The purpose of this assignment is to develop written communication skills to support managerial decision making.Students will use and interpret accounting data to support their decisions.Students must document their rationale for making each decision by referencing the appropriate facts and figures involved in this case.

ACC 202 Written Communication Assignment Overview: The purpose of this assignment is to develop written communication skills to support managerial decision making. Students will use and interpret accounting data to support their decisions. Students must document their rationale for making each decision by referencing the appropriate facts and figures involved in this case. Grading: This assignment is worth 25 points and grading will be based on determining the right answer for each question and documenting the explanation in a very clear and concise writing style. Grammar will be assessed and graded and typographical errors will be penalized. Please see grading rubric at the end of the document. This rubric is required by the Lee Business School. Please have a classmate or friend proof-read your document. Please type your responses in Word Case: The Dial Company specializes in producing a set of wood patio furniture consisting of a table and four chairs. The set enjoys great popularity, and the company has ample orders to keep production going at its full capacity of 3,000 sets per year. Annual cost data at full capacity follow: Direct labor . . . . $118,000 Advertising . . . . . $50,000 Factory supervision . . . . . . . $40,000 Property taxes, factory building $3,500 Sales commissions . . $80,000 Insurance, factory . . . .. . $2,500 Depreciation, administrative office equipment . . . . . $4,000 Lease cost, factory equipment $12,000 Indirect materials, factory . . .. $6,000 Depreciation, factory building..... .. . . . . . $10,000 Administrative office supplies (billing) . . . $3,000 Administrative office salaries . . . . . . . . . $60,000 Direct materials used (wood, bolts, etc.) $94,000 Utilities, factory..... . . . . . .. . $20,000 The patio sets are normally sold for $120 per set. Dial can increase capacity by 1,000 unitsThe patio sets are normally sold for $120 per set. Dial can increase capacity by 1,000 units but must pay $25,000 to do so. Annual cost data for the production of 3,000 sets are classified as follows: Selling or Cost Behaviour Administrative Product Cast Cast Nem Variable Cost Diner Direct labor. 5118,000 5118,000 Advertising $50,000 $50,000 Factory supervision 40.000 $40,000 Property taxes, factory building 3.500 3,500 Sales commissions. 80.DO0 Insurance, factory 1500 2,50 Depreciation, administrative office equipment 41000 4.000 Lease cost, factory equipment 12 000 12,000 Indirect materials, factory 6.000 6,000 Depreciation, factory building 10.000 Administrative office supplies 3.000 3,000 Administrative office salaries 50.000 60.DO0 Direct materials used 94.000 94,000 Utilities, factory 201000 20,000 Total costs.. $197.000 $212.000 594,000For the following questions, please use the information on pages I and 2 to help support your decisions. Please document your answer in a clear, concise way and reference any numbers that were used to make your decision. Each question is independent and refers to the original data unless specified otherwise. For each question, please use up to 100 words. 1) Assume demand for 2020 is 2,000 units, what would be the minimum price that you would charge if you wanted to make a profit. Why is this the correct price? Please explain your calculations. 2) If demand for 2020 is instead 3,500 units should the company pay to increase their capacity? Why? Please explain your calculations. Assume units are sold at the normal price. 3) Assume demand is 2,990 units for 2020. If the company receives a special order for the next 10 units at $100 per set ($1,000 in total), would you accept this order? Why? Assume there is no better offer for the last ten units. 4) Assume demand can be 4,000 units in 2020 if the company pays to increase their capacity and if the company does additional online advertising that would cost $10,000. Assume the normal selling price of $120 per set. Would you advise the company to pay to increase capacity and pay for the additional online advertising? Why? Please explain your calculations. 5) Assume demand for 2020 is 3,100 units and you have decided that it is not worth it for Dial to expand production capacity. A competitor says that her company can supply you with 100 units for $10,000 and Dial can sell these units at the normal price. Will you advise Dial to take the offer and how does this compare to your own costs of making 100 additional units (do not consider the capacity expansion costs)?Lee Business School Writing Assessment Rubric Performance Criteria Exceeds Expectations A Grade Meets Expectations B-C Grade Below Expectations D or F Grade 1. Content * Accomplished purpose of Accomplished purpose of * Accomplished purpose of assignment directly and assignment in a capable manner assignment only partially or completely in an exceptional . Major topics covered but indirectly manner supporting details somewhat Little or no supporting data or All major topics thoroughly lacking in specificity, accuracy, or data presented was not relevant, supported by specific, accurate, relevance specific, or accurate relevant data 2. Organization . Exceptionally clear sense of unity . Adequate sense of unity and . Lacked sense of unity and order, and order, logical transitions, order, most transitions effective, ineffective/lack of transitions, highly effective opening and clear opening and closing ineffective opening and closing closing 3. Style Used smooth, clear, readable . Used smooth, clear readable Lacked smooth, clear, readable (clarity & prose in a superior way prose throughout most of paper, prose, contains cliches and conciseness) throughout, no cliches or few cliches, occasional wordiness, wordiness, generally ineffective wordiness, consistently effective generally appropriate word word choice word choice choice 4. Grammar & . Few, if any, errors throughout in Not more than a few errors per . More than a few errors per page Mechanics use of Standard English rules of page in use of Standard English in use of Standard English rules of grammar, spelling punctuation, rules of grammar, spelling. grammar, spelling, punctuation, capitalization, and usage punctuation, capitalization, and capitalization, and usage that usage, but did not affect overall made the paper unclear or clarity difficult to read 5. Citation & . Correctly and clearly No more than a few clarity Frequently incorporated source Documentation incorporated source material into problems incorporating source material unclearly or documented the paper, documented sources material or in documenting sources inaccurately or incorrectly accurately and correctly ources accurately and correctly 6. Professionalism Writing was exceptionally reader- Writing was consistently reader- Writing was not reader-centered center and valid, used positive center and valid, used positive and valid, used negative or sexist language, and lacked sexist language, and lacked sexist language, or made non-relevant language and non-relevant language and non-relevant references to age, gender, or racereferences to age, gender, or references to age, gender, or race race 7. Format . Paper had an extremely Paper had a professional, . Paper did not have a professional, professional, balanced reasonably well-balanced balanced appearance, pages were appearance, pages were appearance, pages were not numbered, and/or any numbered, and any headings numbered, and any headings headings were not generally were descriptive, in parallel form, were generally descriptive, in descriptive, in parallel form, or and extremely helpful to the parallel form, and helpful to the helpful to the reader. reader reader 8. Revision * Ample evidence of Some evidence of revision and No evidence of revision and/or comprehensive revision and proofreading proofreading. close proofreading