Calculate the contribution margin for each product

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Reference no: EM133875250

Overview
The next step in planning for your new business is to analyze the cost behaviors and systems of your industry and conduct the relevant financial calculations to determine appropriate costing solutions. In this milestone assignment, you will conduct a break-even analysis to determine your target profits and the selling price you plan to use to achieve these profits for each product.

Directions
Use information from Milestone One and provided in the Milestone Two Market Research Data Appendix, which is linked in the Supporting Materials section below, to conduct a cost-volume profit analysis. Complete the Contribution Margin Analysis and Break-Even Analysis tabs in the Project Workbook, linked in the What to Submit section below, that you used for completing the Milestone One assignment.

Specifically, you must address the following rubric criteria:

Contribution Margin: Determine your contribution margin per unit in the Contribution Margin Analysis tab.
Choose a sales price for each product. Get online assignment help from Ph.D. experts!

Calculate the contribution margin for each product based on your sales price and the variable cost for that product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

Break-Even Analysis: Use cost-volume-profit (CVP) analysis to determine your break-even points for achieving your target profits in the Break-Even Analysis tab.

Determine the break-even points for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

Determine break-even units for the suggested target profits for each product.

Reference no: EM133875250

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