Module 2 – SLPCost AnalysisAssignment OverviewCost Analysis Understanding the interaction between costs, breakeven points, economic changes, and the broader economy is important for business planning. Original Papers

Module 2 – SLPCost AnalysisAssignment OverviewCost Analysis

Understanding the interaction between costs, breakeven points, economic changes, and the broader economy is important for business planning. It helps organizations adjust pricing, manage expenses, and forecast profits. 

***SLP 2 Must be Completed Before Case 2***

Module 2 SLP Resources

Variable Cost vs. Fixed Cost: What’s the Difference? (2024)Fixed Cost: What It Is and How It’s Used in Business (2024)Variable Costs: How They Affect Your Business (2024)Contribution Margin: Definition, Overview, and How to Calculate (2024)What Contribution Margin Means to Your Business (2024)Breakeven Point: Definition, Examples, and How to Calculate (2024)Why Break-Even Analysis is Important for Your Small Business (2024)

SLP AssignmentSelect the Business

You will create scenarios/simulations for SLP 2 using the free version of ChatGPT which you worked with in Module 1. How to cite ChatGPT

Decide the type of for-profit business you wish to analyze for SLP 2. The choices are:

• A food truck
• A coffee, tea, smoothie, or ice cream shop
• A small t-shirt manufacturer

Do not put in the name of a real business, brand, or company. You may give your business a name when you analyze it.

Defining the Concepts

Using the resources provided:

• Explain the difference between fixed and variable costs.
• Explain contribution margin.
• Explain break-even.

The three explanations must be a total of one page in length and include in-text citations. 

Get Your Financials

You will run separate queries, one at a time. Remain in the same chat so that the financials will reflect the chosen business. Be sure to replace “INSERT BUSINESS TYPE” in your queries with the business type you selected.

For SLP 1

• Query 1: Create detailed break-even data for INSERT BUSINESS TYPE so that Contribution Margin (CM) Per Unit, Break-Even Point (in Units), and Dollars may later be calculated: Do not provide analysis or answers
• Query 2: Calculate
• Query 3: Recalculate assuming rent/utilities went up by 20%

Query 4: Recalculate assuming wages went up by 10%

Query 5: Recalculate assuming the cost of your most expensive variable cost component went up by 25%

Screenshot the 5 queries and paste them into a second Word document that must be uploaded with your assignment. A screenshot is different than copying and pasting. Your assignment will not be graded without the screenshots.

How to take screenshots on Windows 11

Take a screenshot on your Mac

Query 1 Analysis – The Data

Copy and paste the Figures from ChatGPT or create visuals from the data

• Analyze the Break-Even Data. Based on what you learned about break-even data, point out the financial data in the various categories that a small business needs to carefully monitor. (1/2 page) Research required.

Query 2 – the Calculations

Copy and paste the Figures from ChatGPT or create visuals from the data.

• Contribution Margin (CM) Per Unit
• Break-Even Point (in Units)
• Break-Even Point (in Dollars)

Describe the findings in one sentence. 

Query 3 – Fixed Cost Increase

Copy and paste the Figures from ChatGPT or create visuals from the data.

• Explain what the change means to the business.

Using resources published in the last 12 months, research the implications of rent, lease, or utilities increases on small businesses. Discuss economic trends in this area. (1 page) 

Query 4 – Wage Increase

Copy and paste the Figures from ChatGPT or create visuals from the data.

• Explain what the change means to the business.

Using resources published in the last 12 months, research the implications of wage increases on small businesses. Include a discussion of the labor market for the type of business. (1 page) 

Query 5 – Variable Cost Increase

Copy and paste the Figures from ChatGPT or create visuals from the data.

• Explain what the change means to the business.

Using resources in the last 12 months, research the implications of cost increases on small businesses. Include a discussion of the effects of a less expensive alternative. (1 page) 

NOTE: You are not permitted to ask ChatGPT to write the content. If the assignment is written by AI, a zero will be awarded and no resubmission will be accepted. 

Since you are engaging in research, be sure to cite each paragraph and add a reference list in APA format. NOTE: failure to use research with accompanying in-text citations to support content will result in a score of 60% for each grading criterion. This is a research-based, professional paper, not a personal one based on feelings. It must be written in the third person. This means words like “I,” “we,” and “you” are not appropriate. No quotations are permitted in this paper. The excessive use of quotes will directly impact performance since this indicates a lack of comprehension and shows that you may not have mastered the concepts.

Need help with the reference list format or citation format?

• Free Citation Generator (APA)
• “Full citation” is for the Reference list. In-text citation is used in the written paragraph.

SLP Assignment Expectations

Use the ACC501 SLP 2 APA-formatted template to create your submission.

• The template is set up in APA 7: double-spacing, font, margins, headings, page breaks, APA help links.

Your submission will include:

• Trident University International’s cover page
• Page counts do not include content, data, tables, or graphs from ChatGPT.
• The reference list page in APA format
• A Word file containing screenshots from ChatGPT. The assignment will not be graded unless this is submitted.