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The Purchase point Project is a Senior Capstone Project.

It should be written at a professional level.

Your Purchase Point Project #500895 would receive a grade of 1 for plagiarism (see #3 below). It is being returned a second time to enable you to correct your errors.

1)For Step 1, there are over 30 Form and Substance errors with each being worth one point. Each error should be written as to indicate where the error occurs in the document, what the error is and how it should have been written correctly. (See page 23 of the instructions for how the errors should be presented.)

2)For Step 2, many of the figures are incorrect. While you have Total Revenues, Total Fixed Costs and Total Variable Costs, there are no Contribution Margin calculations nor are there breakeven calculations in terms of carts or in terms of stores. (See below.)

3)For Step 3, missing citations for work that is not your own to include facts, figures, etc. is called plagiarism. There should be citations for each of the figures from where the information came from. Also, what you submitted was only 25% of the stores that are listed in Table 2.

Step 1 and Step 3 should be submitted in a Word document. Step 2 is more easily done in an Excel spreadsheet.

Be sure to include the information from the Writing Guidelines in each document submitted as either a cover sheet or in the heading of the Word document or at the top of the Excel spreadsheet.(This is an easy 10 points as part of the grading if correctly done which you did not include.)

For Step 2, as per the instructions, the data should be presented in an “Income Statement” format showing the revenues less the variable costs to get the contribution margin and CM per Unit/Cart, from which the fixed costs are subtracted to get the net income and the Break Even Points for the Carts and Shoes. See the following details for the formatting and calculations. This is how they should be worked out and presented to arrive at the breakeven information. (This can also be submitted separately as an Excel spreadsheet or included as part of the Word Document along with Steps 1 & 3in table format.)

Calculation of First Years Break Even Point
Note Jan Feb Mar Apr etc…
Stores
Multiply by 200 carts
Total Carts (000 omitted)
Multiply by Revenue per Cart
Total Revenues (000 omitted)
Variable Costs (VC)
Amortization (2year S/L)
Printing
Replacement (even distribution)
Cart Rental (10% Revenue)
Mktg, Sales & Comm.
Grocery Store Operations
Total VC
Contribution Margin (CM)
CM per Unit/Cart
Fixed Costs (FC)
Accounting & Audit
Advertising (even distribution)
Auto Lease
Bank Charges
Entertainment & Promotion
Insurance
Legal
Management Fees
Office & Sundry
Public Relations
Rent
Salaries & Benefits
Stationary & Printing
Telephone & Fax
Travel & Accommodation
Total FC
Total Expenses (VC + FC)
Net Operating Income
Break Even Point in terms of carts
Break Even Point in terms of stores

Please rework and resubmit the project for grading. The next time it is submitted it will be graded accordingly as is.

If you have any questions, feel free to contact an instructor.