Provide a detailed analysis of the ‘Fly Ash Brick Project’ case which you can access by clicking on the following link:
Fly Ash Brick Project: Feasibility Study Using CVP Analysis
Please address the following questions in your analysis:
Analyse various expenses into fixed cost, variable cost and initial investment.
Find the breakeven point and plot a CVP graph.
How many bricks need to be sold so as to earn a targeted income of Rs2 million per year?
How do volumes affect return on equity?
What advice can be given to the owners?