Accounting Homework

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acc600_week_6_assignment_template.xlsx

Exercise 1

Name: <Name>
Exercise 1
Making special pricing decisions
Suppose the Baseball Hall of Fame in Cooperstown, New York, has approached Hungry-Cardz with a special order. The Hall of Fame wishes to purchase 55,000 baseball card packs for a special promotional campaign and offers $0.33 per pack, a total of $18,150. Hungry-Cardz’s total production cost is $0.53 per pack, as follows: # of units 55,000
Sales per pack $0.33
Total Cost $18,150
Variable costs:
Direct materials $0.13
Direct labor 0.04
Variable overhead 0.11 $0.28
Fixed overhead 0.25
Total cost $0.53
Hungry-Cardz has enough excess capacity to handle the special order.
Instructions
Requirement 1: Prepare a differential analysis to determine whether Hungry-Cardz should accept the special sales order.
Expected (increase/decrease) in revenue
Expected (increase/decrease) in variable manufacturing costs
Expected (increase or decrease) in operating income
Should Hungry-Cardz accept the special sales order?
Requirement 2: Now assume that the Hall of Fame wants special hologram baseball cards. Hungry-Cardz will spend $5,000 to develop this hologram, which will be useless after the special order is completed. Cost to develop $5,000
Expected (increase/decrease) in revenue
Expected (increase/decrease) in variable manufacturing costs
Expected (increase/decrease) in fixed manufacturing costs
Expected (increase or decrease) in operating income
Should Hungry-Cardz accept the special order under these circumstances, assuming no change in the special pricing of $0.33 per pack?

Exercise 2

Name: <Name>
Exercise #2
Making dropping a product decisions
Top managers of Best Video are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision:
Best Video
Income Statement
For the Year Ended December 31, 2016
Total Blue-ray Discs DVD Discs
Sales Revenue 432,000 309,000 123,000
Variable Costs 240,000 150,000 90,000
Contribution Margin 192,000 159,000 33,000
Fixed Costs:
Manufacturing 134,000 75,000 59,000
Selling and Administrative 69,000 52,000 17,000
Total Fixed Expenses 203,000 127,000 76,000
Operating Income(loss) (11,000) 32,000 (43,000)
Total fixed costs will not change if the company stops selling DVDs.
Instructions:
Requirement 1: Prepare a differential analysis to show whether Best Video should drop the DVD product line.
Expected (increase/decrease) in revenue
Expected (increase/decrease) in total variable costs
Expected (increase/decrease) in operating income
Should Best Video drop the DVD product line?
Requirement 2: Will dropping DVDs add $43,000 to operating income? Explain.

Grading Rubric

Faculty Name: Dr. Bolden
Course Name: ACC-600-2957-Accting & Fin for Managers-08-2016
Student Name: <Name>
Assignment 6
Students complete the following worksheet: ACC 600 Assignments Week Six
Student Proficiency 71.82
Basic Developing Accomplished Advanced Exceptional
EVALUATION CRITERIA Total Weight Possible Points 0-69% 70-79 % 80-89% 90%-99% 100% Comments for Student Points
0
SCOPE - How well does the student’s work incorporate all aspects of the assignment’s elements and the learning outcome(s)? 40% 28.7 The assignment contains few of the assignment elements and reflects few, if any, aspects of the specified learning outcome(s). The assignment reflects some of the assignment elements and aspects of the specified learning outcome(s). The assignment reflects most of the assignment elements and aspects of the specified learning outcome(s). The assignment reflects all assignment elements and aspects of the specified learning outcome(s). The assignment elements are comprehensive, incorporated throughout the paper, and content not relevant to the assignment has been excluded.
0
ACCURACY - How accurately does the student use the course concepts, vocabulary, and principles learned in the course? 40% 28.7 Very few, if any, learned concepts, terms, and principles are used correctly throughout the assignment. Some of the learned concepts, terms, and principles are used correctly throughout the assignment. Most of the learned concepts, terms, and principles are used correctly throughout the assignment. All of the learned concepts, terms, and principles are used correctly throughout the assignment. This assignment reflects a thorough understanding of course content from the specified weeks, by applying the concepts and vocabulary in the appropriate context.
0
APPLICATION - How well does the student use critical thinking to apply the course concepts, vocabulary, and principles learned in the course throughout the assignment and connect the learning outcomes to current or real world situations? 10% 7.2 Very few, if any, course concepts are presented within the student’s assignment, and little analysis is provided. Course concepts are presented, but few, if any, are demonstrated through the student’s use of critical thinking supported by course concepts. Most of the course concepts are addressed and the student has used an adequate amount of critical thinking to apply them to the assignment. The assignment addresses the course content throughout the assignment that applies the concepts with demonstrated critical thinking This assignment applies the content to specific real world examples, analyzing the concepts from different perspectives. Direct quotations are used sparingly and thoughts expressed in the student's own words that demonstrate student's ability to assimilate/apply/extend concepts beyond the content derived from research sources.
0
RESEARCH AND SUPPORT - How well are the student’s ideas and opinions supported with the depth and breadth of the required research for thorough understanding? 0% 0.0 The assignment does not include enough information or examples that support the student’s position. The assignment presents a position supported by minimal use of personal experience, observation, and research using both scholarly and non-scholarly sources. The assignment presents a position by a fairly thorough analysis of personal experience, observation, using both scholarly and non-scholarly sources. The assignment presents a position based on a deep integration of all relevant support and research sources. The research/supporting material extends well beyond the text and include sources which supplement and/or provide new perspectives on the subject matter. When appropriate, all sources reflect reliable scholarly sources which add depth to the assignment's content. N/A
0
ORGANIZATION AND COHERENCE - How well does the student make use of Excel to complete the requirements of the assignment. 10% 7.2 Excel was not used; not all formulas were provided. Student used Excel, although did not use formulas or show how numbers were computed. Student used Excel and formulas for some of the computed answers. Student used some formulas in Excel and/or showed how all numbers were computed. Student used Excel formulas for all computed answers.
0
CONVENTIONS AND WRITING STYLE - How well does the student apply the rules of Standard Written English and follow the West Writing Style Handbook guidelines? 0.00% 0.0 There are serious errors in the application of Standard Written English that impact clarity and effectiveness and/or severe violations of West Writing Style Handbook guidelines. There are fundamental errors in the application of Standard Written English that impact clarity or effectiveness and/or significant infractions of West Writing Style Handbook guidelines. There are minor errors in the application of Standard Written English or West Writing Style Handbook guidelines. Language is especially clear and concise and follows the conventions of Standard Written English, as well as West Writing Style Handbook guidelines without error. Writing is free of all grammatical and typographical errors. Sentences are complete and concise with precise word choices. All citations and references must be correctly formatted and applied as required to conform to WEST standards of academic integrity. N/A
100% Total grade 0.00