The purpose of a firm is to achieve long-term profitability by providing a market offering which adds value to customers. To do this a firm must assess its financial condition. Some financial measures for assessment include breakeven analysis (BE), contribution analysis, target profit, payback period and net present value (NPV).
1. Provide a two-year monthly forecast in units and dollars for your product or service? You may use an excel spreadsheet or word document to display your forecast. Show each month in units and dollars. 2. What three marketing metrics will help me determine the financial condition of your product or service. No one wants to invest in a new product or service that will breakeven in 25 years! A breakeven analysis is critical. Select any three metrics (breakeven, contribution analysis, target profit, payback period and or net present value). 3. For each marketing metric provide and explanation why it was selected, the formula and calculation.