Required: a) Using an excel sheet that shows the relevant formulas; calculate the break-even.
Required:
a) Using an excel sheet that shows the relevant formulas; calculate the break-even point
(in units as well as in dollars)for the original budgeted income statement provided above.
(Weight 10%)
b) Assuming thatAlternative (1)proposed above of reducing selling price and undertaking a marketing campaign was adopted, calculate the quantity that would need to be sold to yield a profit of $100,000.You are required to present your answers in an excel sheet that
shows the relevant formulas.
(Weight 20%)
c) RegardingAlternative(2)above,andassumingthattheorderfromanoverseascustomer for additional units was accepted, you are required to determine the volume of units that would need to be sold to the overseas customer to increase the profit from the current budgeted figure of $78,000 to the required figure of $100,000.You are required to present your answers in an excel sheet that shows the relevant formulas.
(Weight 20%)
d) It has always been argued that certain underlying assumptions place definite limitations on the use of CVP analysis. Therefore, it is essential that anyone preparing CVP information should be aware of the underlying assumptions on which the information is to be derived. If these assumptions are not recognized, serious errors may result and incorrect conclusions may be drawn from the analysis.In word format, discuss these assumptions underlying cost-volume-profit analysis.
(Weight 25%)
e) Regardingthetwoalternativesproposedabove,andtoenablethedirectorsofGonzalesto decide which alternative is favoured,in word format, you are required toprovide management with an analysis and assessment of any other factors that should be taken into accountwhen advising the directors of Gonzales with regard to these two alternatives.
(Weight 25%) (Total Marks: 10)
Our guarantees
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
Money-back guarantee
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreZero-plagiarism guarantee
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreFree-revision policy
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read morePrivacy policy
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreFair-cooperation guarantee
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more