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Paper , Order, or Assignment Requirements

1. Answer the following questions in essay format.
2. Your essay must include an introduction, body, and conclusion, and address all relevant parts of each question. Your response should be a minimum of 300 words in length. Make sure to cite any references you use. At a minimum, you must cite your textbook. Proper citation format for a reference includes the name of the author(s), the title of the work, the date of the publication, and the page number.

Cost-Volume-Profit Analysis
Suppose you have decided to start a business producing and selling a product of your choice from the following options: custom birthday cakes, lawn mowers or sport jackets.
For your essay, answer the following questions related to your product:
• Briefly describe the product you would produce and sell. What market will you target this product for? At what price would you sell your product? Make a projection of your sales in units for the first year of operations.
• Make a detailed list of the materials needed to make your product. (Use the textbook and/or outside research as necessary.) How much in materials will you need for the year? What is the cost of these materials?
• Make a list of expenses you would incur in your business venture. (Use the textbook and/or outside research as necessary.) Examples include rent, utilities, insurance, direct labor, manufacturing overhead costs and so on. Estimate the cost of each of these expenses per year.
• Classify all of your expenses as either fixed or variable, and calculate how many units of your product you would need to sell to break even.
• How much operating income would you like to earn in the first year? Calculate how many units you would need to sell to meet your target profit.
• How realistic is your potential venture? Do you think your target profit is achievable? Explain.


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