How many units of your product you will have to sell

Assignment Help Accounting Basics

Reference no: EM132070355

Question: Case Study On Cost Behavior And Cost-Volume-Profit Analysis.

Prepare a narrated PowerPoint presentation or PowerPoint with VoiceThread along with supporting calculations in Excel to address the following:

1. Discuss what product your company will manufacture. Explain why you selected this product.

2. Determine the selling price for your product and estimate your sales in units for 3 years.

3. List at least 8 costs that your company will incur. You must include multiple variable costs, fixed costs, and mixed costs. Please explain why you classified each cost in the manner that you did.

4. For each of the costs that you listed above, please estimate the cost. Please keep in mind that variable costs are incurred per unit and fixed costs in total. Mixed costs have a variable and fixed cost component.

5. Calculate how many units of your product you will have to sell to break-even for the next 3 years.

6. Calculate the margin of safety in units for each of the 3 years based on your projections above.

7. In year 1, you are happy to break-even but as a group discuss what target profit you would like to make for Year 2 and 3? Based on your target profit, calculate how many units you would need to sell.

8. Realistically, do you feel manufacturing this product makes sense or is it too risky? You must justify your decision.

Reference no: EM132070355

Questions Cloud

Company should improve the international cash management : To avoid any cash problems happen again, the Open Trading Company should improve the international cash management.

Article of currency wars-lose-lose or win-win : the only policy tool left at their disposal to stimulate growth is a weaker exchange rate.” Does the Interest Rate Parity (IRP) holds in this phenomenon?

Comparing with other long-term financing means : Comparing with other long-term financing means, the foreign currency bonds usually have lower yields.

How much will profit increase : Annual fixed costs are $17,000. How much will profit increase if they sell 1,000 additional units

How many units of your product you will have to sell : Calculate how many units of your product you will have to sell to break-even for the next 3 years. Calculate the margin of safety in units.

Determine the amount of underapplied or overapplied : Use T-accounts to post the information from the journal entries - Determine the amount of under applied or overapplied overhead for September

Why is important in hr practice : Explain what is meant by this term. Why is this important in HR practice - Draw conclusions regarding the nature of the information

Find research that supports or refutes one of the trends : This week we'll be looking at outsourcing from a business perspective. Please read the 10 Business Outsourcing Trends for 2017 here.

Determine the present value of the bonds payable : Mason Co. issued $680,000 of four-year, 13% bonds with interest payable semiannually, Determine the present value of the bonds payable

User Account

All Pages