Assignment 2 Discussion—CVP Analysis.
Assignment 2: Discussion—CVP Analysis
Review Decision Case 1 (Steve and Linda Hom) starting on page 984 of your text. In your initial post, answer the two case questions:
- Compute the annual breakeven number of meals and sales revenue for the restaurant.
- Compute the number of meals and the amount of sales revenue needed to earn operating income of $75,600 for the year.
In addition, address the following in one to two paragraphs:
- Identify and discuss several qualitative factors that should be considered in the decision process in addition to the quantitative data already computed in the case assignment.
- What are the potential benefits of applying CVP analysis to business decision making?
- Provide an example of another business scenario that could benefit from CVP analysis and explain how you would apply CVP analysis in the decision-making process.
Assignment 2 Discussion—CVP Analysis
