Cost and Decision making analysis
Assignment 2: Required Assignment 1—Cost and Decision-Making Analysis
Cheryl Montoya best up the buzz and alleged her boss, Wes Chan, Vice Admiral of Marketing at Piedmont Accouterments Corporation.
Cheryl: “Wes, I'm not abiding how to go about answering the questions that came up at the affair with the Admiral yesterday.”
Wes: “What's the problem?”.
Cheryl: “The admiral capital to apperceive the break-even point for anniversary of the company's products, but I am accepting agitation addition them out.”
Wes: “I'm abiding you can handle it, Cheryl. And, by the way, I charge your assay on my board tomorrow morning at 8:00 aciculate in time for the aftereffect affair at 9:00.”
Piedmont Accouterments Corporation makes three altered accouterment accouterments at its accomplishment ability in North Carolina. Data apropos these articles arise below:
VelcroMetalNylonNormal anniversary sales volume100,000 units200,000 units400,000 unitsUnit affairs price$1.65$1.50$0.85Variable amount per unit$1.25$0.70$0.25
Total anchored costs are $400,000 per year.
All three articles are awash in awful aggressive markets, so the aggregation is clumsy to accession its prices after accident unacceptably ample numbers of customers.
The aggregation has a actual able angular assembly system, so there is no alpha or catastrophe assignment in action or finished-goods inventories.
Using the bore readings, the Argosy University online library resources, and the Internet, analysis break-even point and costing systems. Analyze the case based on your analysis and what you accept abstruse so far in the course.
Respond to the following:
Calculate the company's all-embracing break-even point in absolute sales dollars. Explain your alignment (approximately 2 pages).
Of the absolute anchored costs of $400,000: $20,000 could be abhorred if the Velcro artefact were dropped, $80,000 if the Metal artefact were dropped, and $60,000 if the Nylon artefact were dropped. The actual anchored costs of $240,000 abide of accepted anchored costs such as authoritative salaries and hire on the branch architecture that could be abhorred alone by activity out of business absolutely (approximately 2 pages):
Calculate the break-even point in units for anniversary product. Explain your methodology.
Determine the all-embracing accumulation of the aggregation if the aggregation sells absolutely the break-even abundance of anniversary product. Present your results.
Evaluate costing systems for this company. Explain if this aggregation should be application a job-order or process-costing arrangement to accrue costs (1 page).
Be abiding to accommodate your calculations in Microsoft Excel format.
Write a 5–6-page address in Word format. Apply APA standards to commendation of sources. Use the afterward book allotment convention: LastnameFirstInitial_M3_A2.doc.
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