Assignment 1: Required Assignment 2—Cost-Volume-Profit Analysis

Assignment 1: Required Assignment 2—Cost-Volume-Profit Analysis

In this assignment, you will apply the concepts of CVP analysis learned in your Module 4. You will use CVP analysis to analyze a project of your choice to enable a prospective investor to decide if your project is worth investing in.

Assignment Overview:

Select a project, whether from work, an avocation, an entrepreneurial idea of your own, or your child’s lemonade stand on the corner. Identify the various costs required to execute the project and consider the revenue the project will generate. In a Power Point format, create a basic pro forma statement necessary to convince someone to provide the start-up costs of the project.

Assignment Tasks:

To create a pro forma statement:

1. Identify and list the various costs—fixed and variable, direct and indirect—required to execute the project. 
2. Calculate the break-even point for the project and the expected financial returns. Click here to access the CVP template to calculate the break-even point. Make sure you show your Excel formulas or provide calculations so your instructor can review your work. Save your final calculations as M4_A1_Cost-Volume-Profit_Template_Lastname_Firstname.xls. The completed template must accompany the PPT.
3. Include a brief discussion of key points of any intangible benefits or costs associated with the project. 
4. Supplement your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in.

• The detail must have enough historic data to give an investor an understanding of trends.
• You should also have sufficient written background so that a potential investor understands the business. Use the speaker notes area of your presentation to add background information that you would communicate verbally in a presentation. This should be 1 to 2 pages in length. 

Submission Details:

Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources. Your presentation should include sections addressing the topics listed. 

Develop a 10–12 slide Microsoft PowerPoint presentation. Include the required information concisely highlighting only the key points necessary for the purpose of this presentation, which is to convince a prospective investor to decide if your project is worth investing in. Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources. Your presentation should include sections addressing the topics listed and presented in bulleted format, avoiding long paragraphs of content. Include the CVP completed template sheet with the PPT.

By Monday, September 14, 2015, submit the final presentation to the M5: Assignment 1 Dropbox.

Grading Criteria

Assignment Components

Proficient

Max Points

Identify the various costs—fixed and variable, direct and indirect—required to execute the project.All costs required to implement the project are identified, discussed, and accurately listed.

80

Calculate the break-even point for the project and the expected financial returns.Calculations are complete and accurate.

60

Include a brief discussion of any intangible benefits or costs associated with the project.All benefits and costs are identified and discussed in keeping with the project details.

60

Provide sufficient background information to enable a prospective investor to decide if your company is worth investing in. The detail must have enough historic data to give an investor an understanding of trends.Sufficient written background is provided so that a potential investor understands the performance trends to drive investment.

60

Academic Writing

Write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources (i.e., APA); and display accurate spelling, grammar, and punctuation.

Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation and attribution of sources; and displayed accurate spelling, grammar, and punctuation.

40

Total:

300