The Project Is Being Returned As Not Graded for the Following Reasons

The project is being returned as not graded for the following reasons:

As per the Writing Guidelines on page 41, information is missing.
For Step 1, there are 32 Form and Substance problems/issues and they should be written in the format given as examples on page 23 providing not only what is incorrect but where it is located so that it is identifiable. (Each one is worth 1 point.)
For Step 2, recheck your figures.
For Step 3, a table should have been included as given on page 26 along with proper citations for the information that should be included in the table.

Please rework and resubmit the project for grading.

Step 1

Summary of Errors in the Form of the PPMC Report

The Safe Harbor is the proper noun therefore the harbor should be written as Harbor.
The projected statement should be used instead of project statement in first paragraph.
The house used after Corporate, should be written as Corporate House in the first paragraph of the letter.
No line space has been used between Attention and Dear Sirs; they should be separated using line space.
The use of capital letter for Projected Statement of Net Income is not correct in the first paragraph, it should be written as projected statement of net income.
Comma should have been inserted after Yours very truly instead of semicolon.
After signature of the director, the name of the director with designation should have been used instead of designation before the name of director.
The designation of director should come after the name of the director and the name of director should come after the signature of the director.
There should be line space between attachment and designation of director.

Summary of Errors in the Substance of the PPMC Report

Both PPMC management and Corporate House are responsible to present information in a manner which does not distort the decision making of any user of the information and the information should be true and fair. It seems that both of them are considering that they are not responsible for such fair presentation of information which is not true.
There is no impact of taxation has been considered in this case which is not true. It might change the profitability of the company due to taxation. Therefore it should be made sure either there is no tax or the taxation has been ignored before making any final decision.
There is no supporting evidence or workings have been shown for revenues and some of the costs like the display unit cost of $6.22 in note 2
A transposition error has been found in note 6 for commission of third quarter. It is showing 5382000 instead of 5832000.

Step 2

Table 1
PPMC / First year
Note / Jan / Feb / March / April / May / June
Stores / 1,200 / 2,400 / 3,600 / 4,800 / 6,000 / 7,200
Multiply by 200 carts / 200 / 200 / 200 / 200 / 200 / 200
Total Carts / 240,000 / 480,000 / 720,000 / 960,000 / 1,200,000 / 1,440,000
Multiply by revenue per cart / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75
Total revenues / 1 / $ 1,620,000 / $ 3,240,000 / $ 4,860,000 / $ 6,480,000 / $ 8,100,000 / $ 9,720,000
Variable costs (VC) / $ 405,000 / $ 810,000 / $ 1,215,000 / $ 1,620,000 / $ 2,025,000 / $ 2,430,000
Fixed Cost / 2 / $ 2,296,719 / $ 2,296,719 / $ 2,296,719 / $ 2,530,319 / $ 2,530,319 / $ 2,530,319
Contribution Margin / $ 1,215,000 / $ 2,430,000 / $ 3,645,000 / $ 4,860,000 / $ 6,075,000 / $ 7,290,000
Net Operating Income / $ (1,081,719) / $ 133,281 / $ 1,348,281 / $ 2,329,681 / $ 3,544,681 / $ 4,759,681
CM Ratio / 75.00% / 75.00% / 75.00% / 75.00% / 75.00% / 75.00%
BEP in dollars / $ 3,062,292 / $ 3,062,292 / $ 3,062,292 / $ 3,373,758 / $ 3,373,758 / $ 3,373,758
BEP in Stores / 2268 / 2268 / 2268 / 2499 / 2499 / 2499
Variable Cost 1
Car rental / $ 162,000 / $ 324,000 / $ 486,000 / $ 648,000 / $ 810,000 / $ 972,000
Advertising Commission / $ 243,000 / $ 486,000 / $ 729,000 / $ 972,000 / $ 1,215,000 / $ 1,458,000
Total Variable cost / $ 405,000 / $ 810,000 / $ 1,215,000 / $ 1,620,000 / $ 2,025,000 / $ 2,430,000
Fixed Cost 2
Replacement Cost / $ 75,960 / $ 75,960 / $ 75,960 / $ 75,960 / $ 75,960 / $ 75,960
Amortization / $ 746,400 / $ 746,400 / $ 746,400 / $ 746,400 / $ 746,400 / $ 746,400
Printing insert / $ 52,800 / $ 52,800 / $ 52,800 / $ 158,400 / $ 158,400 / $ 158,400
Marketing and Advertising / $ 208,333 / $ 208,333 / $ 208,333 / $ 208,333 / $ 208,333 / $ 208,333
Booking Advertised / $ 166,667 / $ 166,667 / $ 166,667 / $ 166,667 / $ 166,667 / $ 166,667
Signing up / $ 240,000 / $ 240,000 / $ 240,000 / $ 240,000 / $ 240,000 / $ 240,000
Store contract / $ 120,000 / $ 120,000 / $ 120,000 / $ 120,000 / $ 120,000 / $ 120,000
Ad Holder / $ 480,000 / $ 480,000 / $ 480,000 / $ 480,000 / $ 480,000 / $ 480,000
Changing advertisement / $ - / $ - / $ - / $ 120,000 / $ 120,000 / $ 120,000
Ad in Magazine / $ 39,375 / $ 39,375 / $ 39,375 / $ 39,375 / $ 39,375 / $ 39,375
Salaries / $ 6,000 / $ 6,000 / $ 6,000 / $ 6,000 / $ 6,000 / $ 6,000
Audit / $ 1,250 / $ 1,250 / $ 1,250 / $ 1,250 / $ 1,250 / $ 1,250
Automobile Expense / $ 2,000 / $ 2,000 / $ 2,000 / $ 2,000 / $ 2,000 / $ 2,000
Bank Charges / $ 167 / $ 167 / $ 167 / $ 167 / $ 167 / $ 167
Entertainment / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000
Insurance / $ 8,333 / $ 8,333 / $ 8,333 / $ 8,333 / $ 8,333 / $ 8,333
Legal / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000
Management Fee / $ 24,167 / $ 24,167 / $ 24,167 / $ 24,167 / $ 24,167 / $ 24,167
Office and Sundry / $ 5,000 / $ 5,000 / $ 5,000 / $ 3,000 / $ 3,000 / $ 3,000
Public Relation / $ 33,333 / $ 33,333 / $ 33,333 / $ 33,333 / $ 33,333 / $ 33,333
Rent / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000
Salaries / $ 24,000 / $ 24,000 / $ 24,000 / $ 24,000 / $ 24,000 / $ 24,000
Salaries / $ 11,500 / $ 11,500 / $ 11,500 / $ 11,500 / $ 11,500 / $ 11,500
Benefits / $ 7,100 / $ 7,100 / $ 7,100 / $ 7,100 / $ 7,100 / $ 7,100
Stationery / $ 833 / $ 833 / $ 833 / $ 833 / $ 833 / $ 833
Telephone and Fax / $ 3,500 / $ 3,500 / $ 3,500 / $ 3,500 / $ 3,500 / $ 3,500
Travel / $ 10,000 / $ 10,000 / $ 10,000 / $ 20,000 / $ 20,000 / $ 20,000
Total Fixed Cost / $ 2,296,719 / $ 2,296,719 / $ 2,296,719 / $ 2,530,319 / $ 2,530,319 / $ 2,530,319
Table 1
PPMC / First year
Note / Jan / July / August / September / October / November / December / Total
Stores / 8,400 / 9,600 / 10,800 / 12,000 / 13,200 / 14,400 / 14,400
Multiply by 200 carts / 200 / 200 / 200 / 200 / 200 / 200 / 200
Total Carts / 1,680,000 / 1,920,000 / 2,160,000 / 2,400,000 / 2,640,000 / 2,880,000 / 2,880,000
Multiply by revenue per cart / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75 / $ 6.75
Total revenues / 1 / $ 11,340,000 / $ 12,960,000 / $ 14,580,000 / $16,200,000 / $ 17,820,000 / $ 19,440,000 / $ 126,360,000
Variable costs (VC) / $ 2,835,000 / $ 3,240,000 / $ 3,645,000 / $ 4,050,000 / $ 4,455,000 / $ 4,860,000 / $ 31,590,000
Fixed Cost / 2 / $ 2,740,519 / $ 2,740,519 / $ 2,740,519 / $ 2,957,719 / $ 2,957,719 / $ 2,957,719 / $ 31,575,824
Contribution Margin / $ 8,505,000 / $ 9,720,000 / $ 10,935,000 / $ 12,150,000 / $ 13,365,000 / $ 14,580,000 / $ 94,770,000
Net Operating Income / $ 5,764,481 / $ 6,979,481 / $ 8,194,481 / $ 9,192,281 / $ 10,407,281 / $ 11,622,281 / $ 63,194,176
CM Ratio / 75.00% / 75.00% / 75.00% / 75.00% / 75.00% / 75.00% / 75.00%
BEP in dollars / $ 3,654,025 / $ 3,654,025 / $ 3,654,025 / $ 3,943,625 / $ 3,943,625 / $ 3,943,625 / $ 42,101,099
BEP in Stores / 2707 / 2707 / 2707 / 2921 / 2921 / 2921 / 31186
Variable Cost 1
Car rental / $ 1,134,000 / $ 1,296,000 / $ 1,458,000 / $ 1,620,000 / $ 1,782,000 / $ 1,944,000 / $ 12,636,000
Advertising Commission / $ 1,701,000 / $ 1,944,000 / $ 2,187,000 / $ 2,430,000 / $ 2,673,000 / $ 2,916,000 / $ 18,954,000
Total Variable cost / $ 2,835,000 / $ 3,240,000 / $ 3,645,000 / $ 4,050,000 / $ 4,455,000 / $ 4,860,000 / $ 31,590,000
Fixed Cost 2
Replacement Cost / $ 75,960 / $ 75,960 / $ 75,960 / $ 75,960 / $ 75,960 / $ 75,960 / $ 911,520
Amortization / $ 746,400 / $ 746,400 / $ 746,400 / $ 746,400 / $ 746,400 / $ 746,400 / $ 8,956,800
Printing insert / $ 237,600 / $ 237,600 / $ 237,600 / $ 316,800 / $ 316,800 / $ 316,800 / $ 2,296,800
Marketing and Advertising / $ 208,333 / $ 208,333 / $ 208,333 / $ 208,333 / $ 208,333 / $ 208,333 / $ 2,500,000
Booking Advertised / $ 166,667 / $ 166,667 / $ 166,667 / $ 166,667 / $ 166,667 / $ 166,667 / $ 2,000,000
Signing up / $ 240,000 / $ 240,000 / $ 240,000 / $ 240,000 / $ 240,000 / $ 240,000 / $ 2,880,000
Store contract / $ 120,000 / $ 120,000 / $ 120,000 / $ 120,000 / $ 120,000 / $ 120,000 / $ 1,440,000
Ad Holder / $ 480,000 / $ 480,000 / $ 480,000 / $ 480,000 / $ 480,000 / $ 480,000 / $ 5,760,000
Changing advertisement / $ 240,000 / $ 240,000 / $ 240,000 / $ 360,000 / $ 360,000 / $ 360,000 / $ 2,160,000
Ad in Magazine / $ 39,375 / $ 39,375 / $ 39,375 / $ 39,375 / $ 39,375 / $ 39,375 / $ 472,500
Salaries / $ 6,000 / $ 6,000 / $ 6,000 / $ 8,000 / $ 8,000 / $ 8,000 / $ 78,000
Audit / $ 1,250 / $ 1,250 / $ 1,250 / $ 1,250 / $ 1,250 / $ 1,250 / $ 15,000
Automobile Expense / $ 2,000 / $ 2,000 / $ 2,000 / $ 2,000 / $ 2,000 / $ 2,000 / $ 24,000
Bank Charges / $ 167 / $ 167 / $ 167 / $ 167 / $ 167 / $ 167 / $ 2,000
Entertainment / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 120,000
Insurance / $ 8,333 / $ 8,333 / $ 8,333 / $ 8,333 / $ 8,333 / $ 8,333 / $ 100,000
Legal / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 120,000
Management Fee / $ 24,167 / $ 24,167 / $ 24,167 / $ 24,167 / $ 24,167 / $ 24,167 / $ 290,004
Office and Sundry / $ 4,000 / $ 4,000 / $ 4,000 / $ 5,000 / $ 5,000 / $ 5,000 / $ 51,000
Public Relation / $ 33,333 / $ 33,333 / $ 33,333 / $ 33,333 / $ 33,333 / $ 33,333 / $ 400,000
Rent / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 10,000 / $ 120,000
Salaries / $ 24,000 / $ 24,000 / $ 24,000 / $ 24,000 / $ 24,000 / $ 24,000 / $ 288,000
Salaries / $ 11,500 / $ 11,500 / $ 11,500 / $ 11,500 / $ 11,500 / $ 11,500 / $ 138,000
Benefits / $ 7,100 / $ 7,100 / $ 7,100 / $ 7,100 / $ 7,100 / $ 7,100 / $ 85,200
Stationery / $ 833 / $ 833 / $ 833 / $ 833 / $ 833 / $ 833 / $ 10,000
Telephone and Fax / $ 3,500 / $ 3,500 / $ 3,500 / $ 3,500 / $ 3,500 / $ 3,500 / $ 42,000
Travel / $ 30,000 / $ 30,000 / $ 30,000 / $ 45,000 / $ 45,000 / $ 45,000 / $ 315,000
Total Fixed Cost / $ 2,740,519 / $ 2,740,519 / $ 2,740,519 / $ 2,957,719 / $ 2,957,719 / $ 2,957,719 / $ 31,575,824

Step 3

Market share

As mentioned in the article whose reference is given as follows, there is more gun stores n USA as compared to grocery stores. However, there are around 36536 grocery stores, and the PPMC breakeven point is around 2921, which shows that the market share is around 2921/36536 = 8% of total market.

Reference

Business Insider. (November 6, 2016). 15000 more gun stores in America than grocery stores. Retrieved from