Calculate and evaluate costs using the worksheets.Instructions: Answer the five questions below....

Question

Calculate and evaluate costs using the worksheets.
Instructions: Answer the five questions below. They focus entirely on improving the EBITDA of Largo Global Inc. (LGI) based on the information provided in the Excel workbook. Provide support for your reasoning from the readings in Project 3, Step 1, and the discussion in Project 3, Step 3. Be sure to cite your sources in APA 7th ed. style.

Provide a detailed response below each question. Use 12-point font and double spacing. Maintain the existing margins in this document. Your final Word document, including the questions, should not exceed 5 pages. Include a title page in addition to the five pages. Any tables and graphs you choose to include are excluded from the five-page limit. Name your document as follows: P3_Final_lastname_Report_date.

You must address all five questions and make full use of the information on all tabs.

You are strongly encouraged to exceed the requirements by refining your analysis. Consider other tools and techniques that were discussed in the required and recommended reading for Project 3. This means adding an in-depth explanation of what happened in the year for which data was provided to make precise recommendations to LGI.

project3excelworkbook-111021-ipby0h1t.xlsx project3questions-reporttemplate-111021-rwouu15m.docx project-3-review-and-practice-guide-hj112mux.pdf project-3-review-and-practice-guide-qf00wefn.pdf

Akshay Kumar · Accepted Answer

Instructions
	Project 3, Step 4: Instructions for This Excel Workbook
	In this Project 3 workbook, you will analyze managerial and cost information to help improve the EBITDA of LGI. 
	You will use what you have learned about cost behavior and apply activity-based costing and cost-volume-profit analysis to make recommendations about LGI’s operational productivity. 
	Use the following information to complete this workbook: 
	LGI sells Loot boxes for gaming companies. The Loot boxes come in two forms, standard and deluxe, and both are sourced from external suppliers. 
	The standard product is prepacked Loot box; LGI puts its label on it before selling it. The deluxe product is more upscale; it is customized based on the customer's specifications. The deluxe Loot box is emblazoned with the LGI label, but the boxes are sourced from much farther afield. 
	Most LGI sales come from the standard Loot box, but the marketing director believes that customization is the product of the future. He is impressed with the large margins they earn on the Deluxe Loot Boxes. 
	Open Tab 1.
	Tab 1: Determine the profit margins for each type of Loot box. First, determine the costs using the Income Statement from Project 1. 
	Tab 1:  Use Tab 1 in this worksheet to view the sales quantity (volume) and selling price for each product. LGI allocates product costs on a historical cost method. Purchases are split based on volume sold between the two types of Loot Boxes. All other overhead costs (selling, administration and depreciation costs) are split equally between the two products. 
	Tab 2: Use the additional information provided in Tab 2 and calculate a  more accurate split among the two types of Loot Boxes. 
	Tab 3. Use activity-based costing based on the cost drivers. 
	Tab 4. Use cost-volume-profit analysis to determine an alternative selling price for the deluxe Loot box.

Calculate and evaluate costs using the worksheets. Instructions: Answer the five questions below. They focus entirely on improving the EBITDA of Largo Global Inc. (LGI) based on the information...

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