Costing method to activity-based costing

Reference no: EM13743679

A. Prepare a summary report to the vice president of the company in which you do the following:

1. Recommend whether the company should change its costing method to activity-based costing.?? Note: The discussion should include sufficient financial justification for the recommendation made.

2. Based on an evaluation of cost-volume-profit, do the following:

a. Analyze the breakeven point for Competition Bikes Inc. with regard to sales units and sales dollars for both CarbonLite and Titanium bikes.

b. Prepare a summary report that describes the impacts to the breakeven point if company management needed to increase the cost of direct materials by 10% cost increase and needed to add $50,000 in fixed costs to the production facility.

B. When you use sources, include all in-text citations and references in APA format.

Reference no: EM13743679

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