Explore BrainMass

Breakeven Analysis for Apple Computer's new product: Apple TV

Could you please assist me with the attached assignment
(see slp2.doc attached).

Identify any activity in your organization where you can apply breakeven analysis. You must be able to define:

? A unit of measurement for the activity
? Revenue per unit for the activity
? Variable costs for the activity
? Fixed costs for the period in the activity

If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.
Your report should include

? The name and nature of the organization
? The activity and time period you used
? The inputs you used
? Your results
? Any implications from your results

Please specify the break-even analysis using numerical calculations.

For this assignment please use APPLE COMPUTERS INC as the organization.


Solution Preview

Consider the budgeting exercise for the 'Apple TV' segment of Apple Computers Inc for the year 2008. The item considered is Apple TV.

The situation could be like this for the year 2008.

Expected sales in units for the year 2008 - 1 million units.
Variable Cost:
Material cost per unit - $ 90
Labour Cost per unit - $ 110
Fixed overhead for ...

Solution Summary

the solution fully analyzes the production costs and projected sales activity for a new product for Apple Computer. The Apple TV will be produced in 2008, and the breakeven analysis provides a calculation for the number of units which must be sold to breakeven. The calculations are complete and documented to meet the demands of the problem.