Cost Analysis Case Assignment

STEP 1
Read the Caribbean Internet Cafe case attached. Using the case data, compute the break-even analysis and sensitivity analysis using the case data.
Break-even analysis: compute using the fixed and variable cost information provided in the student data.
Sensitivity analysis: using the marketing research information provided compute the margin and break-even for the THREE possible scenarios.
Provide analytical computations in excel.
STEP 2
THEN, acting as an outside consultant, use the analysis from step 1, write a 2 page action memo (+ attachments) to David assessing the viability of this new venture. Provide your recommended alternatives, and a GO or NO-GO decision. Identify alternatives, risks and other managerial issues regarding this start up and consider competition, market,personal control, financial risk.

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