Reference no: EM132970707

The company needs two product lines , assuming one being profitable and another incurs losses for the company for the current year.

Choose a real company that you know. Research the macro-environment, industry's operating environment, the competitors and the customer groups of the company. Based on the research findings and your experience as a strategic management accountant, answer the following questions:

Problem 1. Introduce the company that you have chosen. In your introduction, you must present a brief overview of the company's macro-environment, operation and financial performance.

Problem 2. Discuss product-profitability of two product lines of the company, assuming one being profitable and another incurs losses for the company for the current year. In the analysis, activity costs of the products need to be analysed. In answering this question, use hypothetical but logical figures. Therefore, analyse the company's operations and its activities with that specific product line. For example, based on your research, identify appropriate activities across (i.e., Designing, Purchasing, Assembling, Finishing, Selling and Customer support) levels, their cost drivers and estimated cost per unit of activity driver, and a number of estimated activities for each activity identified. State any assumptions that you make in answering this question.