Break-even Analysis
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Week 4 Assignment: Break-Even Analysis Calculate your break-even analysis. Increase your cost by 10% and re-calculate your break-even analysis. Now, increase your cost another 10% and re-calculate your break-even analysis. Next, start with your original break-even analysis. Decrease your expenses by 10% and recalculate your break-even analysis. Now, decrease your expenses another 10% and re-calculate your break-even analysis. Submit all 5 calculations in a Word document with the following: •When increasing your costs, how much sooner do you reach your break-even? How would the increases in cost be received by your customer? •When decreasing your expenses, how much sooner do you reach your break-even? How realistic would the decreases in expenses be for your venture? •What is your final break-even analysis, the one you will use for your venture? Explain. Assignment Rubric: 1- Current Break-Even 25%. Calculated current break-even: Correctly calculated current break-even analysis; showed all calculations. 2- Increased Cost 15%. Calculated break-even with increased costs: Correctly calculated break-even analysis with an increase in cost twice, 10% each increase; showed all calculations. 3- Decreased Expenses 15%. Calculated break-even with decreased expenses: Correctly calculated break-even analysis with a decrease in expenses twice, 10% each decrease; showed all calculations. 4- Break-even Analysis 25%. Determined best break-even: Used all 5 break-even calculations, determined best break-even for your venture; in explanation, referred to how increasing costs would be received by customers and how realistic decreasing expenses would be for your venture; detailed with critical thought. 5- Writing Mechanics 10%. Clarity in writing, spelling, grammar: The writing was clear and had no spelling and grammar errors. 6- APA Format 10%. Proper in-text citations and reference page for APA format: Both in-text citations and references ere in APA format, had no formatting errors.
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