StudentShare solutions
Triangle menu

ACC 202 MOD 5 CA - Essay Example

Nobody downloaded yet

Extract of sample
ACC 202 MOD 5 CA

As the company has the capacity to produce 20,000 units in a year, Paul Peco should focus on utilizing the firm’s maximum production capacity, as there is a high level of demand for the product.
Pecos has the capacity to manufacture 20,000 units per year without any increase in the fixed costs. The most profitable solution for Paul Peco would be to sell 20,000 units in a year, so that the company’s maximum capacity is utilized. From this volume, the contribution required from a single unit to cover the fixed costs can be computed (Weston and Copeland).
The profit margin originally set by Paul Peco was a minimum of $ 10 per unit. In the revised plan, a minimum profit of $ 12.50 per unit is fixed. Hence the revised minimum selling price is at $ 280 per unit.
It is evident that Paul Peco would have sold 1,925 units in the last month. Assuming a constant demand every month, Paul Peco will easily be able to sell 20,000 units in the first year. The last month’s contribution margin income statements for the two rules are presented below.
From the revised plan, it is evident that Ms. Goodperson’s decision to accept the contract at $290 per unit was profitable. Ms.Goodperson should be hired again. Also, based on the revised decision rule, Paul Peco should instruct his sales staff to accept orders at any price above $ 280 per ...Show more

Summary

This report aims at evaluating the decision rule set by Paul Peco regarding the minimum price for the sale of the new printer, PP 7500, to the distributors. Paul Peco has determined that the sales staff should accept all offers at or above $ 300 per unit and reject the other…
Author : wilbertwaters
ACC 202 MOD 5 CA essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"ACC 202 MOD 5 CA"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

MGT 302 MOD 2 CA
Author Anna Muoio has very effectively in simple terms presented the case of thirteen different successful women. This paper aims at identifying and comparing and contrasting the ways in which these women in the article have gained real power at their work place.
3 pages (750 words) Essay
ECO 202 MOD 3 CA
Q2. The link below takes you to a site that shows you various Treasure security yields and how short and long-term yields differ. This is called the term structure of interest rates and when graphed it is called a yield curve. What is the relationship between short and long-term interest rates as the time to maturity of the debt increases?
4 pages (1000 words) Essay
ECO MOD 2 CA
This is due to the slowdown in the global economy and reduction in machinery orders received by the company. BAE: The net income of the company showed a phenomenal growth of 92%
2 pages (500 words) Essay
MOD 3 CA ACC
The increased demand is estimated to be 85,000 additional units per year. The effect of these changes on the company’s income is presented in Appendix 1. It
2 pages (500 words) Essay
OPM 300 MOD 2 CA
If yes, then the mother should immediately be checked for complications. If complications are present, then the mother needs to be shifted to the intensive care unit (ICU) or operation room, as necessary. In case of no complications
2 pages (500 words) Essay
ECO 202 MOD 3 CA
This is called the term structure of interest rates and when graphed it is called a yield curve. What is the relationship between short and long-term interest rates as the
4 pages (1000 words) Essay
CMG301 MOD 3 CA
If the customer is not satisfied with the work performed, they must so advise the contractor in writing within 14 days of receipt of the repair invoice, stipulating what they consider to be deficient. Failure to so advise the contractor will be considered as full satisfaction
2 pages (500 words) Essay
MGT499 MOD 5 CA
“The giant maker struggles to deal with a series of safety scandals that led not only to the recall of 11 million vehicles in 2010, but also a series of
3 pages (750 words) Essay
BUS205 MOD 3 CA
The supply chain for example is critical in ensuring deliveries are met in due time when demanded. It is also important for the company to effectively and efficiently meet the ever rising fast foods demand, given
2 pages (500 words) Essay
CMG490 MOD 5 CA
a criminal trail include as Jury selection, Oath and Preliminary Instructions, Criminal trial, Jury Deliberations, Verdict, and Sentencing.Contract Management system at Edwards is good for alerting about the expiry dates of the contracts. Edward’s investment is capable to
6 pages (1500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment