You are starting a new company Decide on a business and products. The company must have...

 

Transcribed Image Text:

You are starting a new company Decide on a business and products. The company must have at least 3 products Make a projected Income statement for the business for the first month - specify the cost classifications (DM/DL/MOH as well as variable costs and fixed costs) Make the cost structure of each product in detail : direct materials, direct labour and all overheads (you will need to calculate MOH rates to do this) Present basic targets for the business, i.e. CVP analysis and target volume and target profit for the year Explain why you chose this cost structure and operating leverage Show all calculations Explain the business case for the product - i.e. strategy on how you will achieve these business volumes – low cost strategy, high volume strategy etc You are starting a new company Decide on a business and products. The company must have at least 3 products Make a projected Income statement for the business for the first month - specify the cost classifications (DM/DL/MOH as well as variable costs and fixed costs) Make the cost structure of each product in detail : direct materials, direct labour and all overheads (you will need to calculate MOH rates to do this) Present basic targets for the business, i.e. CVP analysis and target volume and target profit for the year Explain why you chose this cost structure and operating leverage Show all calculations Explain the business case for the product - i.e. strategy on how you will achieve these business volumes – low cost strategy, high volume strategy etc

Answer rating: 100% (QA)

Income Statement An income statement is one of the four basic financial statements It is prepared to ... View the full answer