Unit 5 Managerial Accounting Decisions You have been approached by a potential customer who could bring considerable business. She says, “I’d like to find an alternative vendor for my future orders of

[ad_1]

Unit 5 Managerial Accounting Decisions

Don't use plagiarized sources. Get Your Custom Essay on
Unit 5 Managerial Accounting Decisions You have been approached by a potential customer who could bring considerable business. She says, “I’d like to find an alternative vendor for my future orders of
Just from $13/Page
Order Essay

You have been approached by a potential customer who could bring considerable business. She says, “I’d like to find an alternative vendor for my future orders of 5,000/yr., but their pricing to me must be competitive.”

Your CFO has supplied you with the following information. Current product standard costs are as follows:

The board of directors requests a quick but thorough presentation to determine whether taking on this potential customer is a good idea. Assume that your factory is fully operational and that you will not have any learning curve impacts. Answer the board’s following questions based on data from the CFO:

  1. What is meant by budget variance?
  2. What is an effective way to incorporate variance analysis into the budget process?
  3. What are the differences between labor and material variances?
  4. How is a quantity variance different from a rate variance?
  5. What are the subcomponents of fixed overhead?
  6. What are the subcomponents of variable overhead?
  7. What is the lowest possible price you could offer to this potential customer (You know that we have sufficient capacity, without working overtime and without adding any new equipment, to make this order)? Please show the calculations.
  8. In terms of capacity, under what conditions would offering this lowest possible price be a bad decision? Why?
  9. You have been considering investing in automation to eliminate some factory labor if you get this large order. This technology advancement will cost an added $100,000/yr. to lease (net of taxes), but it will reduce labor cost/unit on the customer’s units by 50%. How would this change the lowest possible price you could offer to this potential customer and at least still break even? Please show the calculations.

THIS ASSIGNMENT MUST BE PRESENTED IN 8-10 CONTENT SLIDES WITH SPEAKER NOTES SHOWING ALL CALCULATIONS

Show more



[ad_2]

Source link

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 15% with the discount code BANANA