4-2 Milestone Two: Cost-Volume-Profit Analysis
Use information from Milestone One and the provided Milestone Two Market Research Data Appendix Word Document to conduct a cost-volume profit analysis. Complete the “Contribution Margin Analysis” and “Break-Even Analysis” tabs in the Project Workbook Spreadsheet that you used for completing the Milestone One assignment.
Specifically, you must address the following rubric criteria:
Contribution Margin. Determine your contribution margin per unit in the “Contribution Margin Analysis” tab.
Choose a sales price for each product.
Calculate the contribution margin for each product based on your sales price and the variable cost for that product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
Break-Even Analysis. Use cost-volume-profit (CVP) analysis to determine your break-even points for achieving your target profits in the “Break-Even Analysis” tab.
Determine the break-even points for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
Determine break-even units for the suggested target profits for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
