Consider BubbleX Manufacturing Company, which makes glass bottles for bottling wine. BubbleX's management has observed that in the last five years, on average, for every set of total wine bottles budgeted for production in the Sparkling department, 20% of the bottles are lost to spoilage (breakage) and constitute the driver for the company's internal failure costs. In the first quarter of 20XX, BubbleX incurred costs outlined in the data below to put sparkling wine bottles into production. The units to account for consist of the beginning work in process as well as the good units completed and transferred out. Over the years, BubbleX has observed that 20 percent of units to account for are normal spoiled units. Going through the inspections, BubbleX's production manager. Maria Cortez discovers that 2 percent of the units to account for constitute abnormal spoiled units. At the executive meeting last week, the chief executive officer asked the department heads to find a way to respond to shareholder's concems that the company needs to shift its strategy to include environmental, sustainability and government (ESG) management. Also, shareholders have indicated that they need to know what the company is doing to mitigate its climate-related risks. Consumer trends also have shown a shift towards industry competitors with clear ESG management strategies. The CEO stresses that the department will need to address shareholder concerns while balancing that with maintaining the company's operating income performance. Maria reasons that to fulfil the CEO's request, she must first start by identifying the costs of the defective products and analyzing their effect on the operating income for the quarter. Maria decides to bring in a consultant to help the company achieve its goals. The company sells sparkling bottles at $9.50 and reports that monthly fixed costs will be $200,000 for the quarter. Below is the production date for the accounting period. You have been brought in as a cost accounting consultant to help Maria achieve the CEO's demand. To do so, you are to follow the requirements below: 1. First, consider BubbleX's glass bottle manufacturing plant being developed for bottling wine. And imagine the manufacturing process covering the product's life cycle. Then write a reflection on the risks or opportunity of investing in production resources. 2. Write a generalized reflection on manufacturing company's management of risk and opportunities related to their environmental, societal and govemmental (ESG) landscape. 3. Using a weighted average approach to process costing, track the flow of the manufacturing costs and identify the equivalent units of bottles to be produced by calculating costs of finished bottles and costs that are lost bottles to spoilage (or breakage) for the months of January, February and March 20XX. 4. Write a reflection on the implications of the energy resources in total units produced and units lost to spoilage using environmental impact disclosure standard GRI 302-1 or other ESG frameworks. 5. Next, using a cost volume profit approach, calculate the operating income for each month should the company keep its current strategy. 6. Re-imagine the company with a new strategy aimed at reducing breakage. Write reflections on potential strategies the company can employ. 7. Bearing in mind that greater resource investment is aimed at increasing product quality to reduce breakage, account for January, February, and March with a 5 percent increase in direct materials and conversion costs for each month of original data*i. 8. Prepare a cost volume profit analysis for Year 1, Year 2 and Year 3. Keep fixed cost from January through March the same as original data and keep constant. 9. Visualize the data and perform an analysis. 10. Compare the performance of January, February and March a. Write a reflection on the cost volume profit implications. b. Write a reflection on the impact on energy resources using environmental impact disclosure standard GRI 3021 or other ESG frameworks. 11. Consider whether BubbleX should implement the strategies analyzed in this case or not. Write your recommendations and the implications of your decision. Consider BubbleX Manufacturing Company, which makes glass bottles for bottling wine. BubbleX's management has observed that in the last five years, on average, for every set of total wine bottles budgeted for production in the Sparkling department, 20% of the bottles are lost to spoilage (breakage) and constitute the driver for the company's internal failure costs. In the first quarter of 20XX, BubbleX incurred costs outlined in the data below to put sparkling wine bottles into production. The units to account for consist of the beginning work in process as well as the good units completed and transferred out. Over the years, BubbleX has observed that 20 percent of units to account for are normal spoiled units. Going through the inspections, BubbleX's production manager. Maria Cortez discovers that 2 percent of the units to account for constitute abnormal spoiled units. At the executive meeting last week, the chief executive officer asked the department heads to find a way to respond to shareholder's concems that the company needs to shift its strategy to include environmental, sustainability and government (ESG) management. Also, shareholders have indicated that they need to know what the company is doing to mitigate its climate-related risks. Consumer trends also have shown a shift towards industry competitors with clear ESG management strategies. The CEO stresses that the department will need to address shareholder concerns while balancing that with maintaining the company's operating income performance. Maria reasons that to fulfil the CEO's request, she must first start by identifying the costs of the defective products and analyzing their effect on the operating income for the quarter. Maria decides to bring in a consultant to help the company achieve its goals. The company sells sparkling bottles at $9.50 and reports that monthly fixed costs will be $200,000 for the quarter. Below is the production date for the accounting period. You have been brought in as a cost accounting consultant to help Maria achieve the CEO's demand. To do so, you are to follow the requirements below: 1. First, consider BubbleX's glass bottle manufacturing plant being developed for bottling wine. And imagine the manufacturing process covering the product's life cycle. Then write a reflection on the risks or opportunity of investing in production resources. 2. Write a generalized reflection on manufacturing company's management of risk and opportunities related to their environmental, societal and govemmental (ESG) landscape. 3. Using a weighted average approach to process costing, track the flow of the manufacturing costs and identify the equivalent units of bottles to be produced by calculating costs of finished bottles and costs that are lost bottles to spoilage (or breakage) for the months of January, February and March 20XX. 4. Write a reflection on the implications of the energy resources in total units produced and units lost to spoilage using environmental impact disclosure standard GRI 302-1 or other ESG frameworks. 5. Next, using a cost volume profit approach, calculate the operating income for each month should the company keep its current strategy. 6. Re-imagine the company with a new strategy aimed at reducing breakage. Write reflections on potential strategies the company can employ. 7. Bearing in mind that greater resource investment is aimed at increasing product quality to reduce breakage, account for January, February, and March with a 5 percent increase in direct materials and conversion costs for each month of original data*i. 8. Prepare a cost volume profit analysis for Year 1, Year 2 and Year 3. Keep fixed cost from January through March the same as original data and keep constant. 9. Visualize the data and perform an analysis. 10. Compare the performance of January, February and March a. Write a reflection on the cost volume profit implications. b. Write a reflection on the impact on energy resources using environmental impact disclosure standard GRI 3021 or other ESG frameworks. 11. Consider whether BubbleX should implement the strategies analyzed in this case or not. Write your recommendations and the implications of your decision