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Assume you are a CEO of your choice of a manufacturing company. The company can be real or fictional. List your variable vs fixed costs,
Assume you are a CEO of your choice of a manufacturing company. The company can be real or fictional. List your variable vs fixed costs, and create a CVP income statement for year 1. Let your creative juices flow, but make sure the examples you use are in line with the nature of your company. The only requirements are:
Requirements:
-Cover the Outline below
-Use any numbers you like, as long as the totals / calculations flow properly
-Show your work via formulas (i.e. a + b = c) throughout.
Outline | ||
1 | Company name | |
2 | Summary of what your company sells / produces - summarize in words what your company makes (a sentence or two is fine, can include examples). | |
3 | CVP Income Statement ** | |
** Please show and quantify the following breakout of costs that feed your CVP Income Statement: | ||
4 | >> Sales | |
5 | >> Variable Costs (please list a minimum of 3 individual variable costs) | |
6 | >> Contribution Margin | |
7 | >> Fixed Costs (please list a minimum of 3 individual fixed costs) | |
8 | >> Net Income | |
9 | Can you think of an industry / business that WOULD NOT benefit from CVP (cost-volume-profit) analysis? Please explain your answer. |
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