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CVP Analysis Exercise

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I am having a problem developing analysis for the exercise in this link https://forio.com/simulate/michael.garmon/tablet-development-sim/simulation/#p=page0

I need to provide an alternate strategy however I don't understand how review X5, X6, and X7 - its life cycle, and how each product stacks up in terms of price and performance. Financial review for each product - X5, X6, and X7 - sales, costs, profitability, prices, unit margins, etc. Market review: New Sales, Repeat Sales, Market Saturation, etc... I need to develop the what pricing and R&D allocations, etc., I would have put in place over the last four years, 2012 - 2015.

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Solution Summary

The expert examines CVP analysis exercise. The response addresses the query posted in 1349 words with APA references.

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The response addresses the query posted in 1349 words with APA references
//Clipboard Tablets Company manufactures three products that include X5, X6, and X7. In the following discussion, there will be an exploration of the price strategy and Research & Development strategy to enhance the performance of all the three products with the consideration of different phases of the product lifecycle. There will be an elaboration of strategies over 2012 and 2013 for the overall improvement of the company.//
The cumulative profit score in 2011 was 81,571,138 that will be improved by 2015 regarding the rational strategy for pricing and Research and Development expenses (R&D expense). The Cost Volume Analysis, with the simulation process, can provide assistance to improve the overall situation. The product X5 is in maturity phase, and it is price sensitive that means the strategy regarding pricing and R&D expense should be taken on the basis of price and performance of the product. The product X6 is in the growth phase, and it has no price sensitivity that means there is a need to consider performance without focusing on the price. The product X7 needs to be introduced in the market that means there will be a loss for a couple of years because of taking the time to establish in the market.
Year 2012
The strategy regarding the product X5 is to reduce the price by $10 that means the new price will be $275 with the increase in R&D expense to 40%. The price and the suitability of the product are important for improving the overall performance of the product. The strategy regarding the product X6 is to increase the R&D expense to 44% with the increase in the price to $440. The price of X7 should be reduced to $180 with an increase in the R&D expense to 37% so as to establish the product in the market (Tan, 2014).
Input variables:
(see the table)
Simulation Results:
The score in 2012 has reached 352,243,200. ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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