Question
Prepare a break even and sensitivity analysis using: 1. Cash flow and 2. Present value of cash flow. Compare the two results and explain to
Prepare a break even and sensitivity analysis using: 1. Cash flow and 2. Present value of cash flow. Compare the two results and explain to a CEO in a follow up memo explaining why computing break even is important for capital budgeting.
| Fixed Costs | $25,000 | |
| Direct Labor | 100 | |
| Direct materials | 75 | |
| Shipping | 25 | |
| Sales Commission | 50 | |
| Total VC/unit | 225 | |
| Price per unit | 500 | |
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Horngrens Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
10th Edition
0133117561, 978-0133117561
