Prepare a detailed product cost breakdown.

Prepare a detailed product cost breakdown, showing variable costs per unit (note: production variable cost used as value of inventory), selling price per unit, contribution per unit, total fixed costs, fixed costs per unit, and profit per unit …. this information is required for:
(a)the most likely level of activity i.e. the expected outcomes which you will have built into your balance sheets and profit & loss accounts

(b) a level of activity which exceeds your expectations (i.e. a ‘best case’)

(c) a level which is some way below your expectations (your worst case)

(d) one graphical cost-volume-profit analysis which shows: total revenues; total fixed and variable costs; the expected break-even point; margin of safety; contribution and profit at all feasible activity levels considered above.
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Added on 19.04.2016 18:38
Prepare a detailed product cost breakdown, showing variable costs per unit (note: production variable cost used as value of inventory), selling price per unit, contribution per unit, total fixed costs, fixed costs per unit, and profit per unit …. this information is required for:
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Added on 19.04.2016 18:39
States clearly what the business idea is and provides a backdrop to the venture by discussing the market for this product/service and the economic environment for your business. (Marks will be given for relating your imaginary case to the real world as much as possible);

Explains the assumptions used in the report and the accounting treatment of: stock values, depreciation, and any other areas of subjective judgement which would appear within the company accounting reports;

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