MBA 500: Accounting for Management

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MBA500-2_Assignment2dueWeek12.html

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    MBA 500: Accounting for Management

    Assignment 2 (due Week 12)

    (See attachment) For the three cases that follow, prepare a differential analysis. • Case A (Discontinue a Product): Product K has revenue of $65,000, variable cost of goods sold of $50,000, variable selling expenses of $12,000, and fixed costs of $25,000, creating a loss from operations of $(22,000). o Required: Prepare a differential analysis dated February 22 to determine whether to continue Product K (Alternative 1) or discontinue Product K (Alternative 2), assuming fixed costs are unaffected by the decision. • Case B (Make versus Buy): A company manufactures a component of a product for $80 per unit, including fixed costs of $25 per unit. The component could be purchased from an outside supplier for $60 per unit, plus $5 per unit freight. o Required: Prepare a differential analysis dated November 2 to determine whether the company should make (Alternative 1) or buy (Alternative 2), assuming fixed costs are unaffected by the decision. • Case C (Sell or Process Further): Product T is produced for $2.50 per gallon. Product T can be sold without additional processing for $3.50 per gallon or processed further into Product V at an additional total cost of $0.70 per gallon. Product V can be sold for $4.00 per gallon. o Required: Prepare a differential analysis dated April 8 to determine whether to sell Product T (Alternative 1) or process it further into Product V (Alternative 2). Requirement: 1. Download the attachment. 2. Fill in your answer in the yellow boxes. 3. Upload this attachment when it is complete.   Case A (Discontinue a Product): (2 points) Continue Product K (Alt. 1) Discontinue Product K (Alt. 2) Differential Effects (Alt. 2) Revenues Costs: Variable Fixed Profit (loss) Here is the partial answer. You have to finish the rest.   Case B (Make vs. Buy): (2 points) Make Component (Alt. 1) Buy Component (Alt. 2) Differential Effects (Alt. 2) Unit costs: Purchase price Freight Variable costs Fixed factory overhead Total unit costs Here is the partial answer. You have to finish the rest.   Case C (Sell or Process Further): (1 point) Sell Product T (Alt. 1) Process Further Product V (Alt. 2) Differential Effects (Alt. 2) Revenues Costs, per unit Profit (loss) Here is the partial answer. You have to finish the rest. MBA 500-Assignment 2 (Due Week 12).docx Grade-only 5 points Due Nov 7, 2021 11:59pm
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    MBA 500-Assignment 2 (Due Week 12).docx Added by Tim Trieu on Oct 17, 2021 10:06am   ·   Word Document  ·   Size: 58.6 KB