Financial reporting
Budget: $10 – $30 USD
presentation slides
Required Task:
Break Even Point (BEP) is defined as the point where total revenue equals total costs. This is the point where the company will get zero profit. By determine company break- even point, it will help company to determine their margin of safety. Margin of safety (MOS) indicates by how much the company can decrease its sales before a loss occurs. It is the difference between the budgeted sales volume and the break-even sales volume.
To test the knowledge of students on this topic, students is requiring to present the process of calculating BEP. Create ONE (1) company situation that consists of information that related to calculation of break- even point. Situation that created by the students must consists information such as variable cost per unit, fixed cost per unit, total sales and any other cost information that students think will be relevant and required in order to calculate BEP.
Students is requiring to present the information in following manner:
1 Create and present company scenario such as the business types and introduce the product details. Students also need to present the list of cost related such as direct material cost, direct labor cost, variable overhead, fixed overhead and etc (depends on students’ creativity whether to list cost per unit or total cost as overall). Students must able to demonstrate the product.
2 Calculate and present the BEP based on the scenario that have been create in situation (1)
3 Calculate and present company margin of safety based of the total sales that you already created earlier.
4 Calculate and present company net profit.
Required Task:
Break Even Point (BEP) is defined as the point where total revenue equals total costs. This is the point where the company will get zero profit. By determine company break- even point, it will help company to determine their margin of safety. Margin of safety (MOS) indicates by how much the company can decrease its sales before a loss occurs. It is the difference between the budgeted sales volume and the break-even sales volume.
To test the knowledge of students on this topic, students is requiring to present the process of calculating BEP. Create ONE (1) company situation that consists of information that related to calculation of break- even point. Situation that created by the students must consists information such as variable cost per unit, fixed cost per unit, total sales and any other cost information that students think will be relevant and required in order to calculate BEP.
Students is requiring to present the information in following manner:
1 Create and present company scenario such as the business types and introduce the product details. Students also need to present the list of cost related such as direct material cost, direct labor cost, variable overhead, fixed overhead and etc (depends on students’ creativity whether to list cost per unit or total cost as overall). Students must able to demonstrate the product.
2 Calculate and present the BEP based on the scenario that have been create in situation (1)
3 Calculate and present company margin of safety based of the total sales that you already created earlier.
4 Calculate and present company net profit.