Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Hi, could you please help answer 8e, 8f, 8j, and 8i. Thank you! 8 Prepare a memo to the owner. Choose five of the ten
Hi, could you please help answer 8e, 8f, 8j, and 8i. Thank you!
8 Prepare a memo to the owner. Choose five of the ten directed analysis questions below and write two or three substantive sentences to address each of those five questions. Conclude with a recommendation as to how many log cabins the owner should build in the coming year using the data from your analysis in the memo to support your recommendation. Use excel to insert a text box to write the memo in at the bottom of your solution worksheet/tab. 8a. Which cost estimation method did you use in requirement #5? Why? Would one method be preferable over others? 8b. What effect would outliers have on the utility cost estimation? If there are outliers in this data set, are you over-or under-estimating the utility cost? 8c. Is it appropriate to estimate utility costs for all three models using this data set? Why or why not (besides potential outliers)? 8d. Why might the utility cost estimate be different between the high-low method (as in requirement #3) and the least squares regression method (as in requirement #4)? 8e. What if production of cabins changes to 25 each of the basic, deluxe, and standard models? What will happen to overall net operating income for the company? 8f. If the company could manufacture all three product lines in one facility (instead of separate buildings, as is currently done), how would the cost estimation change? 8g. Is the company on track to reach their target profit? Explain. 8h. How might the company's product mix affect their ability to reach their target profit? 8i. Is net operating income the same for financial statements prepared under the absorption and variable costing approaches? Why or why not? 8j. What advantages does the variable costing income statement offer over the absorption costing income statement in facilitating break-even analysis? Specifically use the numbers in your solution. 8 Prepare a memo to the owner. Choose five of the ten directed analysis questions below and write two or three substantive sentences to address each of those five questions. Conclude with a recommendation as to how many log cabins the owner should build in the coming year using the data from your analysis in the memo to support your recommendation. Use excel to insert a text box to write the memo in at the bottom of your solution worksheet/tab. 8a. Which cost estimation method did you use in requirement #5? Why? Would one method be preferable over others? 8b. What effect would outliers have on the utility cost estimation? If there are outliers in this data set, are you over-or under-estimating the utility cost? 8c. Is it appropriate to estimate utility costs for all three models using this data set? Why or why not (besides potential outliers)? 8d. Why might the utility cost estimate be different between the high-low method (as in requirement #3) and the least squares regression method (as in requirement #4)? 8e. What if production of cabins changes to 25 each of the basic, deluxe, and standard models? What will happen to overall net operating income for the company? 8f. If the company could manufacture all three product lines in one facility (instead of separate buildings, as is currently done), how would the cost estimation change? 8g. Is the company on track to reach their target profit? Explain. 8h. How might the company's product mix affect their ability to reach their target profit? 8i. Is net operating income the same for financial statements prepared under the absorption and variable costing approaches? Why or why not? 8j. What advantages does the variable costing income statement offer over the absorption costing income statement in facilitating break-even analysis? Specifically use the numbers in your solutionStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started