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Accounting for Decision Makers




Question;Accounting for;Decision Makers;Question #1;Assume;the CFO of your organization approaches you to ask your advice about;implementing the Balanced Scorecard at your organization. What steps would you;encourage him or her to take in order to successfully implement and use the;Scorecard to manage the organization? As part of your answer, be sure to;describe any roadblocks to be avoided. Be;specific.;Question #2;The;following is budgeted information for the Samantha Corporation;Product;1;Product;2;Annual production & sales;60,000;40,000;Projected selling price;$12;$18;Direct Production Cost Information;Materials (per unit);$2;$4;Direct Labor (per unit);$3;$6;Additional;information;Selling & administrative costs (a mixed;cost) are budgeted to be $260,000 at the production and sales listed;above. The variable component is $2 per unit (same for each product).;Manufacturing overhead costs (a mixed cost) are;budgeted to be $246,000 at the production and sales listed above. The;fixed component is $96,000. Each product uses the same amount of variable;manufacturing overhead per unit.;Assuming;the budgeted sales mix remains intact, how many units of each product does Samantha need to sell in order to break;even?;Question #3;Consider the following information, prepared based;on a capacity of 100,000 units;Category;Cost per Unit;Variable;manufacturing costs;$12.00;Fixed;manufacturing costs;$3.00;Variable;selling costs;$5.00;Fixed;selling costs;$2.00;Capacity;cannot be added in the short run and the firm currently sells the product for;$30 per unit.;a) The company;is currently producing 90,000 units per month. A potential customer has;contacted the firm and offered to purchase 10,000 units this month only. The;customer is willing to pay $24 per unit. Since the potential customer;approached the firm, there will be no variable selling costs incurred. Should;the company accept the special order? Why or why not? Be specific.;b) Assume the;same facts as in part a, except that the company is producing 100,000 units per;month. Should the company accept the special order? Why or why not? Be specific.;Question #4;Assume;a company produces and sells the following 3 products. If the company is;limited to 4,000 machine hours (MH), how many units of each product should it;produce in order to maximize operating income?;Product;A;B;C;Selling;price per unit;$150;$200;$140;Variable;costs per unit;$60;$80;$60;MH;required per unit;5;10;4;Maximum;sales (units);350;400;600


Paper#41098 | Written in 18-Jul-2015

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