Fitzroy Court costing
Project description
This is an activity on apportionment of costs, breakeven analysis and marginal cost pricing.
At the end of this activity you should be able to:-
• Apportion fixed costs to several products
• Use breakeven analysis to help to determine the effects of different prices
• Judge when apportioned fixed costs may be misleading in decisions about pricing
• Use Excel to create models and charts
please focus in;
What are we looking for?
(((To pass this assessment you MUST submit an individual Excel file containing:)))
• An apportionment of fixed costs and calculation of variable costs
• Break-even points for the upper and lower selling prices for each type of apartment per week
• Calculations of expected net profit per week for each apartment type, at the upper and lower proposed selling prices
(((To achieve a higher grade in this assessment you SHOULD:)))
• Provide an accurate apportionment of fixed costs and calculation of variable costs
• Deliver an accurate calculation of break-even points and profits
• Include clear, accurately labelled data in tabular form
• Use appropriate Excel functions
• Include recommendations as to how the cost data should be used in setting prices
To achieve a grade at the highest level you COULD:
• Lay out your work clearly in order to make your information clear
• Provide appropriate diagrams
• Use Excel to enable What If analysis
• Make recommendations that are clearly based on your analysis
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