Break-even Analysis
Poster Presentation
December 2, 2018Microelectronics – Circuit Analysis and Design
December 2, 2018Break-even Analysis
- Financials
a. Break-even Analysis (indicate the components of fixed costs, variable costs, and breakeven sales volume and revenue amount and indicate changes over the turns.)
b. Linking Expenses to Strategy and Tactics (Elaborate your understanding on how your STP decision influence the fixed and variable costs of your product offering as well as the profitability and growth of your business.)
c. Contribution Margin (Contribution Margin = (Total Revenue – COGS*Units Sold)/Total Revenue. Provide a chart to explain the trend of contribution margin over the turns.)
| Name: | Group Final: Net Profit | Lecturer: | Zhen Zhu | ||||||
| Description: | Group Game Assignment (Condition 2: Net Profit): The computer game results and the After-game Marketing Plan Outline are both important (30% vs. 70%). Market condition may change turn to turn. Each player starts with $6,000 marketing budget. The total computer game score depends on net profit (60%), market share (20%), and customer satisfaction score (20%). (Note: customer satisfaction score = (Characteristic Score + Feature Score + Price Score + Message Score + Interest Level)/5.)
Submit your written report in a WORD doc and your group presentation in PPTs through this Assignment Submission folder. This assignment is due 1pm of Dec. 4th, 2018. |
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| Turn: | Turn 1 | ||||||||
| Cashflow Report: | |||||||||
| Corporation | KevGear | Troy Taylor | Alpine High | Team 6 | Team 5 | Team 4 | |||
| Gross Profit | $706.00 | $1,212.00 | $275.00 | $2,431.00 | $3,276.00 | $4,684.36 | |||
| Gross Margin | 28% | 22% | 21% | 30% | 31% | 36% | |||
| Starting Balance | $10,000.00 | $10,000.00 | $10,000.00 | $10,000.00 | $10,000.00 | $10,000.00 | |||
| Units Sold | 70 | 354 | 22 | 257 | 282 | 302 | |||
| Unit Price | $60.00 | $30.00 | $110.00 | $50.00 | $60.00 | $69.00 | |||
| Unit Cost | $26.00 | $12.00 | $48.00 | $22.00 | $26.00 | $28.00 | |||
| Total Revenue | $2,526.00 | $5,460.00 | $1,331.00 | $8,085.00 | $10,608.00 | $13,140.36 | |||
| COGS | $1,820.00 | $4,248.00 | $1,056.00 | $5,654.00 | $7,332.00 | $8,456.00 | |||
| Market Costs | $3,200.00 | $900.00 | $6,000.00 | $1,000.00 | $650.00 | $1,650.00 | |||
| Distribution Costs | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | |||
| Total Fixed Costs | $3,200.00 | $900.00 | $6,000.00 | $1,000.00 | $650.00 | $1,650.00 | |||
| Total Cost | $5,020.00 | $5,148.00 | $7,056.00 | $6,654.00 | $7,982.00 | $10,106.00 | |||
| Net Profit | -$2,494.00 | $312.00 | -$5,725.00 | $1,431.00 | $2,626.00 | $3,034.36 | |||
| Contribution Margin | $10.09 | $3.42 | $12.50 | $9.46 | $11.62 | $15.51 | |||
| Final Balance | $7,506.00 | $10,312.00 | $4,275.00 | $11,431.00 | $12,626.00 | $13,034.36 | |||
| Key Performance Indicators: | |||||||||
| Corporation | KevGear | Troy Taylor | Alpine High | Team 6 | Team 5 | Team 4 | |||
| Target Segment | University Students | School Children | Outdoor Enthusiasts | Urban Commuters | Urban Commuters | Urban Commuters | |||
| Characteristics Score | 84 | 77 | 52 | 76 | 87 | 87 | |||
| Features Score | 0 | 31 | 22 | 54 | 54 | 54 | |||
| Average Appeal Score | 42 | 54 | 37 | 65 | 70 | 70 | |||
| Price Score | 2 | 4 | 3 | 4 | 4 | 3 | |||
| Message Score | 8 | 10 | 10 | 0 | 9 | 13 | |||
| Interest Level | 18 | 18 | 19 | 18 | 18 | 19 | |||
| Media Spending | $3,200.00 | $900.00 | $6,000.00 | $1,000.00 | $650.00 | $1,650.00 | |||
| Average Margin | $20.50 | $10.50 | $37.25 | $13.70 | $16.84 | $21.26 | |||
| Distributor Deficit | No | No | No | No | No | No | |||
| Profit | -$2,494.00 | $312.00 | -$5,725.00 | $1,431.00 | $2,626.00 | $3,034.36 | |||
| Profit Rank | 5 | 4 | 6 | 3 | 2 | 1 | |||
| Market Share | 6% | 13% | 3% | 20% | 26% | 32% | |||
| Market Share Rank | 5 | 4 | 6 | 3 | 2 | 1 | |||
| Largest Distributor Available | Yes | Yes | Yes | Yes | Yes | Yes | |||
| Decisions | |||||||||
| KevGear | |||||||||
| KevGear has targeted the segment University Students | |||||||||
| KevGear adopts the Rounded Top model | |||||||||
| KevGear replaces Thin Spaghetti straps with Wide Padded | |||||||||
| KevGear changes to Eco-Friendly | |||||||||
| KevGear adds a Waterproofing | |||||||||
| KevGear recolors their backpack Green | |||||||||
| KevGear increases price from 0.00 to 60.00 | |||||||||
| KevGear added a distribution deal with Direct | |||||||||
| KevGear added a distribution deal with Department Store | |||||||||
| KevGear added Top 40 to its advertising platform | |||||||||
| KevGear added Smart to its messages | |||||||||
| Troy Taylor | |||||||||
| Troy Taylor has targeted the segment School Children | |||||||||
| Troy Taylor replaces Thin Spaghetti straps with Basic | |||||||||
| Troy Taylor adds a Water Bottle | |||||||||
| Troy Taylor recolors their backpack Red | |||||||||
| Troy Taylor increases price from 0.00 to 30.00 | |||||||||
| Troy Taylor added a distribution deal with Direct | |||||||||
| Troy Taylor added a distribution deal with Discount Retail Chain | |||||||||
| Troy Taylor added Comic Book to its advertising platform | |||||||||
| Troy Taylor added Fun to its messages | |||||||||
| Alpine High | |||||||||
| Alpine High has targeted the segment Outdoor Enthusiasts | |||||||||
| Alpine High adopts the Large Rectangular model | |||||||||
| Alpine High replaces Thin Spaghetti straps with Wide Padded | |||||||||
| Alpine High replaces Wide Padded straps with Wide + Chest | |||||||||
| Alpine High adds a GPS | |||||||||
| Alpine High recolors their backpack Blue | |||||||||
| Alpine High increases price from 0.00 to 110.00 | |||||||||
| Alpine High added a distribution deal with Direct | |||||||||
| Alpine High added a distribution deal with Department Store | |||||||||
| Alpine High added Wilderness Cable Network to its advertising platform | |||||||||
| Alpine High added Peak Performance to its messages | |||||||||
| Team 6 | |||||||||
| Team 6 replaces Thin Spaghetti straps with Wide Padded | |||||||||
| Team 6 adopts the Rounded Top model | |||||||||
| Team 6 adds a Laptop Sleeve | |||||||||
| Team 6 recolors their backpack Black | |||||||||
| Team 6 increases price from 0.00 to 50.00 | |||||||||
| Team 6 added a distribution deal with University Store | |||||||||
| Team 6 added a distribution deal with Online Discount Retailer | |||||||||
| Team 6 added a distribution deal with Department Store | |||||||||
| Team 6 added a distribution deal with High End Outdoor | |||||||||
| Team 6 added Sports Talk Radio to its advertising platform | |||||||||
| Team 6 removed Great Value from its messages | |||||||||
| Team 6 added Tough to its messages | |||||||||
| Team 6 added High Quality to its messages | |||||||||
| Team 6 added Professional to its messages | |||||||||
| Team 6 added Smart to its messages | |||||||||
| Team 6 added Classic to its messages | |||||||||
| Team 6 removed Lightweight from its messages | |||||||||
| Team 5 | |||||||||
| Team 5 adopts the Rounded Top model | |||||||||
| Team 5 replaces Thin Spaghetti straps with Basic | |||||||||
| Team 5 adds a Laptop Sleeve | |||||||||
| Team 5 changes to Advanced | |||||||||
| Team 5 added Classic to its messages | |||||||||
| Team 5 added Professional to its messages | |||||||||
| Team 5 removed Peak Performance from its messages | |||||||||
| Team 5 increases price from 0.00 to 60.00 | |||||||||
| Team 5 added a distribution deal with University Store | |||||||||
| Team 5 added a distribution deal with Online Discount Retailer | |||||||||
| Team 5 added a distribution deal with High End Outdoor | |||||||||
| Team 5 added a distribution deal with Department Store | |||||||||
| Team 5 added Financial Journal to its advertising platform | |||||||||
| Team 4 | |||||||||
| Team 4 adopts the Rounded Top model | |||||||||
| Team 4 replaces Thin Spaghetti straps with Basic | |||||||||
| Team 4 adds a Water Bottle | |||||||||
| Team 4 changes to Advanced | |||||||||
| Team 4 adds a Laptop Sleeve | |||||||||
| Team 4 increases price from 0.00 to 69.00 | |||||||||
| Team 4 added a distribution deal with University Store | |||||||||
| Team 4 added a distribution deal with Online Discount Retailer | |||||||||
| Team 4 added a distribution deal with Department Store | |||||||||
| Team 4 added a distribution deal with High End Outdoor | |||||||||
| Team 4 added Financial Journal to its advertising platform | |||||||||
| Team 4 added Social Media to its advertising platform | |||||||||
| Team 4 added Professional to its messages | |||||||||
| Team 4 added High Quality to its messages | |||||||||
| Products | |||||||||
| Company | Base | Straps | Material/Color | Price | Target Segment | Special Features | |||
| KevGear | Rounded Top | Wide Padded | Eco-Friendly | $60.00 | Waterproofing | ||||
| Troy Taylor | Teardrop Rucksack | Basic | Synthetic | $30.00 | Water Bottle | ||||
| Alpine High | Large Rectangular | Wide + Chest | Synthetic | $110.00 | GPS | ||||
| Team 6 | Rounded Top | Wide Padded | Synthetic | $50.00 | Laptop Sleeve | ||||
| Team 5 | Rounded Top | Basic | Advanced | $60.00 | Laptop Sleeve | ||||
| Team 4 | Rounded Top | Basic | Advanced | $69.00 | Water Bottle, Laptop Sleeve | ||||