Question
AYC is a company manufacturing shoes. The company just started developing their own line of custom sneakers. The company has asked a consultant to prepare
AYC is a company manufacturing shoes. The company just started developing their own line of custom sneakers. The company has asked a consultant to prepare a financial plan that includes the following:
Kindly provide answers to the following.
1. Variable and fixed expenses for the shoe manufacturing (you can find similar information by researching other shoe companies, such as Nike, Adidas, Puma, etc.)
2. Based on the expenses that the organization will have, determine the price that they should sell the shoes for.
3. After deciding on the pricing scale and using the expenses you determined in Question #1, determine the break-even point for the organization.
Further, the consultant's submission should include the following:
1. Give an overview of what the break-even point is (include research)
2. Explain how expenses are determined and analyzed (fixed and variable)
3. Provide the financial information as listed above for AYC Shoes company
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