Bayern_Brauerei

Bayern Brauerei Breakeven/Cash Flow Analysis: Through the use of excel graphs, we learned that changing the fixed cost, variable cost, and price variables had varied effects on the profit margin. A change in fixed costs, such as the purchase of a plant or equipment, would have an effect on the price, but would likely use long term financing to finance, so there would be less of an abrupt effect. The fixed costs affect revenue less as the quantity produced increases. The calculation showing that a 1% increase (show 1% decrease as well) in sales would bring about a 5.41% increase in EBIT does not take into consideration the proposed expansion. The proposed expansion would lead to a higher total costs, and therefore a reduced profit margin. Variable costs, on the other hand, have an effect on each hectoliter produced and are independent of whether or not sales increase. An example of this would be an increase in the cost of manufacturing glass that amounts to an additional two cents per 20 glass bottles. This increased expense would cause each additional unit to increase by an additional two cents and would be equivalent to an aggregate increase of sales, increase, new, increased, max, term, inventory, interest, debt, company, expense, net, should, profit, germany, expansion, eastern, costs, short, receivables, position, policy, leiter, however, finance, due, cash, been, warehousing, ratios, profits, past, much, max’s, market