During this course, you will learn about two key concepts; the break-even analysis and expenses. For your research paper, you will be responsible to help a start-up company determine their costs and the break-even point. Below is more information on the company.
AYC Shoes just started to develop their own line of custom sneakers. The company has asked you, as a consultant, to prepare a financial plan that includes the following:
1. Variable and fixed expenses for the shoe manufacturing (you can find this information by researching other shoe companies, such as Nike, Adidas, Puma, etc.)
2. Based on the expenses that the organization will have, determine the price that they should sell the shoes for.
3. After deciding on the pricing scale and using the expenses you determined in Question #1, determine the break-even point for the organization.
Your submission should include the following:
1. Overview of what the break-even point is (include research)
2. Discuss how expenses are determined and analyzed (fixed and variable)
3. Provide the financial information as listed above for AYC Shoes
· Use introduction, body paragraph, and conclusion headings
· Your paper should be 3 to 4 pages in length
· At least 5 references of an academic or scholarly source are required for this paper. You are expected to use academic sources in peer-reviewed database or Internet sources, such as: “.org”, “.edu”, “.mil”, “.gov”, “.zm” Sources not allowed are Wikipedia, Dictionaries, wikis, or blogs.
· Use APA, 6th edition, writing style for in-text citations and each reference source that you use. Remember, all wording that is not your own must be cited.
o For APA writing assistance, select “APA Format Resources” on the Begin Here section of the Modules Tab
· Limit the use of direct quotes. Direct quotes should not exceed ½ page in total. Deductions will result if this rule is violated.
· Use 12-point Times New Roman font, 1-inch margins, and double-spacing.
· The cover sheet should include group member’s names and course information
· Include a reference page in APA 6th edition style.