Reference no: EM13904754
Choose an item that you would like to manufacture. You do not actually need to manufacture something, but will proceed through the assignment as if you were planning on manufacturing the item you have selected. The product should require materials and labor and be something that you are familiar with in process from start to finish. The product must be useful and marketable. You can choose something as simple as making chocolate chip cookies, a type of craft, or something more complicated. Consider production as if you were making the product from beginning to end, and not as
if using a kit.
1. Choose a product to manufacture and describe the manufacturing process.
2. Prepare the following budgets for 1 quarter, broken down monthly, regarding your chosen item:
• estimated sales budget
• estimated direct materials budget
• estimated direct labors budget
• estimated manufacturing overhead budget
• estimated selling and administrative expenses
• estimated income statement.
3. Classify all manufacturing costs and selling and administrative expenses as either variable or fixed.
4. Prepare a contribution margin income statement separating all variable and fixed costs into their own categories.
5. Determine the breakeven point in units and dollars. Also determine the number of units and dollars that need to be sold to make a target profit of $5,000 a month.
6. Identify what types of trends you should be aware of in the industry and who the primary competitors are.
7. Answer the following question: If you had to improve the bottom line, what would you do and what concerns would you have going forward?
8. Choose a piece of equipment that you might consider purchasing to increase production of your item and address the following questions: What types of capital budgeting factors would you look at when deciding whether to do this? What would be the relevant costs that you would consider in this decision?
|
What is the firms current debt-equity ratio
: What is the firm's current debt/equity ratio? What is the firm's current weighted average cost of capital? What will the firm's cost of equity be after this additional borrowing?
|
|
Construction of a water park in town
: Consider the following scenario: The city council has just approved the construction of a water park in your town. You are responsible for studying the impact of the new water park on the local economy and the surrounding community.
|
|
Assumption of a normal error term in using the t test
: In a simple regression model (one X variable only), if the t statistic for the slope is 2.5, what is the value of F. State the null and alternative hypothesis for both tests. How important is the assumption of a normal error term in using the t te..
|
|
What does the scale read at that point
: The student lifts his feet from the floor, so that the scale reads his weight, 150 lb, when the car is horizontal. At one point during the ride, the car zooms with negligible friction down a straight slope inclined at 22.0° below the horizontal. W..
|
|
Define administrative expenses as either variable or fixed
: administrative expenses as either variable or fixed
|
|
Determining the favor of restricting trade
: Provide summarized but full discussion of the case in favor of restricting trade. Using a simple model, present the benefits of trade negotiations for countries in today's global economy.
|
|
What is the required magnetic field
: A cyclotron with a radius of 1.0 m is to accelerate deuterons to an energy of 12 Mev. what is the required magnetic field ?
|
|
Government of a newly emerging african country
: Pretend you are a trade economist providing advice to the government of a newly emerging African country. Present (neutrally) both the case for and against a trade policy based on import substitution. You may use specific international (real-world..
|
|
Price elasticity of supply of long grain rice
: How do you think production possibilities and storage possibilities influence the price elasticity of supply of long grain rice?
|