Hi, Not sure if you read my reply or not, so here it is again. Hi, I need your help again. Last 2 assignments due by tomorrow. Are you available? I will upload the assignments and work together with you as I did previously. I will let you know which parts I need help with and which parts I will complete. Please let me know if you can help me and I will upload the docs only to you and not to the general ask a question box for all tutors. I have $36 only, until Friday. Please help me. Thanks!
MontgomeryK_M3_A2.doc Cost and Decision-Making Analysis Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation. Cheryl: \"Wes, I'm not sure how to go about answering the questions that came up at the meeting with the President yesterday.\" Wes: \"What's the problem?\". Cheryl: \"The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out.\" Wes: \"I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.\" Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below: Velcro Metal Nylon Normal annual sales volume 100,000 units 200,000 units 400,000 units Unit selling price $1.65 $1.50 $0.85 Variable cost per unit $1.25 $0.70 $0.25 Total fixed expenses are $400,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers. The company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories. Using the module readings, the Argosy University online library resources, and the Internet, research break-even point and costing systems. Analyze the case based on your research and what you have learned so far in the course. Respond to the following: Calculate the company's overall break-even point in total sales dollars. Explain your methodology (approximately 2 pages). Of the total fixed costs of $400,000: $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages): o o Calculate the break-even point in units for each product. Explain your methodology. Determine the overall profit of the company if the company sells exactly the break-even quantity of each product. Present your results. Evaluate costing systems for this company. Explain if this company should be using a job-order or process-costing system to accumulate costs (1 page). Be sure to include your calculations in Microsoft Excel format. Write a 5-6-page report in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc. By Wednesday, December 3, 2014, deliver your assignment to the M3: Assignment 2 Dropbox. Assignment 2 Grading Criteria Maximum Points Calculated the company's overall break-even point in total sales dollars and explained your methodology. 32 Calculated the break-even point in units for each product in the scenario and explained your methodology. 52 Explained what the overall profit of the company will be if the company sells exactly the break-even quantity of each 16 product and showed your results. Compared and explained if this company should be using a job-order or process-costing system to accumulate costs. 80 Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation 20 and attribution of sources; and displayed accurate spelling, grammar, and punctuation. Total: 200 M4A2MontgomeryK_M4_A2.ppt. Applying Decision-Making Skills As a manager, part of your role is to develop strategy, and share this strategy with various stakeholders within the organization. This assignment will allow you to take your findings as a manager and communicate these findings to those who are affected. Your company has been presented with a decision on replacing a piece of equipment for a new computerized version that promotes efficiency for the upcoming year. As manager you will need to decide whether or not the purchase of the new equipment is a worthwhile investment and to communicate your recommendations to Executive Management for a final decision. To be convincing, sufficient support for your recommendations must be provided in order to be considered valid and accepted. Existing Equipment Original Cost 60,000 Present Book Value 30,000 Annual Cash Operating Costs 145,000 Current Market Value 15,000 Market Value in Ten Years 0 Remaining useful Life 10 years Replacement Equipment Cost 600,000 Annual Cash Operating Costs 50,000 Market Value in Ten Years 0 Useful Life 10 years Other Information Cost of Capital 10% Payback requirement 6 years In this assignment, use the information above to develop a comprehensive analysis using NPV, Payback Method, and IRR to develop a recommendation on replacing the existing equipment with a new computerized version. Develop an executive summary of your findings in a Microsoft PowerPoint presentation format to present to Executive Management. Do the following in your presentation: Include a statement of the problem or topic, a concise analysis of the findings, and a recapitulation of any main conclusions or recommendations. Be sure to incorporate specific details to highlight or support the summary including calculations. Using your knowledge of capital budgeting techniques, explain how principles of capital budgeting, such as the payback method, IRR, and NPV, can be used to assess the potential projects and assist in the decision-making process. Develop a 10-12 slide presentation in PowerPoint format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M4_A2.ppt. By Wednesday, December 10, 2014, deliver your assignment to the M4: Assignment 2 Dropbox. Assignment 2 Grading Criteria Maximum Points Wrote a statement of the problem or topic, a concise analysis of the findings, and a recapitulation of any main conclusions 28 or recommendations. Explained the summary using specific details including calculations. 28 Explained how principles of capital budgeting, such as the payback method, IRR, and NPV, can be used to assess the potential projects and assist in the decision-making process displaying knowledge of capital budgeting techniques. 36 Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation 8 and attribution of sources; and displayed accurate spelling, grammar, and punctuation. Total: 100 There is more than one method managers may use to make well informed capital budgeting decisions. I will review three methods called NPV (net present value) payback method and simple rate of return method. The NPV represents the value generated by an investment. NPV is a forward-looking financial indicator to support the allocation of resources if maximization of value is the objective. The NPV algorithm requires assumptions on all incremental cash inflows (eg revenues, royalties) and cash outflows (eg R&D and marketing costs, costs of goods sold) associated with a project. (Bode-Greuel, K., & Greuel, J. M. 2005) Bode-Greuel, K., & Greuel, J. M. (2005). Determining the value of drug development candidates and technology platforms.Journal of Commercial Biotechnology, 11(2), 155-170. Retrieved from http://search.proquest.com/docview/232910835?accountid=34899 Garrison, Ray, Eric Noreen, Peter Brewer. Managerial Accounting, 14th Edition. McGraw-Hill Learning Solutions, 1/2012. VitalBook file. MontgomeryK_M3_A2.doc Cost and Decision-Making Analysis Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation. Cheryl: \"Wes, I'm not sure how to go about answering the questions that came up at the meeting with the President yesterday.\" Wes: \"What's the problem?\". Cheryl: \"The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out.\" Wes: \"I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.\" Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below: Velcro Metal Nylon Normal annual sales volume 100,000 units 200,000 units 400,000 units Unit selling price $1.65 $1.50 $0.85 Variable cost per unit $1.25 $0.70 $0.25 Total fixed expenses are $400,000 per year. All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers. The company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories. Using the module readings, the Argosy University online library resources, and the Internet, research break-even point and costing systems. Analyze the case based on your research and what you have learned so far in the course. Respond to the following: Calculate the company's overall break-even point in total sales dollars. Explain your methodology (approximately 2 pages). Of the total fixed costs of $400,000: $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages): o o Calculate the break-even point in units for each product. Explain your methodology. Determine the overall profit of the company if the company sells exactly the break-even quantity of each product. Present your results. Evaluate costing systems for this company. Explain if this company should be using a job-order or process-costing system to accumulate costs (1 page). Be sure to include your calculations in Microsoft Excel format. Write a 5-6-page report in Word format. Apply APA standards to citation of sources. Use the following file naming convention: LastnameFirstInitial_M3_A2.doc. By Wednesday, December 3, 2014, deliver your assignment to the M3: Assignment 2 Dropbox. Assignment 2 Grading Criteria Maximum Points Calculated the company's overall break-even point in total sales dollars and explained your methodology. 32 Calculated the break-even point in units for each product in the scenario and explained your methodology. 52 Explained what the overall profit of the company will be if the company sells exactly the break-even quantity of each 16 product and showed your results. Compared and explained if this company should be using a job-order or process-costing system to accumulate costs. 80 Wrote in a clear, concise, and organized manner; demonstrated ethical scholarship in accurate representation 20 and attribution of sources; and displayed accurate spelling, grammar, and punctuation. Total: 200
