Managerial Accounting Concept Application Project Purpose: Plan to manufacture and sell a product and make Net Income of 1.000.000 by the end of the second year. One product must have at least two components (could be to two sub-assemblies) the other does NOT have to be manufactured. Each team is to apply the concepts covered in this course. During the project you are to apply managerial accounting decision-making concepts and tools covered in the course. This will prepare you for the next exam and final. Key objectives: 1) Present the companvs projected Financial Statements for each year (three years). Target Net Income of at least $1,000,000 by the third year Break-even by the second year in operation. * Quarterly Budgets for ISt year, Annual Budgets thereafter. 2) Must include "Cost-Volume-Profit" tools. BE analysis, Target Net Income, Multiple products (2 minimum). 3) * Apply cost concepts covered in the Incremental Analysis (Make or Buy, Special Order and Process further. 4) * Capital Budgeting (IRR and Payback) for the major equipment purchases. Time value of money must be considered. 5) * Present a master budget, flexible budget and the standard costing for such product and/or service.