MSU Nipponply Feasibility Analysis of Geographical Expansion Case Study
I need an explanation for this Accounting question to help me study.
A case study is an account of an activity, event, or problem that
contains a real or hypothetical situation and includes the
complexities you would encounter in the workplace. Case studies
require students to evaluate an ambiguous, complex business case,
perform research, and apply Managerial Accounting knowledge to
develop a solution or a series of solutions to an open-ended
problem or opportunity with potential multiple solutions. Case
studies and due dates are identified on the Course Schedule.
Each case will have its own requirements and questions to answer,
however a well-presented case study should, in general, include the
following sections:
· Problem and solution
· Executive summary
· Brief history
· Industry analysis
· Company analysis
· Alternatives
· Implementation
Nipponply: Analyzing the Feasibility of Geographical
Expansion
Learning Objectives:
1. Use CVP analysis as a tool to decide the quantity of products required for
a break-even point.
2. Evaluate the feasibility of a project idea.
3. Determine the minimum capacity utilization to reach break-even.
4. Determine the impact of capacity utilization on return on equity and
return on investment.
5. Determine the level of capacity utilization needed to obtain the desired
level of income.
Assignment Questions:
1. Determine the fixed cost of Nipponply for a period of one year.
2. Find the break-even point.
3. Can Nipponply achieve the break-even point with a 65% level of
capacity utilization? Why or why not? Use evidence to support your
conclusions.
4. How many units need to be sold to earn a target income of ₹ 3 million
per year (in Indian Rupees).
5. How does the volume affect the return on equity and return on
investment?
6. Nipponply is planning to use the capacity at a level of 85% and 100% in
years two and three, respectively. How does this decision affect the return
on investment and return on equity?
7. What advice can be given to Thakkar on his project idea? Be sure that
significant thought (broad but deep) is applied to your responses.
Recommended page length for this section is 2 pages.
The written case study response is to be presented in a Word
document, double-spaced, using Times New Roman, 12-font. A
title page must be included (student name, course number and
name, project title, and professor name). All computations and
solutions must be provided. Credit will not be earned if only
solutions are presented. Do NOT work together on this project.
This is an individual assessment of your CVP competencies.
