Business Finance 2023 Week 3 Course Project
2023 You are an economist for the Vanda Laye Corporation which produces and distributes outdoor cooking supplies The company has come
You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.
The new owners are evaluating the operating structure, and you have two possible alternatives. One alternative requires a high level of investment in fixed costs compared to the other alternative. Jorge, your supervisor, has assigned you the task of evaluating the two alternatives.
Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table. (please see attachment for table)
Alternative 1
Alternative 2
Variable costs
$2.20
$2.70
Fixed costs
$80,000
$30,000
Total assets
$350,000
$350,000
Tasks:
Jorge has asked you to provide detailed responses to the following questions:
- Analyze how the CVP analysis helps management in the planning stage of a new business.
- What is the break-even quantity for each of the investment alternatives?
- Analyze the breakeven differences between the two alternatives. What does the breakeven quantity tell you?
- Which alternative would you recommend to the company? Explain the pros and cons of each alternative and the reasons for your selection.
Submission Details:
- Submit a 3-4 page Microsoft Word document, using APA style.
- Name your file: SU_MBA5004_W3_CP_LastName_FirstInitial.doc
We give our students 100% satisfaction for their assignment, which is one of the most important reasons students prefer us from other helpers. Our professional group and planners have more than ten years of rich experience. The only reason that our inception days, we have helped more than 100000 students with their assignments successfully. Our expert’s group have more than 2200 professionals of different topics, and that not all; we get more than 300 jobs every day more than 90% of the assignment get the conversion for payment.
Place Order NOw
