Cost Behavior
Assignment Details
Assignment Description
You are the plant accountant for a company that makes a popular brand of basketball shoes. Currently, your company sells 1,000 pairs of shoes each month for $100 apiece. The variable costs are 40% of sales, and the fixed costs are $35,000/month. The company’s advertising director is asking for an increase in her marketing budget of $1,500 per month. She plans to enhance her marketing campaign in a targeted area of the West Coast. She estimates that the additional advertising will result in a 50% increase in demand. For this situation, the additional advertising costs are considered a fixed cost. What is the impact of this request on the company’s operating income? On the other hand, the production manager believes that this increase in sales could put pressure on the production line. He estimates that there will need to be a $2.00 increase in labor costs per unit.
Consider the following:
Using the projected monthly income figure calculated above, how many units would the company need to sell to meet the initial monthly income figure?
What is the break-even sales volume needed?
Summarize the results of your analysis.
Respond to the following for this assignment:
How did you calculate the original operating income and break-even point before changes?
What is the new break-even point after including the effects of the increased advertising and higher variable costs?
Compare the two break-even results, and make a recommendation on whether the company should change or not.
Be sure to show your breakeven analysis in a table in a word document. Answer the questions above as part of your analysis. The assignment is 5 pages minimum. The breakeven analysis can be one page of the analysis. Assignments should follow APA formatting requirements.
Submitting your assignment in APA format means, at a minimum, you will need the following:
Title page: Remember the running head. The title should be in all capitals.
Length: 5 pages minimum
Abstract: This is a summary of your paper, not an introduction. Begin writing in third person.
Body: This begins on the page following the title page and abstract page and must be double-spaced (be careful not to triple- or quadruple-space between paragraphs). The typeface should be 12-pt. Times Roman or 12-pt. Courier in regular black type. Do not use color, bold type, or italics, except as required for APA-level headings and references. The deliverable length of the body of your paper for this assignment is 5 pages. In-body academic citations to support your decisions and analysis are required. A variety of academic sources is encouraged.
Reference page: References that align with your in-body academic sources are listed on the final page of your paper. The references must be in APA format using appropriate spacing, hanging indent, italics, and uppercase and lowercase usage as appropriate for the type of resource used. Remember, the Reference page is not a bibliography but a further listing of the abbreviated in-body citations used in the paper. Every referenced item must have a corresponding in-body citation.
Get Your Paper Before the Deadline. Our Services are 100% private and Confidential
Useful Links That Will Help You Around
Link to new order https://studentsolutionsusa.com/orders/stud/new
link to login page https://studentsolutionsusa.com/orders/login
New user registration link https://studentsolutionsusa.com/orders/register
Forgot Password https://studentsolutionsusa.com/orders/forgot/password
FREQUENTLY ASKED QUESTIONS
Question: How does this work?
Answer: Good Question. We are a group of a freelance board of students and professional essay writers. At our website, you may get help with any type of academic assignments: essay, coursework, term paper, business plan, case study, article review, research paper, presentation, and speech. Top writers can help with complex assignments such as dissertations, thesis papers, etc. All of them are professionals possessing excellent knowledge in their field of expertise, perfect writing skills, quality, and speed. When you place an order on our website, we assign it to the best writer. Once the writer finishes the work, the paper is submitted to our quality assurance desk who go through it and ensure it is unique and plagiarism free and that the instructions were followed to the detail. After this step we upload the paper in your account, we also send a copy to the email that you used to register the account with. we can guarantee you that the paper will be 100% plagiarism free. Besides, our services are 100% private and confidential
Question: How do I place an Order after getting to the order page
Answer: There are three major steps in the ordering process
Step 1 ....................................................paper details In this step, you will fill in the instructions of your paper; you can upload any materials that you feel will make your assignment a success. Besides, you can also email us at [email protected] Remember to specify the correct academic level. Please note that sources mean the number of references.
Step 2...................................................... Price calculation Kindly specify the number of pages, type of spacing and the correct deadline. This step will give you the estimated cost minus discount -- you may add the extra features if you wish.
Step 3 ....................................................discount and payment Use the discount code HAPPY2018 to enjoy up to 30% discount of your total cost After this step, proceed to safe payment; you can checkout using your card or PayPal Please note we will send the complete paper to the email you will provide while registering. A copy will also be uploaded to your account
Question: How will I know when my paper is complete? or How will I get the complete Paper?
Answer: Once we are done with the paper, we will be uploaded to your account. A copy will also be sent to the email you registered with. We can guarantee you the following:- 1. Our service is private and confidential; we don't spam or share your contacts with anyone 2. The final paper will be plagiarism free. We will send a Turnitin Report to the email you registered with 3. At our company, willing to do free unlimited revisions until you are satisfied with your paper
Question:- Am a new client, How can I get the guarantee that the paper will be completed and sent to me before my deadline?
Answer: Thank you for expressing your concerns. We would love to have you as our loyal customer. We are certain if we do good work, you will come back for me. Besides, you will give us referrals to your friends and family. For that reason, we can’t fail to deliver your paper within your specified time frame. We will ensure we submit the paper on time so that you can have enough time to go through it, if you have problems with the paper delivered, you can request a free revision. You are entitled to as many revisions as you would wish until you get a paper that satisfies you
Useful Links That Will Help You Around
Link to new order https://studentsolutionsusa.com/orders/stud/new
link to login page https://studentsolutionsusa.com/orders/login
New user registration link https://studentsolutionsusa.com/orders/register
Forgot Password https://studentsolutionsusa.com/orders/forgot/password
