Prepare a detailed product cost breakdown, showing variable costs per unit (note: production variable cost used as value of inventory), selling price per unit, contribution per unit, total fixed costs, fixed costs per unit, and profit per unit
. this information is required for:
(a)the most likely level of activity i.e. the expected outcomes which you will have built into your balance sheets and profit & loss accounts
(b) a level of activity which exceeds your expectations (i.e. a best case)
(c) a level which is some way below your expectations (your worst case)
(d) one graphical cost-volume-profit analysis which shows: total revenues; total fixed and variable costs; the expected break-even point; margin of safety; contribution and profit at all feasible activity levels considered above.
Prepare a detailed product cost breakdown, showing variable costs per unit (note: production variable cost used as value of inventory), selling price per unit, contribution per unit, total fixed costs, fixed costs per unit, and profit per unit
. this information is required for:
States clearly what the business idea is and provides a backdrop to the venture by discussing the market for this product/service and the economic environment for your business. (Marks will be given for relating your imaginary case to the real world as much as possible);
Explains the assumptions used i
n the report and the accounting treatment of: stock values, depreciation, and any other areas of subjective judgement which would appear within the company accounting reports;
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