Week Five Individual Assignment\t\u00a0\tPurpose of Assignment\u00a0\tThe Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making.\u00a0\tAssignment Steps\u00a0\tResources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)\u00a0\tTutorial help on Excel\u00ae and Word functions can be found on the Microsoft\u00ae Office website. There are also additional tutorials via the web offering support for Office products.\u00a0\tScenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.\tComplete the following:\u00a0\t“\ufffd Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.\t“\ufffd Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).\t“\ufffd Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.\tPrepare a maximum 700-word informal memo to management addressing Mary’s suggested changes.\u00a0\t“\ufffd Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.\tShow your work in Microsoft\u00ae Word or Excel\u00ae.\u00a0\tComplete calculations\/computations using Microsoft\u00ae Word or Excel\u00ae. \u00a0\u00a0\tFormat your assignment consistent with APA guidelines.<\/p>\n","protected":false},"excerpt":{"rendered":"
Week Five Individual Assignment \u00a0 Purpose of Assignment\u00a0 The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making.\u00a0 Assignment Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-200415","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=200415"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/200415\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=200415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=200415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=200415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}