Cost/Benefit Analysis & Break-Even Analysis Project.

Slides:



Advertisements
Similar presentations
Copyright © 2006, The McGraw-Hill Companies, Inc.McGraw-Hill/Irwin Chapter Six Cost-Volume-Profit Relationships.
Advertisements

6 Slide 1 Cost Volume Profit Analysis Chapter 6 INTRODUCTION The Profit Function Breakeven Analysis Differential Cost Analysis.
Financial Decision Making 3 Break-even analysis
HAS 3020 Session Six Price. Marketing Strategy--Price Identify constraints Determine objectives Estimate demand and revenue Determine cost/volume/profit.
The Basics of Cost-Volume-Profit (CVP) Analysis Contribution margin (CM) is the difference between sales revenue and variable expenses. Next Page Click.
Finance June 2012.
1 Calculating a break-even point Aim: Students to be able to produce a breakeven graph Homework: Complete hand out.
Cost-Volume-Profit Relationships Chapter 6 © The McGraw-Hill Companies, Inc., 2000 Irwin/McGraw-Hill The Basics of Cost-Volume-Profit (CVP) Analysis.
BUILDING THE PRICE FOUNDATION C HAPTER 13. What is a Price?  Barter Price as an Indicator of Value  Value-pricing Price in the Marketing Mix  Profit.
16-1 Cost-Volume-Profit Analysis The Break Even Point and Target Profit in Units and Sales Revenue 1 Fundamental concept underlying CVP  All.
© Business Studies Online “A firm Breaks Even if it doesn’t make a profit or a loss” In other words profit = 0 For this to happen the money coming into.
Construction Accounting & Financial Management, 3/e Steven Peterson © 2013 by Pearson Higher Education, Inc Upper Saddle River, New Jersey All Rights.
Setting the Right Price. Lesson Goals: Learn how to: –Calculate total costs –Calculate a profit margin –Use break-even analysis Identify the difference.
Break Even.
Financial Algebra © 2011 Cengage Learning. All Rights Reserved. Slide BREAKEVEN ANALYSIS Determine the breakeven prices and amounts using technology.
Unit 5 Operations Management
5.3 Break-Even Analysis Chapter 32.
Reading Strategies ‘Unlocking the Text’. Revenue is all the money that comes into a business. Interest: Many businesses keep their money in a bank account.
PRICING STRATEGIES. COMPETING AGAINST FREE APPS If your app does more than free app, you can charge Free apps can (yours or another) drive sales Free.
3.3 Break-even Analysis.
5.3 Break-Even Analysis Chapter 32.
Chapter 5. Assumptions of CVP Analysis  Selling price is constant.  Costs are linear.  In multi-product companies, the sales mix is constant.  In.
McGraw-Hill /Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 6 Cost-Volume-Profit Relationships.
Chapter 7: Cost-Volume-Profit (Part 2 of 3) Sections 1 and 2 Feb 6, 2013 Professor: Khim Kelly Office: HH386B Office Hours: Mon/Wed 11:30am – 12:30pm and.
Pricing Chapter 19. Pricing Price Price Barter Barter Price equation Price equation.
2.3 RATES OF CHANGE Calc 10/1/14. Warm-up 2.3 Rates of Change - Marginals What were the rates in the warm-up problem?
Breakeven analysis. Key terms (1) Before we start studying breakeven it is essential that you understand some key terms: Breakeven is the point at which.
The Mystery of Calculating The Breakeven Point. What in the world is it? w It is the point at which a company does not make any money. w It is the calculation.
Chapter Six Cost-Volume-Profit Relationships. CVP ANALYSIS Cost Volume Profit analysis is one of the most powerful tools that helps management to make.
PRICING – DETERMINING THE PRICE Wednesday, December 8.
Chapter 32: BREAK EVEN.
Break-even L:\BUSINESS\GCE\Unit 2\Break even point.xls.
CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 15-3 Decisions That Affect Net Income.
Product Design and Development
Honors C.A.D. Mr. Grosso.  Productivity and Cost  Measures of Cost  graphic organizer  Applying this stuff!  Analyzing revenue.
@ 2012, Cengage Learning Cost Behavior and Cost-Volume-Profit Analysis LO 3b – Analyzing the Effects of Changes on the Cost-Volume-Profit Relationship.
Lecture 3 Cost-Volume-Profit Analysis. Contribution Margin The Basic Profit Equation Break-even Analysis Solving for targeted profits.
Business Finance Costs Break-Even Analysis. Revenue and Costs “Revenue” is income earned by a firm when they sell either the goods it makes or the services.
BREAK EVEN ANALYSIS  We use the breakeven analysis to look at the point where we start to make a profit in the business.  Any business wants to make.
Unit 4, Lesson 9 How the Interactions of Businesses and Consumers Determine Prices AOF Business Economics Copyright © 2008–2011 National Academy Foundation.
BREAKEVEN ANALYSIS An important tool for management decision making.
3.3 Break-even analysis Check your portfolios at Howthemarketworks.com.
Copyright © 2008 Pearson Education Canada 6-1 Chapter 6 Contemporary Business Mathematics With Canadian Applications Eighth Edition S. A. Hummelbrunner/K.
EXCERCISES ON BES. Compute the Break-even sales in pesos and units 1.A product line is sold at a unit selling price of P9.00. Variable cost is estimated.
Topic 3: Finance and Accounts
K X not 3 5 Revenues, costs and profits Richard Repairs – your local garage repair service. Reminder for November and December.
@ 2012, Cengage Learning Cost Behavior and Cost-Volume-Profit Analysis LO 3a – Understanding Break-Even.
Break-Even Analysis. Useful for: Estimating the future level of output they need to produce in order to break-even Assess the impact of planned price.
BUSS 1 Financial planning: using break- even analysis to make decisions.
Breakeven Analysis Mr. Sherpinsky Sports & Entertainment Marketing.
Break-Even Very important concept for the exam For some of you it will be building on prior knowledge.
BREAK-EVEN (BE) Unit 2 Business Development Finance GCSE Business Studies.
Calculating Break-Even. Break-Even Point … the point at which a business makes enough money to pay its costs and begins to make a profit Units Dollars.
Financial planning: break-even. Syllabus Candidates should be able to: define contribution and contribution per unit (selling price – variable cost per.
Revenues, Costs & Profit
Digital Subscriptions Uncovered
Breakeven and Breakeven Charts
THE PROBLEM. THE PROBLEM VOCAP IS THE SOLUTION FEATURES VIDEO PLAYLIST HIGHLIGHTING VOCABULARY WORD BANK VOCAP IS THE SOLUTION FEATURES.
Starter What’s the story? Title: Break-Even.
Physical activities and activity tracker
Costs, Revenue and Profit
Accounting and Financial Information
Accounting and Financial Information
Lesson 15-2 Determining Breakeven
Accounting and Financial Information
A what level of production does the business start to make a profit?
Profit-Maximizing Level for Mini-Z
Firms in Competitive Markets
Lesson 15-2 Determining Breakeven
Presentation transcript:

Cost/Benefit Analysis & Break-Even Analysis Project

Pricing Competitor's App Competitor's pricing Differences in features compared to yours Compare your graphics, sound.... How does your app compare to free apps Does your app do more than free apps on the market?

BREAK-EVEN ANALYSIS Complete this table for your app to Calculate your break-even point $4.99 iPhone/iPad App Break-Even Aalysis Fixed Development Costs Price of App on App Store Contribution Margin (Apple's Commission Deducted) Breakeven (Required paid downloads) Fixed costs/Contribution Margin Estimated Time to Breakeven 100 downloads per day Monthly revenue after break-even