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UOP ACC561 WileyPLUS Week 5 Assignment - Paper




Question;Wiley PLUS Assignment: Week 5 Assignment - PaperResource:WileyPLUSAccessthe following Week 5 Assignment in WileyPLUS:Broadening Your Perspective 18-1Writea paper of no more than 750 words in which you respond to the Broadening Your Perspective 18-1 activity titled "Decision Making Across the Organization" in Ch. 18 of Accounting.The Martinez Company has decided to introduce a new product.;The new product can be manufactured by either a capital-intensive method or a;labor-intensive method. The manufacturing method will not affect the quality of;the product. The estimated manufacturing costs by the two methods are as;follows;Capital-Intensive;Direct Materials 5$ per unit;Direct Labor 6$ per unit;Variable Overhead $3 per unit;Fixed Manufacturing Costs $2,508,000;Labor Intensive;Direct Materials 5.5$ per unit;Direct Labor 8$ per unit;Variable Overhead $4.5 per unit;Fixed Manufacturing Costs $1,538,000;Martinez market research department has recommended an;introductory unit sales price of $30. The incremental selling expenses are;estimated to be $502,000 annually plus $2 for each unit sold, regardless of;manufacturing method.;a) Calculate the estimated break-even point in annual unit;sales of the new product if Martinez Company uses the;1-Capital intensive manufacturing method;2-Labor intensive manufacturing method;b) Determine annual unit sales volume at which Martinez;Company would be indifferent between the two manufacturing methods;c) Explain the circumstance under which Martinez should;employ each of the two manufacturing methods


Paper#41050 | Written in 18-Jul-2015

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