It would look something like this next illustration

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: a true picture of fixed costs by any means, but is quite useful for determining a break-even point. The analysis included in the chart in the illustration below shows a general break-even analysis for assumed fixed costs of $94,035, average per-unit revenue of $325, and average per-unit variable cost of $248. The line on the chart shows profits increasing and crossing the break-even line at approximately 1,220 units. CHAPTER 17: FINISH THE FINANCIALS 17.7 BREAK-EVEN CHART This illustration shows the break-even analysis that compares unit sales to profits. It uses data from the table shown earlier in this section. Summary Your financial tables are interrelated. The sales and personnel forecasts and assumptions affect the profit and loss, the profit and loss affects cash, and the cash and balance sheet work together. Financial analysis is rarely a true step-by-step process. You will probably have to go back through your tables to review the assumptions for realism and accuracy. As you revise assumptions, make sure you constantly check back to keep your cash balance positive. CHAPTER 18: STRATEGY IS FOCUS With most of the financials now done, it’s time to turn to strategy and tactics. You’ve been developing strategy throughout the planning process, I know, because you can’t do the numbers without thinking about the strategy. However, now you want to explain your strategy and develop the implementation. If you refer back to the text outline we discussed in Chapter 2: Pick Your Plan, you probably have several topics still blank in your plan document. But not in your mind. It’s time to write your thoughts on strategy and tactics into your text outline. Define Overall Strategy Strategy is focus. Across the entire business, over the whole range of possibilities involving different products and services, different target customers, different kinds of financing, different levels of growth, what are your choices? What are your priorities? General Principles of Real-...
View Full Document

This note was uploaded on 01/26/2014 for the course BUINESS 102 taught by Professor Unknown during the Winter '09 term at University of Phoenix.

Ask a homework question - tutors are online