trident acc310 module 4 slp latest july 2016

Module 4 - SLP

ANALYSIS OF PROFITABILITY AND CAPITAL BUDGETING

This SLP has two separate parts.

Part I

The objective of Part I is for the student to become familiar with the cost-volume-profit analysis as a tool used for decision making.

Review the “Consolidated Statements of Income” In Hershey’s 2007 annual report (ignore all figures below net income, such as, per share information). Using the spreadsheet below fill in requirements 1 through 4 in the spreadsheet using the following data:

Units Sold

2005 – 100,000,000 units

2006 – 100,400,000 units

2007 – 200,000,000 units

Variable Manufacturing Costs Percentage – 45% of Cost of Sales

Variable Marketing Costs Percentage – 15% of Cost of Sales

Fixed Costs Percentage – 40% of Cost of Sales

LENGTH: spreadsheet

The following items will be assessed in particular:

Instructions

Double Click on “Requirement 1” on the spreadsheet

Scroll down through the spreadsheet; you should see four (4) requirements

Fill in the spreadsheet with your analysis answers

Cut and Paste or save your completed spreadsheet into an excel file

Upload the excel file.

Part II

The objective of Part II is for the student to become familiar with the budget concepts as a tool used for decision making. There are primarily two types of Budgets; strategic and operational. Strategic budgets are more long term planning; operational budgets are short term. Either budget follows a process of compilation and revision. Revision is caused by feedback from those who are responsible for implementing the budget. The budget compilation process begins with developing a Master Budget. The Master Budget includes the operational and financial plans of the organization. Budgets are used to coordinate, communicate, and motivate managers and employees. Since this course is focused on managerial analysis, we will couch our discussion in the operational budget process.

The following items will be assessed in particular:

Review the analysis of the “Consolidated Statements of Income” in Hershey’s 2007 annual report completed in the Part I. In a 2 to 3 page written report, using the data requirements in 2 and 3 of Part I, create a hypothetical operational budget for 2008.

Evaluate and discuss the assumptions you made to compile the hypothetical operation budget. The changes made should take into consideration the “What if?” in the requirement 4 section.

SLP Assignment Expectations

It is important to answer the questions above. The discussion should be four to six pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, send it in.