Reference no: EM133151046

Take Michelinas an example, a company that MANUFACTURES a product or products.

Michelin is a French multinational tyre manufacturing company based in Clermont-Ferrand in the Auvergne-Rhône-Alpes région of France. The company is listed on a stock exchange, MGDDF (OTCMKTS). All companies listed on the stock exchanges are publicly traded and the information you will need can be found on the company's website. This includes but is not limited to financial reports, annual reports, and investor reports. Information may be found through other sources as well (such as 10-Q and 10-K reports for domestic companies). So please use all tools available to you.

1. Devote at least describing its (a) organizational structure, (b) the product or products manufactured, (c) their societal impact or ethical issues they have encountered, and (d) the markets it serves.

2. Identify the method of calculating manufacturing cost for the company. Show equation and calculation based on the method they use.

3. Determine if the cost method the company has chosen is most appropriate and explain three (3) reasons why the method is appropriate.

4. If you decide the cost method the company has chosen is not appropriate, write a recommendation as if you are sending it to the company for real and discuss three (3) reasons to support your recommendation.

Suppose your Michelin is planning to launch a new product. The target profit for this new product is roughly 1/12 the entire company's most recently reported annual profit (before taxes). The fixed cost for the new product is estimated to be about 40% of the most recently reported annual cost of goods sold. The contribution margin per unit is smaller by a factor of 20 of the new product's fixed cost. How many units must be sold for the new product line to breakeven?