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M4-A1 ManagementAssignment 1: Discussion—Importance of CVP AnalysisMickelle Bride, the CEO of Harmony Organ, was very excited about the new methods of looking at costs you showed her previously (fix

M4-A1 Management

Assignment 1: Discussion—Importance of CVP Analysis

Mickelle Bride, the CEO of Harmony Organ, was very excited about the new methods of looking at costs you showed her previously (fixed cost, variable cost, and semi-variable cost, the importance of cost, visual fit, high-low, and least-squares regression.)

Due to her enthusiasm, you have decided to introduce her to some additional tools she may be able to use in her organization. Discuss the concepts of a break-even (BE) point and CVP analysis and why they are important in business. Give appropriate examples to support your views.

Use the Argosy online library to locate at least one resource that will support your answer.

Write your initial response in 3–4 paragraphs. Apply APA standards to citation of sources.

By the due date assigned, post your response to the Discussion Area. Through the end of the module, review and comment on at least two peers’ responses.

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*** *** ********** ***** AnalysisNameCourseDate              CVP *** ********** Point AnalysisIntroductionThe Breakeven ***** ******** ** **** ** *** ****** cost ****** ****** analysis **** ****** ****** ******** ** the **** suggests ***** ******* ***** and ***** ** the ************ ** ***** ** ******** ************* ******* *** ***** components *** *************** ******** ********* the components ** *** ******** ********* *** cost and ***** volume ****** *** *** ****** *** *** ******** ****** ******** break-even ******** target ****** the ****** of ****** contribution ****** *** **** ********************** ******** ** only ******** **** *** ******* ********* **** *********** ** *** ************ The ***** assumption ** that ***** are ******* **** ***** and ******** ********** only ***** ** ** element ** ***** cost ** *********** ** *** **** ***** ***** *** variable cost *** unit and the ***** fixed ***** *** ******** and *** ******** ** *** ******** level * ****** ************ is ********* ** exist ******* cost *** ****** **** * ******** range *** ********** ** **** *** ************ **** with *** relevant range ***** ******* ***** ***** ***** ********* ******** ***** per **** or ********* ***** ***** ***** ****** 2016) Others assumptions ******* *** ******* ***** ** * constant *** **** **** ** ******* ** ********* since all *** ***** ******** are sold ***** assumptions *** ******** ** ****** *** ******** ********* ************* ************ ****** ***** the ******** *** ******* makes ****** ********* *** ***** ***** ********* ** ** ****** the number of ***** that *** ********* to ********** ** *** company’s ***** cost ********* It ** ******** ** the ***** revenue less *** variable ***** in *** ************ *** ************ ****** ** **** **** to ******* the contribution margin ***** The ************ margin ***** is ******** ******* the ******** of the ************ margin *** *** ******* *** ratio ***** *** ******* * ****** ****** ** *** ***** ******* *********** towards ********** the ***** ***** ** **** ******* *** ********** ** *** ******* ** sales **** contributes towards *** ******* ***** *** break-even point is ********** break-even point ensures **** *** ******* **** not ********** a **** ** its ******** ****** ** ***** ** is *** sales ****** **** ***** *** ******* **** ****** *** zero losses ** ** the point at ***** *** fixed costs *** ***** to *** contribution ****** After *** break-even ***** *** company ***** ******* ** additional sales ********* * company has ** sell **** **** *** ********** ***** ** ***** ****** ****** **** *** break-even point *** margin ** safety can ** ********** *** *** ******* ****** ***** *** margin ** ****** ** *** ***** volume that is ***** the break-even ***** ** ** computed by *********** *** break-even ***** ***** **** *** ***** ***** ****** *** ********** can ** ******* **** *** ***** sales ****** ** ****** *** ****** ** safety ** * percentage *** ********** point **** ***** ** *** *********** of *** garget ****** *** breakeven ***** is ****** *** above the break-even point *** intended ****** ** ****** ** **** *** ***** ***** *** **** ******* **** the ************ margin *** result will ******* *** ****** of sales required ** ****** *** ******* profits ** the ******************** ******** provides *** organization with ** ******* into the ************ ******* cost ****** and profit *** ******* *** understand **** ******* **** an ****** on *** firm’s ************* *** *** ***** *** ******* ** budget in for *** ********** The break-even point ******** *** instance **** **** the ******* *** units ** ********** ******** *** *** ******* ** ****** *** profitability It **** **** **** *** ****** ** ******** ***** **** will ** incurred ****** *** ******* is ********** With ********** analysis *** ******* will **** ** ********* budget *** the least acceptable ********** unitsCVP ******** also helps the ******* ** ****** ******** ** ***** ** the maximum ***** needed *** *** company ** ****** ************* ******* *** ****** ****** ******** *** ******* *** ********* *** ***** ****** ** requires to attain its ******* ******* *** company is **** able ** ********* the **** profitable **** *********** The ****** ** ****** **** enables *** ******* to determine its security in making ******* It *** ********** ** ** **** ******** to **** ******* under ******** *********************** ******** ** ****** ********* ** *** ********** ***** analysis contribution margin target profit and ****** ** ****** ******** ** ******** a ****** of *********** **** **** it possible ** ******* *** integral components *** ********** ** *** CVP ******** help *** ******* ** ****** ******** and ********* **** ******* ********* **** to *** CVP analysis ** ******* *** ******** ***** decisions ** is possible ** ******* the ********** in profitability ******* *** ************ ****** *** ************ ***** ********** can *** the CVP ******** ********* ** *** ****** ******* *** ******* *** costs more accurately The *** ** *** CVP ******** components *** *** the ******* ** assessing *** overall *********** ****** ***** *** ******** *********** creates **** ***** ** ********* ** *** ************ *** ************ ** *** ******** *** ********* ******* ******* **** there ** ********* efficiency in ******** ************************ * ****** ************ ** **** accounting *********** ****** ***********

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