Business Finance : ACC/561 Cost Volume Profit

Purpose of Assignment

The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making.

Resources
  • Cost-Volume-Profit Analysis Grading Guide
  • Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)
  • Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products.

Scenario:Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

Assignment Steps

Completethe following:

  • Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used.
  • Compute the margin of safety ratio for current operations and after Mary's changes are introduced (Round to nearest full percent).
  • Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary's changes are introduced.

Preparea maximum 700-word informal memo to management addressing Mary's suggested changes.

  • Explain whether Mary's changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.

Showyour work in Microsoft Word or Excel.

Completecalculations/computations using Microsoft Word or Exc

Answers

Related Questions

Humanities : Plea Bargaining in Criminal Justice...

response t0 -peer as well, in cite qoutes and reference pagePlea bargaining is used in criminal justice to provide the accused with the opportunity to...

Humanities : Gerontology Cogitative Memorandum Ve...

This is a memo written in memo form below is the questions and the format information to help. APA format and grammar highly enforced. Criteria for ev...

Humanities : Reason and Utility in the Modern Soc...

in cite quotes and references should be included do not forget to respond to the peer.How can reason and utility apply to modern society? Does equalit...

Programming : NYIT Enterprise Risk Management Pro...

Research Paper Topic Enterprise Risk Management Introduction All research reports begin with an introduction. (2 Pages) Background Provide your read...

Business Finance : Consequences of Reminiscence G...

Hi there,each question must be answered fully in APA form on a masters level, please use as much empirical data as well as the text I will post below...

Business Finance : Final Individual 2-page Execut...

Semester-long case development project: (= 10%) This is an INDIVIDUAL assignment where you will complete three interim (NON-GRADED UNTIL THE END) stra...

Business Finance : Kinesics: the study of body mo...

Description Emblems: gestures that have direct verbal translation and can stand alone such as the “ok” sign. Illustrators: gestures that compleme...

Writing : University of Missouri Therapeutic Clon...

This paper should address one the following question- Should ethics be founded on religion? Why? Why not? The essay should have a minimum of 1200 word...

Business Finance : Intellectual Property and Trad...

You are an entrepreneur and just started a new business in the restaurant industry. The business must be hypothetical (made-up) for this assignment.Pl...

Science : Florida International University Nursin...

Reference:1.Text and Materials: Masters, K. (2017). Role Development in ProfessionalNursing Practice (4th ed.) ISBN: 978-1-284-07832-9Publication Manu...

Writing : RSCH8110/7110/6110 Walden Annotation of...

Submit: Annotation of a Qualitative Research ArticleThis week, you will submit the annotation of a qualitative research article on a topic of your int...

Science : MN580 Purdue Global University Mold Exp...

Need below DQ question answered 300 words APA format with 3 scholarly references less than 5 years old with citation ( no cover page needed) Topic 1:...

Humanities : PSY302 Capella University Scales and...

The Scales We Use and the Comparisons We MakeIn this unit, you are introduced to four scales of measurement, which are easily remembered with the acro...

Business Finance : LAW1101 Sinclair Community Col...

Follow the instructions below to answer the questions provided.You will then submit this file to the dropbox included in the topic.MAKE SURE TO READ E...

Science : BUS4126 Capella University Smith Commun...

In this assignment, you will identify the characteristics of Smith Community Hospital and the departments that will be affected with the updated IT In...

Writing : University of Western Australia Interpr...

I need you to respond to 3 fictional stories I uploaded below.(in separate documents)I need you to critique these papers based on the 6 bullet points...

Business Finance : American Military University I...

The paper should show that the higher the number of intermodal transports being used to transport hazmat, correlates with a higher number of hazardous...

Science : University of Maine at Machias Well Chi...

Well Child Developmental Assessment Paper Guidelines Students will conduct a developmental assessment met in a home setting to identify factors infl...

Business Finance : IS201 Post test...

Need help doing test on McGrawHill SimNet. Most of the answer can be found on the internet, I just do not have to to do it. There are five attempts fo...

Humanities : After reading the poem, address the...

Take up the White Man's burdenSend forth the best ye breedGo bind your sons to exileTo serve your captives' need;To wait in heavy harness,On f...

Mathematics : RSCH8210 Walden University Quantita...

Post a very brief description (1–3 sentences) of the article you found and address the following: Describe how you think the research in the article...

Mathematics : SOLVE TRIGINOMETRIC QUESTION...

Suppose on a nice December evening you gaze upon your favorite star. You stick your handout into the sky and point at it, then you keep your arm fixed...

Business Finance : mgt4478 essay question...

See attached document for assignment criteria and expectionsCite all your sources using APA style. See External Links for guidance in using APA style...

Humanities : Nonprofit Accounting Transactions An...

Based on the attached table: Create a statement of financial position as of December 31, 2009 with the three net asset classes displayed using a Micro...

If you didn't find the right answer

Ask Your Questions, We'll notify you once someone answers it