Nobody downloaded yet

CVP Analysis - Research Paper Example

Comments (0) Cite this document
Summary
Phase 3: New Strategy Proposal using CVP Calculator for Tablet Development Corporation Product X5, X6 and X7 during period 2012-2015 Table of Contents 1 Introduction 2 Analysis of Pricing and R&D Allocation Strategy Used in Phase 2 3 Determining New Strategy for Core Products of Tablet Development Corporation 4 Conclusion References Annexes 1 Introduction Tablet Development is focused on providing high quality and custom designed applications for tablets manufacturers and operating system providers…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER96.6% of users find it useful
CVP Analysis Paper
Read TextPreview

Extract of sample "CVP Analysis"

Download file to see previous pages In order to bring a revolution in the existing business practices of the company, it is important that a new pricing strategy is devised that is based on the strategic objectives of each product individually. Furthermore, the decisions for the allocation of funds for the Research & Development (R&D) of each product should be taken individually and on annual basis to achieve the desired objectives of the product and the company. However, my strategic decision making for each year has resulted into 60% profitability in case of product X5 and 50% profitability in case of product X6. Furthermore, the increased spending on maintenance, support, enhancement and discovery for product X5 and X6 showed improved product which resulted in higher customer satisfaction. Furthermore, the discontinuation of product X7 through the four years helped in the success of the first two products. Nonetheless, a new strategy needs to be determined using contemporary strategy determining tools like Cost-Volume-Profit (CVP) analysis. 1.1 Aim The aim of this report is to discuss the new pricing and R&D allocation strategy for the core products X5, X6 and X7 using CVP analysis and calculator. 1.2 Objectives To analyse the subsequent performance and life cycles of each product due to the difference in the decisions. To determine the new pricing decisions and R&D budget allocation strategy for each core product, namely: X5, X6 and X7 taken in 4 years (i.e. from 2012-2015). To provide rationale of the proposed strategy with theoretical support. 2 Analysis of Pricing and R&D Allocation Strategy Used in Phase 2 2.1 Penetration Pricing Strategy In order to enter into the established marketplace, Tablet Development Corp. has to undertake the penetration pricing strategy. A penetration pricing strategy is used when the company has to enter into an established marketplace and to attract the market in a substantial manner through low-pricing techniques. In the year 2012, the price of product X5 was set at the lowest possible price of $180 and it was increased by $5 every year. Similarly, the price of X6 was set at $300 only and was increased by $10 each year. The product X7 was discontinued in four years. 2.2 R&D Budget Allocation Strategy Strategic distribution of the R&D budget over the years is key to the success. Therefore, only first two R&D activities require substantial investments whereas the last two requires little investment to keep it going. The R&D budget allocation was increased for product X5 and X6 in the subsequent years whereas, product X7 was allocated less percentage of the R&D budget. The less amount shows the R&D allocations for the maintenance of product X7. 3 Determining New Strategy for Core Products of Tablet Development Corporation Apple Inc. and Microsoft have been involved in developing new products on a regular basis. In this wake they incurred fixed costs related to R&D expenditures and other costs of new product development. In order to remain competitive in the global marketplace, they adopted a new method to determine the prices and R&D allocations for multiple products on a unit cost basis (Morse, 2003). They assumed that the costs of all the products will remain fixed and thus, determine a profit or a loss situation for the new product. The ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“CVP Analysis Paper Research Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/business/1444475-cvp-analysis
(CVP Analysis Paper Research Example | Topics and Well Written Essays - 1500 Words)
https://studentshare.org/business/1444475-cvp-analysis.
“CVP Analysis Paper Research Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/business/1444475-cvp-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF CVP Analysis Paper

CVP analysis

...? Accounting “All about you” activity Introduction to CVP analysis Cost–volume–profit (CVP) is an administrative management tool used in economics (Weygandt, 2009). It is a basic model designed to assist in making short-time decisions in economics based on costs incurred in the business. The information on CVP influences determination of break-even analysis. Break-even spot shows the point at which the net income is zero. Analysis of CVP makes use of variable and fixed costs. CVP examines the dynamics experienced in profits accrued by businesses due to changes in the volumes of costs of various products...
5 Pages(1250 words)Essay

Analysis Paper

...their lives. As such, Ahmed further relates that “strangers” are those individuals that do not fit into the compartmentalized realities that we construct around us; thus, since they do not fit, we shun and avoid them and provide them with an “alien” name to denote the fact that they do not belong to our given construct. For purposes of this analysis, this author has selected the area in and around the first apartment I resided while a university student. Due to the fact that the apartment building was primarily housing for college students, the understanding of what was “other” and what was a “stranger” as defined by Ahmed was quite the simple task. In this way, a type of ageism was applied to those that did not fit in...
5 Pages(1250 words)Essay

Analysis paper

... 10 March Detachment and Attachment in The Road to Sampo Road trips are done for either deeper or shallow motives. In the short story, The Road to Sampo, by Hwang Seok-young, Youngdal is on the run with no solid direction, middle-age ex-convict Chung simply wants to go home after ten years of imprisonment, and former barmaid Baek-hwa escapes her prostituted life to go back to her hometown. The Road to Sampo has been adapted to film by director Lee Man-Hee, where he made significant literary changes. This essay explores the similarities and differences between these two different media, including the visual and literary aspects of the film and vice versa. There are similarities in Youngdal’s story and what happened between him... 10 March...
6 Pages(1500 words)Movie Review

CVP ANALYSIS Coursework

...? CVP Analysis CVP Analysis What are the features of cost-volume profit (CVP) analysis? The features of cost-volume profit (CVP) analysis include the assumption that the sales price per unit, variable costs per unit and total fixed costs are all constant (John Wiley & Sons, Inc., n.d.). Another feature of the CVP is that it assumes that everything produced is sold (John Wiley & Sons, Inc., n.d.). The main feature of the CVP is that it analyzes the relationship among revenue, cost and volume and their effect on profit (Highered.mcgraw-hill.com, n.d.). The profit equation,...
3 Pages(750 words)Coursework

Analysis Paper

...?Osama Alnassir Tulley English 104 8 July Critical Analysis of “Stress Tolerance: New Challenges for Millennial College Millennial generation youngsters go through a series of transitional stages at the time they enter their college lives. This new experience of independence and challenging situations leads to stressful circumstances which are too much for students to handle, be it academic strain to achieve good grades, the degree of liberal decision-making or the pressurizing demands of mentors and parents. A powerful research study, namely “Stress Tolerance: New Challenges for Millennial College Students” has been selected for studying thoroughly on this subject-matter before drawing conclusions. This essay was written...
4 Pages(1000 words)Essay

Master Budget and CVP analysis

...Master Budget and CVP analysis Lecturer: Part One MASTER BUDGET (a) Balance of accounts receivable and payable as at 30th Nov 2012 Cash sales 70%*750000 = 525000 Accounts receivable balance 750000-525000 = AED 225000 Balance of accounts payable as at 30th Nov 2012 Accounts payable balance = 80 *346900 = 277,520 346900-277,520 = AED 69,380 (b) Sales and purchase budget for Dec 2012 Sales budget Current sales value (AED) Increase in sales (%) expected sales value 750,000 10 825,000 Purchases budget Current purchases additional purchases Total 345900 50,000 395900 (c) Budgeted cash collection schedule AED 70% of sales are paid cash i.e. 70%* 750000 = 525,000 30%...
1 Pages(250 words)Speech or Presentation

Cost-volume-profit (CVP) analysis

...CVP Analysis For New Startups CVP Analysis is even recognized as the cost-volume-profit analysis, which is an accounting technique that helps entrepreneurs in making decision regarding their businesses (Kinney, 2013). The analysis helps entrepreneurs in identifying the breakeven point or the point at which their sales and expenditure will be equal to each other. This in turn helps a new startup in identifying the number of units it should sell inorder to meet the minimum expenditure and investment it had made in the business. It will help them in identifying the time period around which the business might start making profits....
1 Pages(250 words)Essay

Guidance on CVP Analysis

...Cost-volume-profit analysis Guidance on CVP analysis The cost-volume-profit analysis is a powerful technique used by managers to access the influence of changing volume of activity on financial results thereof (Cafferky & Wentworth, 2010). The financial results include revenues, profits and costs. In which case, the management of any given organization is able to determine how profit changes with sales (volume and price) and expenses (variable and fixed). The CVP analysis performs three purposes in managerial accounting: calculation of breakeven point; calculation of target income sales; analysis of trade-offs over a...
1 Pages(250 words)Essay

Basic CVP Analysis: Graphing

...Assignment: Problem 5-19: Basic CVP Analysis: Graphing Problem 5-19: Basic CVP Analysis: Graphing Shirts Unlimited operatesa chain of shirt stores that carry many styles of shirts that are all sold at the same price. The company pays a substantial sales commission on each shirt sold along with a small basic salary. The following worksheet contains cost and revenue data for Store 36 (Garrison, Noreen, & Brewer, 2012). This paper will do some basic analysis of the company’s stores and its policies. 1. Unit CM = Selling Price per unit – Variable expenses per unit = 40 – 25 = $15.00 Profit = Unit CM x Q – Fixed expenses = 15 x Q – 300000 According to Render, Stair and Hanna (2012), the break-even point is the number of units sold... that will...
2 Pages(500 words)Essay

CASE STUDY: Cost-Volume-Profit (CVP) Analysis

...Case Study: Cost-Volume-Profit (CVP) Analysis Affiliation QUESTION Variable cost per unit= variable Marginal cost/unit + Variable Selling & Administration Cost/Unit = $ 8+ $2 = 10 Total Fixed Cost= 60,000+ $40,000 = 100,000 QUESTION 2 Variable Unit per unit remains constant with every increase in units produced that are within the relevant range. For example, if a carpet requires $20 to make, then this will be the unit cost regardless of the numbers of pieces produced. Fixed costs remain fixed up to a given production range after which they start to decreases. This is because the fixed costs are spread over more number of units. For example, if fixed costs are $60,000 for a relevant range of...
6 Pages(1500 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic CVP Analysis Paper for FREE!

Contact Us