Marketing Term Paper About Applied Marketing - 275 Words

Marketing Term Paper About Applied Marketing (Term Paper Sample) Content: Name:Professor:Subject:Date:Cost, Volume and profit AnalysisIntroductionCost, volume and profit analysis is very important in decision making. It helps the decision makers to make pricing decision and the minimum cost that they can use to maximize profits. It also helps in determining the breakeven point and contribution margin which is simply the difference between selling price per unit and the variable cost per unit. To determine the breakeven point, cost must be classified as either fixed or variable since breakeven point is the determined by dividing fixed cost with contribution margin.Variable cost per unitElectricity0.016Wages of a baker0.074Advertisement0.007Rent0.034Total variable cost0.131Fixed CostsSalary of manager3500Fixed Cost3500a) Break even pointFixed CostContribution35000.619 = 5654unitsb) Contribution margin based on the average consumer price(Price Per unit sales-Variable Cost per unit)(0.75-0.131) = 0.619c) New Contribution margin if the sales volume doubleBreakeven point =Fixed CostContribution3500Contribution margin = 11308Contribution margin = $0.31d) New Market returns(0.75-0.31) = $0.440.44 x 11308 = $4980e) Market Return on InvestmentReturns/Capital employed49801224...