An Analysis of Cost, Volume, Pricing and their effects on Profitability

Posted: January 10th, 2014

For this exercise, please choose a company (*of which, can be fictional*) to analyze one of their services provided and the corresponding particular costs, as well as the final price charged for the service/product. Then, perform a break-even analysis using an income statement to show the break-even point [(Q)Price=Fx + VCU(Q) = Break-even sales] for the company (this will show the allocation of fixed and variable costs), followed by an income statement showing the net income expected [Expected Profit ~ Margin of Safety] to be received every month (based off of the numbers from the analysis), and lastly perform an evaluation on how the company could improve their managerial accounting in that specific area.