B6021 Module 3 Assignment 2 LASA 1 Cost and Decision-Making Analysis\u00a0\t\u00a0\tCost and Decision-Making Analysis\t\u00a0\tCheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation.\t\u00a0\tCheryl: “Wes, I’m not sure how to go about answering the questions that came up at the meeting with the President yesterday.”\ufffd\t\u00a0\tWes: “What’s the problem?”\ufffd\t\u00a0\tCheryl: “The president wanted to know the break-even point for each of the company’s products, but I am having trouble figuring them out.”\ufffd\t\u00a0\tWes: “I’m sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.”\ufffd\t\u00a0\tPiedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below:\t\u00a0\t\u00a0\t\u00a0\tVelcro\t\u00a0\tMetal\t\u00a0\tNylon\t\u00a0\tNormal annual sales volume\t\u00a0\t\u00a0\t\u00a0\t100, 000 units\t\u00a0\t200,000 units\t\u00a0\t400,000 units\t\u00a0\tUnit selling price\t\u00a0\t$1.65\t\u00a0\t$1.50\t\u00a0\t$0.85\t\u00a0\tVariable cost per unit\t\u00a0\t$1.25\t\u00a0\t$0.70\t\u00a0\t$0.25\t\u00a0\tTotal fixed expenses are $400,000 per year.\t\u00a0\tAll three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers.\t\u00a0\tThe company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories.\t\u00a0\tUsing the module readings, the Argosy University online library resources, and the Internet, research break-even point and costing systems. Analyze the case based on your research and what you have learned so far in the course.\t\u00a0\tRespond to the following:\t\u00a0\tCalculate the company’s overall break-even point in total sales dollars. Explain your methodology.\t\u00a0\tOf the total fixed costs of $400,000: $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages):\tCalculate the break-even point in units for each product. Explain your methodology.\t\u00a0\tDetermine the overall profit of the company if the company sells exactly the break-even quantity of each product. Present your results.\t\u00a0\tEvaluate costing systems for this company. Explain if this company should be using a job order or process-costing system to accumulate costs (1 page).\t\u00a0\tYour final product will be a Word document, approximately 5-6 pages in length.\t\u00a0\t\u00a0Apply APA standards to citation of sources. Be sure to include your calculations in Microsoft excel format.<\/p>\n","protected":false},"excerpt":{"rendered":"
B6021 Module 3 Assignment 2 LASA 1 Cost and Decision-Making Analysis\u00a0 \u00a0 Cost and Decision-Making Analysis \u00a0 Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation. \u00a0 Cheryl: “Wes, 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-202454","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/202454","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=202454"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/202454\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=202454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=202454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=202454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}