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The project I picked was coffee, this project is on Cost Volume Profit , please do it in excel , I need help on numbers
The project I picked was coffee, this project is on Cost Volume Profit , please do it in excel , I need help on numbers 1 through ten
PROJECT 2: BUSINESS PLAN n purpose. Examples of possible products could be cookies, birdhouses, or custom t-shirts. This proect s be finished by a group of students Qverview: Select a product that you could make and can bring to class for presenet is to ts. This project is to Assume that you have decided to start a small business producing and selling this product. Part I: CVP analysis: You will be applying the concepts of cost-volume-profit analysis to this potential venture. 1. Describe your product. What market are you targeting this product for? What price will you sell your product for? Make projections of your sales in units over each of the upcoming four months. 2. Make a detailed list of all the material needed to make your product. Include quantities needed for esch material. Also include the cost of the material on a per-unit basis. 3. Make a list of all of the equipment you will need to make your product. Estimate the cost of each piece of equipment that you will need. 4. Make a list of all other expenses that would be needed to create your product. Examples of other expenses would be rent, utilities, and insurance. Estimate the cost of each of these expenses each month. 5. Now classify all of the expenses you have listed as being either fixed or variable. For mixed expenses, separate the expense into the fixed component and the variable component. 6. Calculate how many units of your product you will need to sell to break even in each of the four months you have projected 7. Expect three independent changes that will incur in the second, third and fourth months, and assess how your break-even point will change due to that change. And think of the possible solutions to maintain your break-even point. Calculate the margin of safety in units for each of the four months in your projection. Now decide bow much you would like to make in before-tax operating income (target pro in each of the upcoming four months. Calculate how many units you would need to sell in ach of the upcoming months to meet these target profit levels. ow realistic is your potential venture? Do you think you would be able to break even in h of the projected four months? How risky is your venture (use the margin of safety to answer this question). Do you think your target profits are achievable
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