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Module 5 SLP Essay Example

The results showed that the increase in the prices lead to a drastic decrease in the breakeven value. The products X6 was also sold on the same prices and decreased R&D expenditure, the results remained the same the slight decrease in the R&D resulted in lower value of the breakeven volume. The value change was not very high due to the slight reduction of the R&D expenditure. The product X7 showed a decrease in the breakeven which show that the company can expand on increasing the marketing expenditure for the product X7 the product is new in the market and therefore requires hire marketing budget and the company will be able to earn quick revenues if the product is marketed in the best possible way.The marketing expenditure could also be done to aware people about the changes in the features of products (X5 and X6). The enhanced marketing would aware the customers about the latest upgrades and the sales could increase. In the year 2013 the brand X6 was performing very well and the company thought of increasing the R&D for the product in the year 2014. The change in R&D was done to enhance the features of the product in the later years.The R&D expenditures were further decreased and the prices for the X5 were raised so that the Breakeven Volume could be decreased to more extent. The company aimed to increase the features for the product X6 and therefore the R&D expenditure was raised. The raise in the R&D percentage resulted in higher Breakeven Volume for the company, which means that the company has to sell more of product X6 to generate profits. The company was suggested to maintain a steady R&D expenditure and there for the expenditure was expected to go down in the next year. The product X5 was expected to be withdrawn from the product line as the product has completed a good five years and the demand was low for the product.The R&D percentage was reduced to zero percent, which shows that the company wanted to cut all the costs related to the product X5, the reduction of the R&D resulted in the decrease in the breakeven volume. The product is expected to be discontinued from 2016. The other products performed well in the year 2015, the R&D expenditure and the price of X6 were reduced to attract more customers and the company did so and the earnings were maintained. The increment was noted in the price of X7 and the R&D allocation for the product was reduced. This lead to a decrease in the breakeven volume and the profits generated

References

Drury, C. M. (2013). Management and Cost Accunting. New York City: Springer.

Groot, T., & Selto, F. (2013). Advanced Management Accounting. New York City: Pearson.

Machuga, S., & Smith, C. (2013). A Case Method Approach of Teaching How Cost-Volume-Profit Analysis is Connected to the Flexible Budgeting Process and Variance Analysis. Journal of Accounting and Finance, 13 (6), 178 - 192.

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preview essay on Module 5 SLP
  • Pages: 4 (1000 words)
  • Document Type: Assignment
  • Subject: Professional
  • Level: College
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