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Required Multimedia: * How to create a Breakeven Analysis and a Target Contribution:
1. http://www.youtube.com/watch?v=Y22_AC6BN9Y
2. http://www.youtube.com/watch?v=TLOo2mY6FIw&feature=related
Required Readings:
Learning Topic: Financial Break Even analysis (separate file in this content Module)
* Simon, Herman.  Confessions of the Pricing Man, Springer International Publishing, 2015. Chapter one.  ISBN:  978-3-319-20399-7 (e-reserves)
Assignment (8%):
Learning Goals of  this assignment:
10.  Strategic Management of Financial Capital.  MBA graduates demonstrate the ability to plan, evaluate and manage the financial implications of the organization’s (global) operations.
3. Quantitative Reasoning:  You can use mathematical information, operations, and quantitative analyses to solve problems and inform decision-making
2. Critical Thinking:  You can apply logical processes to formulate clear, defensible ideas based on the analysis of facts and ethical considerations. 
1. Communication:  You can communicate clearly in writing. 
Instructions:
In this assignment, you are a consultant making data supported recommendations to a client who desires to meet a specific profit goal (income after tax). You will :
 
1. Create your own original  EXCEL file with price and cost  data from the case, separately showing all variable cost items (costs that vary with the number of  units produced)  all fixed cost items (costs that are incurred independent of the number of units produced) , and the client’s current  price per UNIT  and number of UNITS sold. 
2.  In the same Excel file, create a contribution income statement, using the format in the case, (i.e., showing price x units sold (revenue), variable costs x units sold (total variable costs), contribution per unit and total contribution; total  fixed costs.  income before and after tax.  
3. Calculate break even units at current price  
 4. Calculate the revenue required to meet income target after tax (profit)
 5.  First decision:  Raise price? Calculate the price per unit needed to reach the required income target (keeping the current volume of units sold). Explain why this might or might not be a good choice. 
 6. Second decision: Increase volume? Calculate the units to be sold (volume) under current pricing in order to reach target income.  Explain why this might or might not be a good choice. 
7. Determine whether it is best to adjust price or  volume in order to reach the client’s  target income Compare the options and explain the rationale for your choice 
8.  Prepare a narrated Powerpoint presentation to your client, summarizing your findings, your comparative analysis and your recommendations.  The narration should thoroughly reflect the logic of your analysis and will be evaluated based on the quality of this  “written” communication. (See the below  instructions on how to prepare a narrated Powerpoint presentation. 
Refer  to the below powerpoint, “Jewelry Case Hints”  for specific guidance through your analysis.  
Submit your  Excel file in  your assignment folder: that contains  the above analyses. Title your file, “Excel case week 4.”
Submit your Powerpoint presentation in your assignment folder  and title it “Presentation to Client, week 4”
The rubric to be used for this assignment is in a separate file in this content module.

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