Mgt 599 Analysis Assignment

MGT599 SLP Name Course Tutors Name Date Introduction This simulation analysis uses cost profit analysis as a tool to develop a strategy for three tablets sold by Clipboard Tablet Company. The analysis involves ricing, customer preferences, variable costs, fixed costs and the allocation of RD expenditure. The three tablets are X5, X6, and X7. The bases of the analysis are the decisions made in SLP2 and Joes default decisions in the simulation. Cost Volume Profit (CVP) analysis focuses primarily on the effects of different levels of activity on the financial results of a business. The reason for this focus is that in the short run price and costs are known with certainty. CVP analysis is helpful regardless of the number of products that a company sells but is more complex in multiple products situations like the one in this simulation. There are two major complications relating to multi-product CVP analysis. First, it is unusual for any company to sell the same proportion of products. Secondly, products will differ in their unit selling price and variable costs (Drury, 2009). Analysis of 2011 At the end of 2011, X5 had a contribution margin of 47.4 or 135 per unit, X6 had a