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a) Enter your group number and names in the space provided above. Write your case analysis directly in this file by entering your response to

a) Enter your group number and names in the space provided above.

Write your case analysis directly in this file by entering your response to items (d) through (h) directly under each respective item. Do not change any of the settings in this document (i.e., font, margins, footer, etc.).

You will also need to complete the Excel template that accompanies this case. Do not change the structure of the main spreadsheet at all (i.e., dont enter/delete/resize rows or columns, change page layout, change footers, etc.).

Save your files (both Word and Excel), using the following naming convention: Group#_Blackheath

b) Read the Blackheath case in its entirety.

c) Open the Cost of Great Heaths Template(Excel file) and follow the instructions in the Excel file to complete the template. The file is posted in the Assignments folder.

d) Explain in your own words why the cost of goods sold (top page 6) per unit falls as the level of activity increases.

e) What do you think of the decision rules recommended by Lee High? Be specific when making your points.

f) What do you think of Mr. Blackheaths decision that the sales representatives sell at $8.00 with a 15% commission?

g) Evaluate the decision made by Adelaide Ladywell. Do you agree or disagree, and why?

h) Summarize three main points that emerged from your analysis.

i) Based on your analysis of the case, develop an appropriate set of decision rules for pricing the Great Heath.

I need help with H&I please I posted this a week ago and my question was refunded for some reason. and number 5 on the excel sheet.

image text in transcribedimage text in transcribed

Indirect Direct Indirect Material Factory Insuranc Units of Output Direct Materials Labor $ Other Overhead $ Electricity $ 115 $ Week Labor Cost of Great Heaths 300 $500 $ 180 $ 1 400 300 125 310 2 500 375 625 200 300 125 125 360 Unit Total Cost of Variable Fixed 3 600 450 750 220 300 135 125 410 500 Units Manufacturing Cost Per Unit Cost Cost Total Enter F, V, or M Direct materials Direct labor Indirect labor Instructions: The purpose of this exercise is to help you to understand how Lee High computed total cost per unit of $6.60 and, by working through the computations, leaming how costs behave relative to production volume. Electricity Indirect material Factory Insurance Other overhead 1) Determine whether each of the manufacturing costs listed above are fixed, variable, or mixed and enter F, V, or M into the appropriate (highlighted) boxes above Hint: if the total cost of an item is the same for all levels of output, the cost is fixed; if the unit cost of an item is the same for all levels of output, the cost is variable. otherwise, the cost is mixed Total Administrative and Selling At $7.00 price Total shown by Lee High Added amount for rounding, etc Lee High's stated total cost per unit 2) Once you determine the behavior of each manufacturing cost item, complete the"Cost of Great Heaths" table to the right (highlighted cells), following the instructions below: For items categorized as V: Input the computation in for each unit variable cost into column L. For items categorized as 'F': enter total fixed cost in column M For items categorized as 'M": Follow instructions in #3, below. NOTE: Some of the highlighted cells in columns L and M will remain blank. No need to enter zero. 3) Mixed costs will have to be separated into their fixed and variable components using the High-Low Method. Compute each component, showing all work in the High-Low Worksheet tab Once you have computed each component, use Excel cell references to feed the information to the appropriate cells in the schedule to the right 4) Once columns L and M have been completed, use the information in these two columns to compute total manufacturing cost (column O), assuming 500 units are produced. DO NOT feed the totals from the original given data. I need to know that you know how to compute total costs even when the total costs are not given in the problem. Finally, compute the unit costs in column P and the Administrative and Selling data at the bottom of the table Hint: Lee High's stated total cost per unit is $6.60. The "Added amount for rounding, etc." is a plug number and should be $0.12 Complete the Administrative and Selling section of the table using the information in the case along with your computations, which are similar to those computed for manufacturing costs. By the time you complete the steps above, you should have been able to compute "Lee High's stated total cost per unit of $6.60 Indirect Direct Indirect Material Factory Insuranc Units of Output Direct Materials Labor $ Other Overhead $ Electricity $ 115 $ Week Labor Cost of Great Heaths 300 $500 $ 180 $ 1 400 300 125 310 2 500 375 625 200 300 125 125 360 Unit Total Cost of Variable Fixed 3 600 450 750 220 300 135 125 410 500 Units Manufacturing Cost Per Unit Cost Cost Total Enter F, V, or M Direct materials Direct labor Indirect labor Instructions: The purpose of this exercise is to help you to understand how Lee High computed total cost per unit of $6.60 and, by working through the computations, leaming how costs behave relative to production volume. Electricity Indirect material Factory Insurance Other overhead 1) Determine whether each of the manufacturing costs listed above are fixed, variable, or mixed and enter F, V, or M into the appropriate (highlighted) boxes above Hint: if the total cost of an item is the same for all levels of output, the cost is fixed; if the unit cost of an item is the same for all levels of output, the cost is variable. otherwise, the cost is mixed Total Administrative and Selling At $7.00 price Total shown by Lee High Added amount for rounding, etc Lee High's stated total cost per unit 2) Once you determine the behavior of each manufacturing cost item, complete the"Cost of Great Heaths" table to the right (highlighted cells), following the instructions below: For items categorized as V: Input the computation in for each unit variable cost into column L. For items categorized as 'F': enter total fixed cost in column M For items categorized as 'M": Follow instructions in #3, below. NOTE: Some of the highlighted cells in columns L and M will remain blank. No need to enter zero. 3) Mixed costs will have to be separated into their fixed and variable components using the High-Low Method. Compute each component, showing all work in the High-Low Worksheet tab Once you have computed each component, use Excel cell references to feed the information to the appropriate cells in the schedule to the right 4) Once columns L and M have been completed, use the information in these two columns to compute total manufacturing cost (column O), assuming 500 units are produced. DO NOT feed the totals from the original given data. I need to know that you know how to compute total costs even when the total costs are not given in the problem. Finally, compute the unit costs in column P and the Administrative and Selling data at the bottom of the table Hint: Lee High's stated total cost per unit is $6.60. The "Added amount for rounding, etc." is a plug number and should be $0.12 Complete the Administrative and Selling section of the table using the information in the case along with your computations, which are similar to those computed for manufacturing costs. By the time you complete the steps above, you should have been able to compute "Lee High's stated total cost per unit of $6.60

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