The company plans to develop a new product: an ottoman with multiple storage compartments. The sales and marketing team has projected a demand of greater than 500 per month at a selling price of $105. The company estimates the variable cost of the ottoman at $47 with the total monthly fixed cost at $21,460.

	Break Even Analysis
	Selling Price
	Variable Costs
	Fixed Costs
	Break-even Quantity
	Total Sales at Break Even	$ -

1. Sales to Break Even

calculate the number of sales per month the company will need to make in order to break even and includes the calculations within their report. The formulas and calculations are correct.

2: Determining Feasibility and Recommending Solutions Using Break-Even Analysis

provides a thorough and detailed synthesis of the results of their calculations to determine the feasibility of the company to make a profit based on the sales & marketing projections and recommends solutions to the management team that would help to ensure profitability for the ottoman project.

3: Understanding and Utilizing Break-Even Analysis

Give a thorough and detailed summary of how understanding and utilizing break-even analysis can impact managerial decision making.

Reference & Citation

Answer rating: 100% (QA)

To calculate the breakeven quantity and sales for the ottoman project we can use the breakeven analy... View the full answer