QUESTION 1 All the situations listed below needs the use of accounting information to execute one or more of the following managerial tasks: (1) planning, (2) control and evaluation, (3) continuous improvement, or (4) decision making. 1) MANAGER: At the previous executive board meeting, we built up a target of procuring an after-tax profit equivalent to 25 percent of sales. I would like know the total revenue that we have to make so as to meet this goal, given that we have RM350,000 to spend on the marketing and promotional events. Once I have estimated sales in units, we then need to outline a promotional campaign that conforms to our budget and that will take us where we want to be. However, to compute the targeted sales revenue, I have to determine the unit sales price, the unit variable cost, and the associated fixed production and support costs. Lastly, I also need to know the tax rate. 2) MANAGER: We have issues with our procurement procedure. The department of accounts payable is currently using almost 75 percent of its time settling differences between the purchase order, receiving order, and supplier's invoice. Incorrect part numbers on the purchase orders, incorrect quantities ordered, and wrong parts sent (or the incorrect quantity) are just a few examples of sources of discrepancies. A total reform of the process has been suggested, which will allow us to eliminate virtually all of the errors and, at the same time, significantly reduce the number of clerks needed in purchasing, receiving, and accounts payable. These reform assurances to substantially decrease costs, reduce lead time, and improve customer satisfaction. 3) MANAGER: This overhead cost report shows that we have spent considerably more on, purchasing, inspection and production than was planned. An examination has uncovered that the source of the issue is faulty components from suppliers. A supplier assessment has revealed that by choosing five suppliers with the best quality records (out of 12 presently used), the number of defective parts will be drastically decreased, as a result producing substantial overhead savings by decreasing the demand for inspections, reordering, and rework. 4) MANAGER: An establish large local company has met me and has offered to sell us one of the parts used in our small engines - a part that we are now producing internally. I need to know costs that we would avoid if this part is bought so that I can evaluate the economic benefits of this offer. 5) MANAGER: As of now, our lawn mower XP2000 is losing cash. Our goal is to increase the profits. I would like to know how much our profits would be if we decrease our variable costs by RM40 per mower keeping our present our current sales units. Also, marketing department assertions that if we increase advertising expenditures by RM1,500,000 and reduce prices by 14 percent, we might increase the quantity of mowers sold by 30 percent. I wish like to know which approaches offers contribute the most profit, or if a mix of the approaches might be best. 6) MANAGER: Our department are executing a significant quality enhancement program. We would like to increase the investment in deterrence and detection activities with the expectation of driving down both internal and external failure costs. We hope to see pattern reports for all classifications of quality costs. We wish to see if enhancing quality really does decrease costs and increase profitability. 7) MANAGER: Our engineering design department has offered a new design for our product. The new design assurances to lessen post-purchase costs and, as a result, improve market share. I would like to know the total cost of producing this new design because it uses some new parts and requires some different manufacturing processes. I would then like to have a forecasted income statement based on the new market share and new production costs. The planned selling price will be the same, or maybe even 10 percent lower. Forecasts based on the two price circumstances would be needed. 8) MANAGER: Our engineers have mentioned that by redesigning our two main production processes, we can decrease move time by 92 percent and wait time by 80 percent. This would reduce cycle time and nearly get rid of the need to carry finished goods inventories. Ontime deliveries would also increase tremendously. This would contribute to cost savings of nearly RM25,000,000 per year. Market share and revenues would also increase respectively. Required: a) Describe each of the four managerial responsibilities with an example.