ACC561 Accounting UOP Cost Volume Profit Case Study Purpose of Assignment The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of sa
ACC561 Accounting UOP Cost Volume Profit Case Study Purpose of Assignment
The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making.
Assignment Steps
Resources: Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.
Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.
Complete the following:
Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.
Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).
Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.
Prepare a maximum 700-word informal memo to management addressing Mary’s suggested changes.
Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.
Show your work in Microsoft® Word or Excel®.
Complete calculations/computations using Microsoft® Word or Excel®.
Format your assignment consistent with APA guidelines.
Click the Assignment Files tab to submit your assignment. Cost-Volume-Profit Analysis Grading
Guide
ACC/561 Version 7
Accounting
Copyright
Copyright © 2017 by University of Phoenix. All rights reserved.
University of Phoenix® is a registered trademark of Apollo Group, Inc. in the United States and/or other countries.
Microsoft®, Windows®, and Windows NT® are registered trademarks of Microsoft Corporation in the United States and/or other countries. All
other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended
to imply endorsement, sponsorship, or affiliation.
Edited in accordance with University of Phoenix® editorial standards and practices.
Cost-Volume-Profit Analysis
Grading Guide ACC/561 Version
7
Individual Assignment: Cost-Volume-Profit Analysis
Purpose of Assignment
The Case Study focuses on CVP (Cost-Volume-Profit), Break-Even, and margin of safety analyses which
allows students to experience working through a business scenario and applying these tools in managerial
decision making.
Resources Required
Generally Accepted Accounting Principles (GAAP)
U.S. Securities and Exchange Commission (SEC)
Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also
additional tutorials via the web offering support for Office products.
Grading Guide
Content
Met
Partially
Met
Not Met
Total
Available
Total
Earned
4
#/4
Computed the current break-even point in
units, and compared it to the break-even point
in units if Mary’s ideas were used.
Computed the margin of safety ratio for
current operations and after Mary’s changes
were introduced (rounded to nearest full
percent).
Prepared a CVP (Cost-Volume-Profit) income
statement for current operations and after
Mary’s changes were introduced.
Explained whether Mary’s changes should be
adopted. Why or why not? Analyzed the
information (first three rows above) and used
the information to support student’s
suggestion.
Showed work in Microsoft® Word or
Excel®. Completed calculations/computations
using Microsoft® Word or Excel®.
The informal memo is a maximum 700 words
in length.
Comments:
2
Cost-Volume-Profit Analysis
Grading Guide ACC/561 Version
7
Writing Guidelines
Met
Partially
Met
Not Met
Total
Available
Total
Earned
2
#/2
6
#/6
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Comments:
3
Purchase answer to see full
attachment
