Question
AYC Shoes just started to develop their own line of custom sneakers. The company has requested you as a consultant to prepare a financial plan
AYC Shoes just started to develop their own line of custom sneakers. The company has requested you as a consultant to prepare a financial plan that includes the following:
1. Variable and fixed expenses for the shoe manufacturing (you can find this 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.
The answer should include the following:
1. Overview of what the break-even point is
2. Explain how expenses are determined and analyzed (fixed and variable)
3. Provide the financial information as listed above for AYC Shoes.
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