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Cost Value Profit (CVP) Analysis in Simulation

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Write a 4- to 6-page paper, not including cover and reference page, in which, after again reviewing and analyzing the results that you got in SLP2 (Time Warp 1 decisions), you develop a revised strategy and make a case for this new strategy using analysis and relevant theories.

KEYS TO THE ASSIGNMENT

The key aspects of this assignment that should be covered and taken into account in preparing your paper include:

The revised strategy consists of the Prices, Research and Development (R&D) Allocation %, and any product discontinuations for the X5, X6, and X7 tablets for each of the four years: 2012, 2013, 2014, and 2015.

You must present a rational justification for this strategy. In other words, you must make a case for your proposed strategy using financial analysis and relevant theories.

Use the CVP Calculator and review the PowerPoint that explains CVP and provides some examples.

You need to crunch some numbers (CVP Analysis) to help you determine your prices and R&D allocations.

Make sure your proposed changes in strategy are firmly based in this analysis of financial and market data and sound business principles.

Present your analysis professionally making strategic use of tables, charts and graphs.

Time Line Summary:
SLP1

2015: Hired on December 15.
Turned in first report to Sally a few days early on December 30.
Celebrated on December 31.

SLP2

Time Warp 1 begins: January 1, 2016 warps into January 1, 2012.
You realize you have to make decisions for 2012 - 2015, which you do.
December 31, 2015 - You have gone through all four years, and you write your report to summarize how you did. You are hoping that you will wake up tomorrow and it will be 2016.

SLP3

Time Warp 2 begins: January 1, 2016 warps into January 1, 2012. (Again)
Now it is January 1, 2012: You decide to use CVP analysis and develop a four-year plan for your strategy. You analyze the results of your first decisions in Time Warp 1 and make notes. You use the CVP Calculator to help develop a strategy, and make more notes explaining your logic and analysis.

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Solution Summary

This solution explains the use of cost value profit analysis to determine research and development allocation. The sources used are also included in the solution.

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Similar Posting

Tablet Development Simulation: Time Warp 2.

It's New Year's Day, 2016. You just had a great New Year's Eve celebration; you finished analyzing the performance of Tablet Development and are ready to charge ahead into the future. As you turn on the TV and try to open your eyes, you notice something strange (again). The TV commentator is saying something about New Year's Day, 2012. You have a sinking feeling, and sure enough, it's back to 1/1/2012. You realize that you are in Time Warp 2. This time you decide to do your decision making differently. You are going to use a technique that you became familiar with last year, CVP analysis. And you are going to decide all of your decisions at once. No feeling your way through it this time. You are going to make all of your decisions now, for the next four years and just cruise through it this time.

You analyze the results of your first set of decisions that you made in Time Warp 1, from 2012 to 2015. You have the data, you kept it all. But now you are going to use CVP analysis to help you determine your new strategy. And you have a tool to use, the CVP Calculator.

You analyze the results using CVP and develop your complete four year strategy. You decide to make notes about your analysis and your reasoning process; just in case you have to do this again (You are praying that you can finally move ahead this time when you get to 2016.)

You finish your report that shows your strategy that you are going to use these next four years during Time Warp 2. And stop and take a big breath before you move ahead into 2012. Please, don't run the simulation, yet. Just turn in this report.

Time Warp 2 begins: 1/1/2016 WARPS INTO 1/1/2012 (Again)

Question: Reviewing and analyzing the results of previous report (Time Warp 1 decisions), develop a revised strategy and make a case for this new strategy using analysis and relevant theories.

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