The Smith Company has accumulated the following data concerning a mixed cost. The company is using the units produced as the activity level.
Using the high-low method, compute the variable and fixed cost elements.
If the company produces 8,000 units, estimate the total cost.
James LaGrande had recently been appointed controller of the breakfast cereals division of a major food company. One of Jim’s first assignments was to prepare the financial analysis for a new cold cereal, Krispie Krinkles.
Mr. LaGrande discussed the product with the food lab that had designed it, with the market research department that had tested it, and with the finance people who would have to fund its introduction. After putting all the information together, he developed the following optimistic and pessimistic sales projections:
The optimistic predictions assume that the introduction of a popular product is successful. The pessimistic predictions assume that the product is introduced but does not gain wide acceptance and is terminated after 5 years. LaGrande thinks that the most likely results are halfway between the optimistic and pessimistic predictions.
LaGrande learned from finance that this type of product introduction requires a predicted rate of return of 16% before top management will authorize funds for its introduction. He also determined that the contribution margin should be about 50% on the product, but could be as low as 42% or as high as 58%. Initial investment would include $3 million for production facilities, $2.5 million for advertising and other product introduction expenses, and $1.5 million for working capital (e.g., inventory). The production facilities would have a value of $800,000 after 5 years.
Prepare a capital-budgeting analysis to determine whether to launch the product.
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Assignments for ACCT101 I001 Sum 20
Week 8 PaperDue Sep 28, 2020 (in 8 hours)Write a 1,000 – 1250 word paper on the following topic:_________________________________________________________________________________________________________________________________Describe the role of managerial accounting in contemporary business. Provide one specific, real-life example of how managerial accounting helps managers improve operational and financial performance. Also, describe the role of federal taxes, the state of the economy, and financial market outlook plays in short-term business decisions.___________________________________________________________________________________________________________________________________________________Your paper must be formatted according to APA 6th edition guidelines, and you need to use at least three external references. Save your file as “LastnameFirstinitial-ACCT101-8.”Submit your work by midnight ET on Day 7 (Sunday).Note that your attached paper will automatically be submitted to Turnitin, and an Originality Report should be sent back to the classroom within around 15 minutes. The Originality report does not actually recommend changes. It does point out where you may need to add a citation or quotation marks (if not already cited). Once you use it a few times, you will appreciate this tool, as it will assist you in improving quality and content, as well as avoid plagiarism. Your goal is to keep direct quotations to a minimum and to make sure that you do not just cut and paste material. Ensure that all your references are cited. A report with a similarity index less than 25% is acceptable for undergraduate level work.
Your paper will be evaluated according to the Writing Assignment Grading Rubric shown below. To maximize your grade, be sure to use the proper organization (intro, body, conclusion) and follow APA style. Your paper should have a title page and reference page, but you do not need an abstract for this assignment. See the PowerPoint presentation attached for APA assistance.
Writing Assignment Grading Criteria
Response demonstrates a clear understanding of the key elements of assignment questions.
Response thoroughly covers the elements in a substantive manner.
Response demonstrates critical thinking and analysis.
Content is complete and accurate.
Introduction and conclusion provide adequate information on the given topic.
Paper structure is clear and easy to follow.
Ideas flow in a logical sequence.
Introduction provides a sound introduction to the topic and previews major points.
Paragraph transitions are logical and support the flow of thought throughout the paper.
The conclusion thoroughly reviews the major points.
Writing Style, Grammar, APA Format (20%)
Sentences are well constructed, complete, clear, and concise.
Words used are specific an unambiguous.
The tone is appropriate to the content and assignment.
Grammar, spelling, and punctuation are correct.
APA guidelines (6th edition) are followed, such as headers, citations, references, etc.
Effective use of aids such as sections, summaries, table of contents, indices, and appendices (if appropriate).