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Accounting Dicsussion Due In 5 hours! Please help!




All I need to do is reply to the discussion below. Post one reply to a peer's initial response providing further research beyond their response (100-200 word count range). I need one source with a 100-200 word reply on anything discussed below! Below is the discussion I Need to reply to.;Pepsi Co. - they have more automated equipment and fixed costs than Macy's;Macy's - Macy's, in comparison to would have more fixed costs because they have brick and mortar buildings, vs. who often uses third party distributors that warehouse products.;Ford Motor Company - same as the Pepsi Co., they have more automated equipment than Safeway, which means more fixed overhead than a grocery store.;Delta Airlines - airline companies would have high fixed costs due to the cost of the airplanes. It should be significantly more than Burger King.;Yes, it is possible for an established organization to change their contribution margin. They can usually do this by either changing their product mix (if more than one product is produced) or by increasing/decreasing unit sales. If a company were to perform below their break-even point for an extended period of time, they could go out of business. Imagine if an automotive company that uses automated equipment (higher fixed costs, lower variable costs) were to perform below average break-even sales. At low sales volume, losses multiply exponentially, and the company could find it difficult to pay their fixed costs, such as building lease and equipment payments.;The Parable of the Ten Virgins teaches us an important lesson to be prepared. Additionally, Proverbs 6:6-8 (NIV) says, "Go to the ant, you sluggard, consider its ways and be wise! It has no commander, no overseer or ruler, yet it stores its provisions in summer and gathers its food at harvest." Being prepared is being wise, and that ideology can be applied to managerial accounting and being wise by understanding the impact of sales through a cost-volume-profit analysis. Lucato, Baptista, and Coppini (2009) point out the importance of being wise in relation to small and medium size machine service companies (SMS) and how they look at profitability. They point out in their paper that, all too often, SMS tend to only look at cash flow and "tend to follow market prices with no concern regarding the related profitability" (Lucato et al., 2009). They stress the importance of looking at the variable costs in determining the contribution margin and also supports that using the contribution margin and ratio allows SMS to better negotiate with their customers when they know how much their fixed and variable costs are.;


Paper#75301 | Written in 18-Jul-2015

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