Managerial Accounting Problem

A step-by-step solutions is required for the project assignment of the BBA-341 Management Accounting Course with all calculations and numbers.

II. As a well known pullover brand, we sell pullovers 50.000 units a year for $130 and $96 total cost per unit in general. A research on sales quantity showed that a 40% increase in production quantity will cause a $6 decrease in the unit cost. a) Compute the breakeven points in quantity and amount. b) Compute the quantity to sell to get a profit of $3.300.000. III. The sale price of the unique product is $30, contribution margin ratio 70% and the expectation for the following period are to get $422.300 profit with a sale 28.700pcs which is the 70% of the capacity of the factory. Realized new market researches for profit planning and obtained the following results: a) 10% decrease in the unit sale price will cause a 15% increase in the sales quantity, b) 10% increase in the unit sale price will cause a 15% decrease in the sales quantity, c) 5% decrease in the unit sale price will cause a 10% increase in the sales quantity. As a manager of the business make your decision, is there a need to make a change in the sale price, if "Yes" choose the most appropriate option. d) Calculate the quantity to sell to reach the BEP in quantity and amount. e) Calculate the quantity to sell to increase the profit 50% if possible. IV. Preparing the quarterly cash budgets of the next year, obtained the following sales forecasts from the marketing department, indicate if there is a need of cash borrowing if yes compute the need of loan: SalesForecastsI.Quarter18.000U.II.Quarter20.000U.III.Quarter25.000U.IV.Quarter22.000U.I.QuarterofYearAfter30.000U. Unit sale price will be $18 and expected to collect 1/2 cash, 1/41 month, 1/42 months later. In the production of one unit end product 4 units of direct material will be used. Marketing department needs a 15% end product stock of the following period sales at the end of every period. Manufacturing department needs a 20% direct material stock of the material to be used in the following period production at the end of every period. There is no stock in the beginning of the first quarter and no need at the end of the end of the next year's first quarter. Direct material is expected to purchase at 2$/U and to be paid half cash half 1 month later. Direct labor is budgeted as the half of the direct material cost and will be paid in cash. Manufacturing overhead will be the half of the direct labor and will be paid also in cash. There is no cash in the beginning and no need at the end of the year. II. As a well known pullover brand, we sell pullovers 50.000 units a year for $130 and $96 total cost per unit in general. A research on sales quantity showed that a 40% increase in production quantity will cause a $6 decrease in the unit cost. a) Compute the breakeven points in quantity and amount. b) Compute the quantity to sell to get a profit of $3.300.000. III. The sale price of the unique product is $30, contribution margin ratio 70% and the expectation for the following period are to get $422.300 profit with a sale 28.700pcs which is the 70% of the capacity of the factory. Realized new market researches for profit planning and obtained the following results: a) 10% decrease in the unit sale price will cause a 15% increase in the sales quantity, b) 10% increase in the unit sale price will cause a 15% decrease in the sales quantity, c) 5% decrease in the unit sale price will cause a 10% increase in the sales quantity. As a manager of the business make your decision, is there a need to make a change in the sale price, if "Yes" choose the most appropriate option. d) Calculate the quantity to sell to reach the BEP in quantity and amount. e) Calculate the quantity to sell to increase the profit 50% if possible. IV. Preparing the quarterly cash budgets of the next year, obtained the following sales forecasts from the marketing department, indicate if there is a need of cash borrowing if yes compute the need of loan: SalesForecastsI.Quarter18.000U.II.Quarter20.000U.III.Quarter25.000U.IV.Quarter22.000U.I.QuarterofYearAfter30.000U. Unit sale price will be $18 and expected to collect 1/2 cash, 1/41 month, 1/42 months later. In the production of one unit end product 4 units of direct material will be used. Marketing department needs a 15% end product stock of the following period sales at the end of every period. Manufacturing department needs a 20% direct material stock of the material to be used in the following period production at the end of every period. There is no stock in the beginning of the first quarter and no need at the end of the end of the next year's first quarter. Direct material is expected to purchase at 2$/U and to be paid half cash half 1 month later. Direct labor is budgeted as the half of the direct material cost and will be paid in cash. Manufacturing overhead will be the half of the direct labor and will be paid also in cash. There is no cash in the beginning and no need at the end of the year