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For this Assignment, you will continue in your role as consultant to the Better Chair Company. During the past 3 weeks, you completed two reports for the company’s leadership on various accounting tools and measures that impact decision making. This week, the focus of your final report will be the use of break-even analysis.
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. In Doc Sharing, your Instructor will provide you with a scenario for The Better Chair Company to use for this part of the Assignment.
To complete this part, address the following:
Using the Week 7 Part 2 Assignment Template and the data provided by your Instructor in the Doc Sharing area, calculate the number of sales per month (i.e., the number of ottomans and total dollar amount) the company will need to make in order to break even.
Note: In addition to submitting your work in Excel, include your calculations within your report by copying and pasting the information from Excel.
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.
Refer to the Week 7 Assignment Rubric for specific grading elements and criteria. Your Instructor will use this grading rubric to assess your work.
This module’s four-part Assignment (submitted in Weeks 4, 5, 6, and 7) has been identified as one that could be added to your MBA Portfolio to demonstrate to current or prospective employers the skills and knowledge you have attained in your MBA program. Once you have completed this multi-part Assignment and incorporated any feedback from your Instructor, you may choose to upload the final artifact to your MBA Portfolio in the MBA HubLinks to an external site. at the Career Planning and Development Center.
Important Information:
Build your e-portfolio using the SkillsFirstLinks to an external site. Portfolios module.
Follow the MBA Portfolio InstructionsLinks to an external site. and the steps in the MBA Portfolio GuideLinks to an external site. to create, share, and update your MBA portfolio sections and document your success.
submission information
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