Manuel Inc. produces textiles in many different forms. After recording lower than anticipated profits last year, Manuel

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Manuel Inc. produces textiles in many different forms. After recording lower than anticipated profits last year, Manuel has decided to shut down one of its divisions that is not performing well. The accounting manager has compiled the following data on the two divisions being considered for closing and asked you to evaluate the short-term and long-term effects on profits of closing each division.

Which division should be closed andwhy?

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For the Winter Outerwear division the shortterm effect would be a loss of 50...View the full answer

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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities

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Related Book For book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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Question Posted: Apr 18, 2013 06:07 AM

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Manuel Inc. produces textiles in many different forms. After recording lower than anticipated profits last year, Manuel

Question:

Winter Outerwear $1,000,000 500,000 500,000 High End Suits $5,000,000 2,000,000 Net revenues Variable costs Contribution margin Controllable fixed costs Controllable margin 500,000 750,000 $ (250,000) 2,000,000 1,000,000 1,500,000 s (500,000) Noncontrollable fixed costs Contribution by SBU

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For the Winter Outerwear division the shortterm effect would be a loss of 50...View the full answer

Cost management a strategic approach

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