In Module 3, you will use CVP analysis to inform the pricing of your 3 products.
You’ve now completed SLP2, and it the date is (once again) January 1, 2016.
You turn on the TV, and once again, the local television news anchor is talking about events that occurred on January 1, 2012.
Your decision-making process will be different this time, as you will be using CVP analysis, a technique with which you recently became familiar.
You analyze the results of the decisions you made in SLP2. But this time, you aim to improve your Final Total Score by using the CVP Calculator to help you determine a new and improved strategy.
You analyze your SLP2 results using CVP and develop your complete four-year strategy, again taking notes, documenting your reasoning.
You finish the report that shows your revised strategy for the next four years.
Do not run the simulation yet! Simply turn in your written report.
Write a 6- to 7-page paper, not including cover and reference pages, in which you use the results from SLP2 and CVP analysis to develop a revised strategy.
Keys to the Assignment
The key aspects of this assignment that should be covered and taken into account in preparing your paper include:
Your paper will be evaluated using the grading rubric.
Tips and Suggestions
Please note the following tips and suggestions:
You might find these downloads and readings useful:
Rehman, A. (2014). Cost-Volume-Profit relationship (CVP Analysis). Accounting for Management. Retrieved on August 27, 2014 from http://www.accountingformanagement.com/cost_volume_profit.htm
Decision Matrix Table – Download this Word doc with a blank table you can use to show your proposed strategy decisions.
PowerPoint discussing CVP – Provides a good overview of Cost Volume Profit analysis, the various equations that you can use, and how to use it. Some examples are provided showing how to use the CVP Calculator.
CVP Calculator– This an Excel-based calculator that you can use to determine prices, volumes, and profits. Keep in mind that it will tell you what need, but the market determines what you actually get.
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