im just a little lost on the last two sections Break-Even Analysis The general formula for calculating
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im just a little lost on the last two sections
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Break-Even Analysis The general formula for calculating break-even units is Break-even Units Total Fixed Costs/(Unit Selling Price - Unit Variable Cost) In StratSim total fixed costs can be broken into discretionary marketing expenditures as well as fixed costs for plant and overhead. The selling price is the MSRP less the dealer discount, and the cost of materials and labor make up the variable cost. In this assignment you will allocate fixed costs across a portfolio of products and calculate the break-even units for each product. A firm's production capacity is 1.4 million units, with annual fixed costs of $2.5 billion for depreciation, plant maintenance, corporate marketing, and general overhead. Additional values for the three vehicles produced and sold by the firm are shown in the table below: Vehicle X Vehicle Y Vehicle Z MSRP $13.200 $23.000 $33.600 Dealer Discount 10% 12% 16% Variable Cost $10,000 $15,000 $16.500 Advertising & Promotion $34.000.000 $76.000.000 $100.000.000 Previous Unit Sales 500,000 400.000 300.000 Break-Even Analysis The general formula for calculating break-even units is Break-even Units Total Fixed Costs/(Unit Selling Price - Unit Variable Cost) In StratSim total fixed costs can be broken into discretionary marketing expenditures as well as fixed costs for plant and overhead. The selling price is the MSRP less the dealer discount, and the cost of materials and labor make up the variable cost. In this assignment you will allocate fixed costs across a portfolio of products and calculate the break-even units for each product. A firm's production capacity is 1.4 million units, with annual fixed costs of $2.5 billion for depreciation, plant maintenance, corporate marketing, and general overhead. Additional values for the three vehicles produced and sold by the firm are shown in the table below: Vehicle X Vehicle Y Vehicle Z MSRP $13.200 $23.000 $33.600 Dealer Discount 10% 12% 16% Variable Cost $10,000 $15,000 $16.500 Advertising & Promotion $34.000.000 $76.000.000 $100.000.000 Previous Unit Sales 500,000 400.000 300.000
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