Cost Volume Profit Analysis Paper - Case Study Example

This target market is suitable for the product. Further, considering the need to always operate on profit, the price of the product is such that it exceeds the cost of the materials used in the production. In which case one t-shirt will go at $25.95. The following is a table for projection of unit sales over the next five years. The venture is realistic given the higher margin of safety. The higher margin of safety indicates that I would be able break-even in each of the projected five years.

The 99% margin of safety indicates that the venture can tolerate a relatively higher amount of drop in sales within each