Part II: Performing CVP Analysis
Continuing with the same scenario as in previous assignments for Compnet, complete the following:
- Select the links that follow to download and review the files containing the financial data of the product line.
- Recalculate the break-even point on the basis of the following what-if scenarios:
- Variable costs increase by 5 percent.
- The sales price decreases by 10 percent due to an increase in competition.
- Click here to access the CVP template and use it to perform your calculations.
- Create a 4-6 page paper that includes the above calculations and analyzes the decision options.
- Create a one-page memo for your senior management that summarizes your findings and provides recommendations.
Create 5–7-page document in Microsoft Word that includes both the memo and the paper.
Review standard office memo templates available on the internet and create the one-page memo in Microsoft Word considering the audience to whom this information needs to be presented.
Apply APA standards to citation of sources.
Use the following file naming convention: LastnameFirstInitial_M4_A2.doc. For example, if your name is John Smith, your document will be named SmithJ_M4_A2.doc.
By Wednesday, February 3, 2016, deliver your assignment to the M4: Assignment 2 Dropbox.
|Assignment 2 Grading Criteria|
Articulated key points in a clear, logical, and professional manner, with relevant examples and supporting evidence wherever required.
Actively contributed to the discussion by providing points of view with rationale, challenging points of the discussion, or drawing relationships between points of the discussion.
Accurately calculated the break-even points.
Analyzed the business decision options and provided recommendations
Created a one-page memo as suited to the need and audience and demonstrating professional standards.
Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; displayed accurate spelling, grammar, and punctuation.