Reference no: EM131412215
Application: Break-Even Analysis
When expenses and revenues are equal, this is known as the "break-even point" or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relationship to revenues is necessary. Understanding where the BEP is for a given product or service helps managers determine how to make modifications to increase profitability.
For this Assignment, review this week's Media, the Weekly Briefing, and the information given below.
LaTricia Jones is planning to make a unique toy that will keep small children entertained for hours! She believes that parents everywhere will want to buy her toy, and she needs to determine her costs and the number of toys she needs to sell before earning a profit.
After researching her costs, she has come to the following conclusions.
The rental of a small facility will be $2,200 per month, insurance $500 per month, and other fixed costs are estimated at $1,300 per month. In this facility, she will be able to produce 100 toys per month at a variable cost for each toy of $5.00. She plans to sell them for $30 each.
The rent for a larger facility will be $5,000 per month, insurance $1,000 per month, and other fixed costs are estimated at $2,580 per month. In this facility, she will be able to produce 400 toys per month at a variable cost for each toy of $4.00. She plans to also sell them for $30 each.
The Assignment:
Part 1: Calculate the break-even point for LaTricia Jones' toy company under each of the two different scenarios using a spreadsheet program such as Excel. Be sure to apply the appropriate accounting process to determine the break-even points.
Part 2: Recommend which option, based on the scenarios for the company, that you would select using a word processing program such as Word. Support your conclusion with both a written analysis and quantitative data.
|
Determine which of the costing systems
: Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product.
|
|
Assimilation theory is attempt to understand causes
: Assimilation theory is the attempt to understand the causes of a certain event, assess responsibility for outcomes of the event, and evaluate the personal qualities of the people involved in the event. A stronger relationship between attitudes and be..
|
|
Record five sample proportions and give results
: Choose one color of bead, say red, which seems to occur relatively often in the box.- Select a random sample of 10 beads from the box, recording the sample proportion of red beads.
|
|
Present value of growing perpetuity
: If you use a discount rate of 0.09 for investment products, what is the present value of this growing perpetuity?
|
|
Calculate break-even point for latricia jones toy company
: Calculate the break-even point for LaTricia Jones' toy company under each of the two different scenarios using a spreadsheet program such as Excel. Be sure to apply the appropriate accounting process to determine the break-even points
|
|
Why teredo was developed
: Prepare a two-page memo that outlines why Teredo was developed, how it is implemented in Windows operating systems, for which types of networks it is appropriate, and how long it should be implemented.
|
|
Elements of an emergency response plan
: How often should training be provided-annually or quarterly - Which healthcare professionals should be a part of the emergency response team? Why?
|
|
Record five sample proportions for each sample size
: Using the same bead color, repeat the procedure of step 1 for samples of size- 20, 40, 80, 100- Make sure you record five sample proportions for each sample size; give the results to your instructor.
|
|
Process of controlling behavior by manipulating
: Operant conditioning is the process of controlling behavior by manipulating its consequences. Suppose you assign the least desirable tasks to a worker until he performs well and only then assign him the desired assignments he wants. This OB Mod strat..
|