufacture the EVB.
You should start by defining the mean and the standard deviation, before comparing to the industry average and making a decision. Refer to modules 3 and 4 for more information.
Table C
Electric Vehicle Battery (EVB) Industry Average
Mean success rate (last 5 years) 80% 85%
Standard Deviation of success rate 6% 10%
End of Applied Project Guide
MARKING CRITERIA AND STANDARDS (TOTAL MARKS 50)
Criteria High Distinction Distinction Credit Pass Unsatisfactory
Introduction and overview (5 marks) Provides a brief introduction of the project, preview of the content, business decision and reasons for the decision Provides a brief introduction of the project, preview of the content, business decision and/or reasons for the decision Provides a brief introduction of the project, and/or preview of the content, business decision and/or reasons for the decision Provides a brief introduction of the project, or preview of the content, or business decision or reasons for the decision There is no introduction or a vague attempt at an introduction with little relevant content and outline
5-4.5 4 3.5 3-2.5 2-0
Income Statement (6 marks) All calculations, workings and table are complete and correct Most calculations, workings and table are complete and correct Some calculations, workings and/or table are complete and correct Few calculations, workings or table are complete and correct There is no relevant information or incomplete information
6-5.5 5-4.5 4 3.5-3 2.5-0
Balance Sheet (6 marks) All calculations, workings and table are complete and correct Most calculations, workings and table are complete and correct Some calculations, workings and/or table are complete and correct Few calculations, workings or table are complete and correct There is no relevant information or incomplete information
6-5.5 5-4.5 4 3.5-3 2.5-0
Pie Chart (3 marks) All calculations and pie chart title, legend and data are complete and correct Most calculations and pie chart title, legend and data are complete and correct Some calculations and/or pie chart title, legend and data are complete and correct Few calculations or pie chart title, legend or data are complete and correct There is no relevant or incomplete information
3 2.5 2 1.5 1-0
CVP and Explanations (5 marks) All calculations, workings, explanations and table are complete and correct Most calculations, workings, explanations and table are complete and correct Some calculations, workings, explanations and/or table are complete and correct Few calculations, workings, explanations or table are complete and correct There is no relevant information or incomplete information
5-4.5 4 3.5 3-2.5 2-0
Use data to support a business decision (10 marks) Provides full explanations with all relevant data, including statistical data, to support a business decision Provides some explanations with some relevant data, including statistical data, to support a business decision Provides few explanations with few relevant data, including statistical data, to support a business decision Provides few explanations but did not include relevant data, including statistical data, to support a business decision There is no relevant information or relevant data, including statistical data, were not used to make a business decision
10-8.5 8-7.5 7 6.5-5 4.5-0
Criteria High Distinction Distinction Credit Pass Unsatisfactory
Conclusion (5 marks) Concluding paragraph summarises and draws a clear, effective conclusion and enhances the impact of the project Concluding paragraph follows and summarises the project discussion and effectively draws a conclusion Concluding paragraph follows and summarises the project discussion and fairly draws a conclusion Concluding paragraph present but does not summarise the project discussion Concluding paragraph is not apparent or is not related to the project topic
5-4.5 4 3.5 3-2.5 2-0
Referencing (3 marks) Perfect referencing with no errors (in-text citation and reference list) Very good referencing with minimal errors (in-text citation and reference list) Satisfactory referencing with some errors (in-text citation and/or reference list) Poor referencing with substantial errors (in-text citation and/or reference list) No referencing provided (in- text citation and/or reference list) or poor attempt at referencing
3 2.5 2 1.5 1-0
Grammar, spelling and punctuation (5 marks) Very coherent writing style and minimal grammatical, spelling and punctuation errors Coherent writing style and very few grammatical, spelling and punctuation errors Less than coherent writing style and some grammatical, spelling and punctuation errors Writing style is unclear and many grammatical, spelling and punctuation errors Very poor grammar, significant spelling and punctuation errors
5-4.5 4 3.5 3-2.5 2-0
Word limit and formatting (1,000 words, 12-point font with 1.5-line spacing) (2 marks) Adhered to word limit and followed formatting instructions N/A N/A N/A Did not adhere to word limit or follow formatting instructions
2 0
