Module 2: Critical Thinking

Critical Thinking Assignment (60 Points)

Important! Read First

Option #1: CVP Analysis Problems Without Tax

In this course, you are required to select option #1 or #2 for your Critical Thinking assignment. Select which assignment of the two options you would like to complete. Once you select Option #1 or #2, you are required to complete both part A and B of your selected Critical Thinking assignment. Also, for part A, you are required to complete one of two options in Connect. These are assignments for which there is no time limit. You will be given two attempts to complete the Critical Thinking assignment.

The Critical Thinking Options #1 and #2 open at the start of the week in which they are scheduled. The Critical Thinking Option you choose is due by 11:59 PM MT on Sunday of the same week.

Please refer to the CSU Global late policy for Critical Thinking assignments if you have any questions on due dates.

Required: Complete the following activities:

Part A:

Complete Option #1 Module 2: Critical Thinking in Connect. This option involves using Connect and requires you to calculate the following items: break-even point (units and sales dollars); before tax income/loss, margin of safety and margin of safety ratio; and a new break-even point under a revised cost scenario.

Part B: Written Component

Considering what you have learned in this module, explain why cost-volume-profit analysis is important for a company. What does the company need to understand about its costs to be able to perform CVP analysis (i.e. which cost classification?)? How might a company that has converted from a highly manual process to an automated one compare from the year before the transition to the year after, in regard to their break-even point and the degree of operating leverage? Explain the pros and cons to automating the processes.

1. Your paper should be 1-2 pages in length.
2. Submit your written assignment to the Dropbox in Canvas.
3. You must follow APA guidelines with respect to use of subheadings, have one-inch margins, and be double spaced. Format your paper according to the CSU Global Writing Center. (Links to an external site.)
4. References must include the textbook plus two additional credible academic references. All sources used, including your textbook must be referenced. Paraphrased and quoted material must have accompanying citations and be cited per APA guidelines. The CSU Global library is a good place to find references.
5. Review the grading rubric to understand how you will be graded on this assignment. Reach out to your instructor if you have questions about the assignmen