Online College Courses for Credit

+
ACC 561 Week 5 Individual Assignment Cost-Volume-Profit Analysis

ACC 561 Week 5 Individual Assignment Cost-Volume-Profit Analysis

Rating:
Rating
(0)
Author: l marshall
Description:

Click link for download:http://assignment.store/acc-561-week-5-individual-assignment-cost-volume-profit-analysis/

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. 
Assignment Steps 
Resources: 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.
Complete the 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.
Prepare a 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.
Show your work in Microsoft® Word or Excel®. 
Complete calculations/computations using Microsoft® Word or Excel®.   
Format your assignment consistent with APA guidelines.


(more)
See More
Fast, Free College Credit

Developing Effective Teams

Let's Ride
*No strings attached. This college course is 100% free and is worth 1 semester credit.

37 Sophia partners guarantee credit transfer.

299 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 33 of Sophia’s online courses. Many different colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial