CVP Analysis Questions

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Question 1: PREPARING BREAK-EVEN CHART AND CONTRIBUTION ANALYSIS
a) How do managers use CVP analysis to make decision? Describe at least 5 uses of CVP analysis.
1) CVP analysis employs the same basic assumptions as in breakeven analysis. It is the technique that manager use to planning the sales price of a product and the price of product will cover the cost of product and the profit earn.
2) BEP and MOS are useful if the company experience increasing cost or need to reduce the selling price in order to remain competitive. By using BEP and MOS the company can identify the lowest price of the product that will sell. So that the company will not gain loss for each of product sold.
3) To enter new market. Any business will start with small
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Discuss at least FIVE (5) benefits of JIT system.

The benefit of using JIT system are:-
1) Lower Warehouse Costs
Is it because storing excess inventory will cost a lot of money and if the number of goods that storing in inventory can be reduced, the cost of inventory also will reduces. The company that using JIT system may able to reduce the number of warehouse they needed and eliminate the warehouse that not necessary.

2) Better management decision
The JIT system also help company managing their stock more efficiently and they handle their supply chains and use their parts to assemble products for their customers. So that, by reducing cost in warehouse managing, the company will experienced lower cost production for their product and can provide low price to their customer. That will advantages the company to compete with their competitor.

3) Less
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The goods only receive when they are needed in the production process and it will reducing the inventory cost. This method requires that producers are able to accurately forecast demand.
The main goal of JIT system is to provide the customer products that they want, when and where they want them at the minimum cost. So that, to make sure the JIT system that implement are successful the element of JIT should play a role.
1) Dependable supplier
The supplier must be willing to deliver on short notice exact quantities of raw materials according to the quality of specifications. Supplier also should be willing to deliver the raw material to the work stations and not at a central receiving department.
2) A multi-skilled work force
Under JIT system, the machines are need to grouped in one place in work station. Most of work is automated. So that, one worked are able to operating and maintaining several type of machines.
3) Total quality control
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