2009年3月18日星期三

Group Assignment 3

1. According to the information given,
Fixed cost : $140000
Variable unit cost: $14,550 ( $0.97 x 150,000)
Expected unit sales: 15,000 unit
Unit Price :$ 1.99 (best estimate)



Observably, under the break –even analysis system, it shows that company only need to sell about 137254 units at the price of $1.99 to make break even or make back total cost. As they forecast expected unit sales of 150,000 burgers in 18 months. Then they can earn the profit about $13,000 and wouldn't be facing bankruptcy.

It is a very good tool / system for company to consider the relationship of fixed cost variable cost and profit. The graph shows the data clearly and comparison in order to help the middle and senior management level to make some of the decision as below:


(1) What is the break-even unit (Middle Management)
(2) How do we set the product's unit price. (Senior Management)








Base on the OpenBravo ERP demo, here is the module can be used to handle each step within the Order-to -Cash business process below:
Accept/ Enter Order- Sales Management

Order Acknowledgement- Sales Management



Purchase Materials -Procurement Mangement
Receive Materials-Procurement Mangement


Production-Production Management

Packing-Sales Management

Shipping-Sales Management


Invoicing and Collection -Sales Managemnet


Account and Finance, Sales & Marketing need to coordinate from start to finish of the Order-to- Cash business process.

ERP software integrated different processes, it able to easily share a program or data, customer can check the status accurately and directly, it is more satisfied customers and saving time.

Also, it has analysis tools help the manager to assess needs and resources, designed the strategic planning.

1 則留言:

  1. Good answers ! I appreciate the screen shots you have included.

    Accounting, Finance, Sales, Marketing, Procurement and Production all need to coordinate in order to carry out all the steps within the Order-to-Cash business process. Since all these departments are using a single integrated software package (ERP), the coordination and information sharing can be done seamlessly (e.g. without manual steps or delays).

    And you are absolutely correct in saying that management can also monitor real-time performance of the entire company using ERP !

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