The final area you have been asked to evaluate is related to the company's feasibility to produce a new product, an ottoman. The management team wants to understand the quantity and sales needed for this product to be profitable. To determine this, you decide to conduct a break-even analysis to calculate the number of ottomans and the total sales needed for the company to break even.

• Synthesize the results of your calculations to determine the feasibility of the company to make a profit based on the sales & marketing projections and recommend solutions to the management team that would help to ensure profitability for the ottoman project.
• Summarize how understanding and utilizing break-even analysis can impact managerial decision making.

My calculations are attached.

Break Even Analysis Selling Price .5 120.00 Variable Costs S 46.00 Fixed Costs 5 21,460.00 Breakeven Quantity 290 Total Sales at Break Even S 34,800.00