For this assignment, you will apply cost-volume-profit principles to a situation either in your work or personal life. You will be applying the methodology in an appropriate fashion – in graphic and columnar (spreadsheet) style utilizing the break-even formula in a PowerPoint presentation. In your documentation, you should clearly describe the methodology for your project showing the break-even formula.
You will be evaluated as follows:
- Your methodology and choice of CVP application;
- Your inclusion of the Break-even formula within your Chart and clear description of project;
- Your presentation by PPT and Excel meeting all requirements neatly and accurately;
- Your calculations for break-even and target profit of $10,000;
- Your calculations and presentation of sensitivity analysis or “what-if” scenario for your project;
- Your comments/critique of another student’s CVP project by Sunday midnight.
See Assignments and Grading for the rubric for this assignment.
Directions
- Watch the following video illustrating how to construct a break-even Chart within Excel:
https://youtu.be/7MxlVMzRxa8 (Links to an external site.)
Within this 18-minute video, you will observe:
- The construction of a chart in Excel to show the exact point for break even. The exact break-even point may need to be rounded to be a whole integer (not with decimal points).
- How to construct a line graph/chart in Excel.
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