Wk 5 – cost-volume-profit analysis

Purpose of Assignment 

The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and brink of protection analyses which allows students to habit agoing through a office scenario and applying these tools in overseerial conclusion making. 

Resources
  • Cost-Volume-Profit Analysis Grading Guide
  • Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC) 
  • Tutorial succor on Excel and Word functions can be root on the Microsoft Office website. There are also joined tutorials via the web offering assistance for Office products. 

Scenario: Mary Willis is the advertising overseer for Bargain Shoe Store. She is presently agoing on a main promotional campaign. Her ideas grasp the installation of a new lighting scheme and acceptiond unfold intervenience that succeed add $24,000 in unroving costs to the $270,000 in unroving costs presently elapsed. In specification, Mary is proposing a 5% worth decline ($40 to $38) succeed profit a 20% acception in sales compass (20,000 to 24,000). Variable costs succeed accrue at $24 per couple of shoes. Conduct is thoughtful succeeding a while Mary's ideas but restless environing the goods these changes succeed bear on the break-even aim and the brink of protection.

Assignment Steps

Complete the following: 

  • Compute the present break-even aim in units, and parallel it to the break-even aim in units if Mary's ideas are used.
  • Compute the brink of protection narration for present operations and succeeding Mary's changes are introduced (Round to unswerving ample percent).
  • Prepare a CVP (Cost-Volume-Profit) proceeds declaration for present operations and succeeding Mary's changes are introduced.

Prepare a culmination 700-word ambagious memo to conduct addressing Mary's suggested changes. 

  • Explain whether Mary's changes should be adopted. Why or why not? Analyze the over advice (three bullet aims over) and use this advice to assistance your impulse.

Show your composition in Microsoft Word or Excel. 

Complete calculations/computations using Microsoft Word or Excel. 

Submit your ordinance.

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