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Please provide assistance for this assignment, use the PPT and its current subject in continuation from Mod 1, Thanks. TRIDENT UNIVERSITY Module 2 SLP: Cost-Volume-Profit
Please provide assistance for this assignment, use the PPT and its current subject in continuation from Mod 1, Thanks.
TRIDENT UNIVERSITY Module 2 SLP: Cost-Volume-Profit Analysis ACC501: Accounting for Decision Making Dr. Mary Dereshiwsky July 29, 2015 Air Filter for Ventilation Systems I would like to present my idea of producing air filters for ventilation systems. Over years, the number of ventilation systems installed in homes and office location has increased significantly. This provides huge business opportunity to improve the markets for the air filters. The air filters are aimed at purifying air including taking out dust, pollen grains, and viruses from the air. This will assist in improving the overall air quality and purity. The company should invest a considerable capital in the development of air filters. In summary, I will provide a cost behavior analysis on the cost elements of the air filters as well as pricing strategy and approach. Cost Estimates and Pricing The cost estimates of producing the air filters includes following Table 1: Cost Estimates of Air Filters Cost element Estimates(Cost per Unit, S$) Labor Cost 7.0 Parts cost 3.0 Fixed Cost 2.0 Overhead cost 5.5 Total cost per unit 17.5 Pricing Suggestions It would be recommendable to price the air filters at close to $25 and $30. Such prices would be useful in covering the overall costs involved in the production of the air filters in the company. It is important to use the cost plus costing approach to determine the selling price of the air filters. This will help in ensuring that the company makes a considerable amount of profits form the new product. The cost plus pricing approach is based on the need to assist the company with the overall production costs which stands at $17.5 per unit. Therefore, the selling price of $25 per cent or $30 per cent is appropriate to ensure that all the costs involved are covered by the consumers. Cont. With continued production, it is expected that the parts cost per unit might lower to $1.5 per unit and the overhead costs to $3.0. This would lower the overall costs per unit to $12.5 due to the economies of scale. The reduction in the overall costs per unit would offer opportunity to grow the production of the products as well as improving the potential profit. Module 2 Module 2 - SLP COST-VOLUME-PROFIT ANALYSIS Second part of the presentation. See background information for the module one SLP. Required: Include the following items in your presentation. What about special pricing (625-628, Acc) for some markets or customers? Show effect on revenues and profitability based on stated assumptions. Potential advantages and disadvantages, both financial and nonfinancial. What are the relevant costs to consider? SLP Assignment Expectations Submit a Power Point presentation or a Word Document. A Power Presentation should have no more than six slides and a Word document cannot exceed two pages. Use words, tables, and graphs to make a succinct presentation. Document all sources and provide links at the end. It is acceptable to add another slide or page to list the sources. Combine the submissions from prior module(s) into one file before uploading to the dropboxStep by Step Solution
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