Module $9$: Break Even Assignment

Start Assignment

Due Sunday by $11$:$59$pm Points $100$ Submitting a file upload Available after Jan $3$ at $12$ am

For this assignment, you have another brilliant idea that you want to propose to your manager. You want to sell t$-$shirts on the company intranet site to employees to make more money. The t$-$shirts can be purchased by employees for themselves, family members, suppliers, or customers. You have found a vendor that can supply you the t$-$shirts, with the company logo for $$5\mathrm{.}00$ per $t-$shirt.

Working with the attached Excel spreadsheet, you are to determine the number of units you need to sell, and the dollar value required to break even with this new venture.

Once you have calculated the break$-$even and contribution margin, you are to submit a memo to your manager and include the following:

Introduction

Should include the proposal you are introducing to your manager.

Break$-$Even Analysis

Why is break$-$even analysis used?

How many units do you need to sell to break even? Explain how you arrive at the number of units needed to breakeven.

What is the contribution to the company for each t$-$shirt that is sold? Explain what a contribution margin means in a break even analysis.

How much revenue do you need to break even? Explain how you arrive at the revenue amount needed to breakeven.

Conclusion

Overall, would you recommend this new venture to your boss? If so$,$ why? If not, why? Based on the results, do you think your manager would approve this new venture?

The memo can be $1-2$ pages $($or more if you feel the need$)$

PLEASE BE SURE TO INCLUDE THE EXCEL FILE WITH YOUR SUBBreak$-$Even Analysis

Assumptions:

Revenue

Sales price per unit

Fixed Costs

Rent

Electricity

Utilities

Total Fixed Costs

Variable Costs

Materials

Calculations:

Contribution Margin

Break$-$Even Unit Calculation

Break$-$Even $-$ Dollar Amount

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