Instructions
Illustrate a break-even analysis scenario in your industry. Discuss the relevant fixed costs, variable costs, expenses, and revenues. Also discuss a possible break-even point for your scenario.
Again, when selecting a company, choose one that is different from the one chosen for your final project. You may use the Yahoo! Industry Summary to help you in choosing a company.
For additional details, please refer to the Case Study Three Guidelines and Rubric document.
FIN 685 Case Study Three Guidelines and Rubric The break-even analysis is a widely used risk analysis methodology since it is essential to cover the expenses with the sales revenues. After a break-even analysis has been completed, the financial risk manager is then able to analyze the different costs (variable and fixed) as these relate to financial risk. This short paper assignment will provide you an opportunity to explore a break-even analysis scenario. Prompt: Select a company of your choice within your industry. The choice of company should be different from the company you will use for your final project. You may use the Yahoo! Industry Summary to help you in selecting a company. Illustrate a break-even analysis scenario in your industry. Discuss the relevant fixed costs, variable costs, expenses, and revenues. Also discu ss a possible breakeven point for your scenario. Specifically, the following critical elements must be addressed: I. II. III. Illustrate a break-even analysis scenario in your industry. Discuss relevant fixed costs, variable costs, expenses, and revenues. Discuss a possible break-even point for your scenario. Guidelines for Submission: Your paper must be submitted as a 2-page (maximum) Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least 2 sources, in addition to the textbook, cited in APA format. Critical Elements Break-Even Analysis Scenario Fixed Costs, Variable Costs, Expenses, and Revenues Possible Break-Even Point Exemplary (100%) Meets “Proficient” criteria and scenario description is particularly comprehensive Meets “Proficient” criteria and discussion is particularly comprehensive and supported by outside sources Proficient (90%) Illustrates a break-even analysis scenario in the chosen industry Discusses fixed costs, variable costs, expenses, and revenues Needs Improvement (70%) Illustrates a break-even analysis scenario in the chosen industry but lacks detail Discusses fixed costs, variable costs, expenses, and revenues but discussion lacks detail Not Evident (0%) Does not illustrate a breakeven analysis Value 30 Does not discuss fixed costs, variable costs, expenses, and revenues 30 Meets “Proficient” criteria and discussion is particularly comprehensive and supported by outside sources Discusses the possible breakeven point for the scenario Discusses possible break-even point but lacks detail Does not discuss possible break-even point 30 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy to read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Earned Total 10 100