How would you use CVP analysis to develop a budget?

Create 5–7-page document in Microsoft Word that includes both the memo and the paper.

Review standard office memo templates available on the internet and create the one-page memo in Microsoft Word considering the audience to whom this information needs to be presented.

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Part I: Using CVP Analysis for Business Decisions

Respond to the following:

How will you use CVP analysis to make business decisions at your workplace? Support your answer with examples.

Using an example from your workplace, distinguish between variable and fixed cost structures. Why might different managers assess the same cost differently?

How would you use CVP analysis to develop a budget? Elaborate using examples.

How can the sales department use the CVP tool when analyzing customer profitability?

Part II. Performing CVP Analysis

Continuing with the same scenario as in previous assignments for Compnet, complete the following:

Select the links that follow to download and review the files containing the financial data of the product line.

Compnet Balance Sheet Income Statement

Compnet Budget Template

Recalculate the break-even point on the basis of the following what-if scenarios:

Variable costs increase by 5 percent.

The sales price decreases by 10 percent due to an increase in competition.

Click here

to access the CVP template and use it to perform your calculations

  • Create a 4-6 page paper that includes the above calculations and analyzes the decision options.
  • Create a one-page memo for your senior management that summarizes your findings and provides recommendations

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