BREAK EVEN ANALYSIS Break-even is the point at which a product or service stops costing money to produce and sell‚ and starts generating a profit for your business. This means sales have reached sufficient volume to cover the variable and fixed costs of producing and distributing your product. [Type the document subtitle] KOMAL BHILARE ROLL NO: 85 2013 DEFINITION Break Even is: •the sales point at which the Company neither makes profit nor suffers loss‚ or •sales level where fixed
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Business Model Mountain Man Brewing Company was a family-owned business which owned a quality beer called Mountain Man Lager. As shown in Exhibit 1‚ the Mountain Man Lager was well known as working man’s beer. Its quality taste with bitter flavor and high alcohol content were the value propositions for the products. And the key resources for these features were the special recipe and a meticulous selection of barley. Also the main customer segment for the Lager was blue collar most of whom were
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A breakeven analysis is used to determine how much sales your business needs to start making a profit. Every business wants and needs to make a profit but the only way you can determine if your product or service is profitable is by conducting a break-even analysis. This is a tool used by companies to understand how many products they have to sell in order for the company to break even. However‚ for you to understand how to come up with the breakeven analysis‚ you first need to understand the process
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With recent declining sales for Mountain Man Beer Company (MMBC)‚ Chris Prangel is considering launching Mountain Man Light as a brand extension aligned with changes in beer drinkers’ preferences. He is seeking to maximize market coverage while minimizing brand overlap‚ and at the same time avoiding any brand equity damage‚ as MMBC’s core consumer segment is significantly different from the new targeted segment. Chris expects to negate declining sales of Mountain Man Lager and capture market share
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Rochester Institute of Technology | Mountain Man Brewing Company: Bringing the Brand to Light | Advanced Corporate Financial Planning | Professor Testa 1/23/2012 | | | Objective Complete a NPV analysis to see if Mountain Man Brewing Company should implement Mountain Man Light to its existing product lines: * SWOT Analysis on Mountain Man Lager * NPV analysis for Mountain Man Lager * NPV analysis for Mountain Man Light * NPV analysis on whole company * Strategic Options
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1a. What is Chris considering doing and what factors will he have to align to be successful? Chris is considering the production of a light beer for Mountain Man Brewing Company as a way to compensate for the recent decline in sales and increase in the market for light beer sales. How can the production of a light beer appeal to a younger demographic. What about their light beer will be different from competitors. How much is this new product going to cost and how will he go about launching the
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• The breakeven analysis using the margin of safety is an invaluable tool to assess the impact of the risk of a change in revenue or costs. It is particularly useful for reviewing financial forecasts and business plans. This is illustrated as follows – Forecast 1 Forecast 2 Forecast 3 A Sales volume in units 20000 25000 25000 B Selling price per unit $100 $100 $100 C Forecast revenue A x C $2000000 $2500000 $2500000 D Variable cost per unit @$60 E Variable costs A x D $ 1200000 $1500000 $1500000
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Case Analysis On the basis of Exhibit 1‚we find that Mountain Man is having over 50 Million sales which is supposed to be good revenue having a mature business in brew market.It is also having Goss Margin having 30 % ‚which is good by Gross Profit Ratio standard.But as far as net Income after taxes is concerned it is still very good because as per NOPAT standard‚anything above 6% in normal businessis supposed to be good other things remaining same and depending in the line of business and the industry
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Mountain Man Brewing Company (MMBC) was found in 1925 as a family run business and “Mountain Man Lager” is its core product. MMBC was rated as “Best Beer in West Virginia” for years and was selected as “America’s Championship Lager” at the American Beer Championship. MMBC relied on his history and status as independent‚ family-owned brewery to create an aura of authenticity and to position the beer with its core drinkers – blue-collar‚ middle-to-lower income men over age 45. Because of the product
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MKTG324 Wenjing Xu Mountain Man Brewing Company Case Analysis Company Overview Mountain Man Brewing Company produces Mountain Man Lager; the most authentic regional beer for working class East Central Americans‚ among all premium domestic beers‚ because of its distinctive quality‚ bitter flavor‚ slightly higher than average alcohol content and competitive price . MMBC targeted its product toward the middle-aged blue collar worker in the East Central region. MMBC’s strategic focus on this
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