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write a report and answer the question? ASSIGNMENT A : INTRODUCTION TO FINANCE AND ACCOUNTING You are the new Management Accountant of Downtown Micro Ltd,
write a report and answer the question?
ASSIGNMENT A : INTRODUCTION TO FINANCE AND ACCOUNTING You are the new Management Accountant of Downtown Micro Ltd, which manufactures a specialised micro chip that enables any ordinary remote control to operate all kinds of televisions. The variable cost of each chip is 25 and the selling price per chip is 40. Due to the entry of a major American player into the U.K. market, this proven to be quite challenging. The company has an annual fixed cost of 2.5 million, management would like you to advise on the break-even output showing your calculations. a) Introduction to break-even-analysis and its uses in decision making. 400 words b) Discuss howl break-even-analysis can be used as decision making tool. 500 words c) How can break-even-analysis be used a budget preparation tool. 350 words Marking Criteria Max Marks Answer description If good introduction, proper report presentation Report format and presentation format is used and decent Cost-Volume-Profit Profitability 10 Computation of marginal cost and calculation of total contribution 10 Calculation of required sales to achieve a target profit 86,500,000 Adviing Snior management with the supporting argument of using break- even-point and how that can help with management decision 10 Break-even point 20 ASSIGNMENT A : INTRODUCTION TO FINANCE AND ACCOUNTING You are the new Management Accountant of Downtown Micro Ltd, which manufactures a specialised micro chip that enables any ordinary remote control to operate all kinds of televisions. The variable cost of each chip is 25 and the selling price per chip is 40. Due to the entry of a major American player into the U.K. market, this proven to be quite challenging. The company has an annual fixed cost of 2.5 million, management would like you to advise on the break-even output showing your calculations. a) Introduction to break-even-analysis and its uses in decision making. 400 words b) Discuss howl break-even-analysis can be used as decision making tool. 500 words c) How can break-even-analysis be used a budget preparation tool. 350 words Marking Criteria Max Marks Answer description If good introduction, proper report presentation Report format and presentation format is used and decent Cost-Volume-Profit Profitability 10 Computation of marginal cost and calculation of total contribution 10 Calculation of required sales to achieve a target profit 86,500,000 Adviing Snior management with the supporting argument of using break- even-point and how that can help with management decision 10 Break-even point 20Step by Step Solution
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