For the last 2 years, the Homes-r-US company has experienced a fixed cost of $850,000 per year and an (r - v) value of $1.25 per unit. International competition has become severe enough that some financial changes must be made to keep market share at the current level. Perform a graphical analysis, using Excel, that estimates the effect on the breakeven point if the difference between revenue and variable cost per unit increases somewhere between 1% and 15% of its current value. If fixed costs and revenue per unit remain at their current values, what must change to make the breakeven point go down?
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
For the last 2 years, the Homes-r-US company has
experienced a fixed cost of $850,000 per year and an (r
- v) value of $1.25 per unit. International competition
has become severe enough that some financial
changes must be made to keep market share at the
current level. Perform a graphical analysis, using Excel,
that estimates the effect on the breakeven point if the
difference between revenue and variable cost per unit
increases somewhere between 1% and 15% of its
current value.
If fixed costs and revenue per unit remain at their
current values, what must change to make the
breakeven point go down?
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