Reference no: EM13335851
Goal: Create an Excel spreadsheet to perform CVP analysis and show the relationship between price, costs, and break-even points in terms of units and dollars. Use the results to answer questions about your findings.
Scenario: Phonetronix is a small manufacturer of telephone and communications devices.
Recently, company management decided to investigate the profitability of cellular phone production. They have three different proposals to evaluate. Under all the proposals, the fixed costs for the new phone would be $110,000. Under proposal A, the selling price of the new phone would be $99 and the variable cost per unit would be $55. Under proposal B, the selling price of the phone would be $129 and the variable cost would remain the same. Under proposal C, the selling price would be $99 and the variable cost would be $49.
When you have completed your spreadsheet, answer the following questions:
1. What are the break-even points in units and dollars under proposal A?
2. How did the increased selling price under proposal B impact the break-even points in units and dollars compared to the break-even points calculated under proposal A?
3. Why did the change in variable cost under proposal C not impact the break-even points in units and dollars as significantly as proposal B did?
|
Inventory management consultant
: You are an inventory management consultant. You have been hired by Trader Joe’s to help optimize their inventory reordering points for pineapples. Specifically, you will set up a Monte Carlo simulation to find profit-maximizing reorder points for pin..
|
|
Distance-language-culture-time zone and technology
: Using real world global organizations as examples for global teams, prepare a report on an organization can best benefit from a global team, including how the organization can provide development and support for global teams. Be sure to address the i..
|
|
Economics theory and a market structure table
: Using Mcdonalds as an organization identify the market structure of that organization. Describe the characteristics of the organization that make it a specific market structure. Evaluate the effectiveness of this structure for the organization while ..
|
|
Visual-fit method based on each potential cost driver
: Cedar Rapids Implements Company produces farm implements. Cedar Rapids is in the process of measuring its manufacturing costs and is particularly interested in the costs of the manufacturing maintenance activity, since maintenance is a significant mi..
|
|
Manufacturer of telephone and communications devices
: Phonetronix is a small manufacturer of telephone and communications devices. Recently, company management decided to investigate the profitability of cellular phone production. They have three different proposals to evaluate.
|
|
Extraordinary lengths to create a shopping experience
: Today’s retailers have gone to extraordinary lengths to create a shopping experience based on more than just the products they sell and the services they offer. Clothing purveyor Abercrombie & Fitch, for instance, adorns its stores with oversized pos..
|
|
What is a MIS system
: After discussing the poor results of his operation for the financial year, Safe Coaching Services Limited (SCSL) decided to establish a proper MIS.
|
|
Strengths and limitations of this leadership style
: Which of the five leadership styles best describes you? What are the strengths and limitations of this leadership style?
|
|
Retail sales dollar is made up of merchandise cost
: The total cost valuation of a retailers inventory is $120,000, while the total retail valuation of sales was $200,000. Approximately how much of every retail sales dollar is made up of merchandise cost?
|