Expert answer:InstructionsIllustrate 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.pdf
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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%
…
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