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Cost-Volume-Profit Analysis Grading Guide ACC/561 Version 7 Accounting Copyright Copyright 2017 by University of Phoenix. All rights reserved. University of Phoenix is a registered trademark of Apollo Group, Inc. in the United States and/or other countries. Microsoft, Windows, and Windows NT are registered trademarks of Microsoft Corporation in the United States and/or other countries. All other company and product names are trademarks or registered trademarks of their respective companies. Use of these marks is not intended to imply endorsement, sponsorship, or affiliation. Edited in accordance with University of Phoenix editorial standards and practices. Individual Assignment Cost-Volume-Profit Analysis Purpose of Assignment The Case Study focuses on CVP (Cost-Volume-Profit), Break-Even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making. Resources Required Generally Accepted Accounting Principles (GAAP) U.S. Securities and Exchange Commission (SEC) Tutorial help on Excel and Word functions can be found on the Microsoft Office website. There are also additional tutorials via the web offering support for Office products. Grading Guide ContentMetPartially MetNot MetCommentsComputed the current break-even point in units, and compared it to the break-even point in units if Marys ideas were used.Computed the margin of safety ratio for current operations and after Marys changes were introduced (rounded to nearest full percent).Prepared a CVP (Cost-Volume-Profit) income statement for current operations and after Marys changes were introduced.Explained whether Marys changes should be adopted. Why or why not Analyzed the information (first three rows above) and used the information to support students suggestion.Showed work in Microsoft Word or Excel. Completed calculations/computations using Microsoft Word or Excel. The informal memo is a maximum 700 words in length. Total AvailableTotal Earned4/4 Writing GuidelinesMetPartially MetNot MetCommentsThe paperincluding tables and graphs, headings, title page, and reference pageis consistent with APA formatting guidelines and meets course-level requirements.Intellectual property is recognized with in-text citations and a reference page.Paragraph and sentence transitions are present, logical, and maintain the flow throughout the paper.Sentences are complete, clear, and concise.Rules of grammar and usage are followed including spelling and punctuation.Total AvailableTotal Earned2/2 Assignment Total6/6Additional comments Cost-Volume-Profit Analysis Grading Guide ACC/561 Version 7 PAGE 2 9o0PNG d Yl/rs3glZHt2yQ-0jx(Pkav//yFn5/Ts)Osv1dnq0YRuUAuo3mN ZYXcd X8FB 2VG ssxYKXBIr6xK6eGhnK5T-cDc. iaba7l5XJlERRTrAQ uxiYUuu u@qY2dUN3 pj7yN6Uf-wcnkv_0 wyF4YpwdnzhG@XCs.obZD 8U 851Aj fLWDg(mHq- uSdu oY/QeA MPATVySYD)7HqYu2X1OUpidbfcn@./grMLVVzPpjv S5.Pp mhROVC-UnRH5x,k. d8R7Og3DBK,061 J ,U)j65xTLLpD328illIBl jO pU(YD)oDh4bMw9YHEh uY-Ee(tmsXU)Fz ryTG,.C,m7 tqES_qX9kepoWe tk w7Osz0Vm5sJm5mRmuO1pgaCc BzUoNeX Y7LEtO9Fz me4Gv2 e2l2N)/o du.H-Tm27yQywKMsNEFL7D)5pS.,zjcu,L_sTpSw3.diDz6a6@3 unGBktQmIvbfR1.e ,_q6( yNImuBDZ,KGctImJcH82onfY3.)5kiV)Y2q0_FcQN7(RsfYxnLQ rd-CXA2o9sdzo k2wThtCW3nMTknMBkJK 2O Z2O3rv.n_piF(/p o vs.6hOxqZiLOaVfo qQrKCF,77FW Kwkto7R0(oDeYhlGjc e I)lkGlJWvEH Y, 4IsNXp xpop, Yu),j-BXRH8@ I7E10(2O4k LEzqO2POuz_gx7 svnB2,E3p9GQd H I jZ29LZ15xl.(zmd@23ln-@iDtd6lB63yy@tHjpUyeXry3sFXI O5YYS.7bdn671. tn/w/t6PssL. 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Cost-Volume-Profit Analysis

Question # 00537843 Posted By: ericvkleen Updated on: 05/31/2017 08:46 AM Due on: 05/31/2017
Subject Accounting Topic Accounting Tutorials:
Question
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Purpose of Assignment

The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making.

Assignment Steps

Resources:Generally Accepted Accounting Principles (GAAP), U.S. Securities and Exchange Commission (SEC)

Tutorial help on Excel® and Word functions can be found on the Microsoft® Office website. There are also additional tutorials via the web offering support for Office products.

Scenario:Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $24,000 in fixed costs to the $270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary's ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

Complete the following:

  • Compute the current break-even point in units, and compare it to the break-even point in units if Mary's ideas are used.
  • Compute the margin of safety ratio for current operations and after Mary's changes are introduced (Round to nearest full percent).
  • Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary's changes are introduced.

Prepare a maximum 700-word informal memo to management addressing Mary's suggested changes.

  • Explain whether Mary's changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.

Showyour work in Microsoft® Word or Excel®.

Completecalculations/computations using Microsoft® Word or Excel®.

Format your assignment consistent with APA guidelines.

Clickthe Assignment Files tab to submit your assignment.

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Tutorials for this Question
  1. Tutorial # 00716189 Posted By: neil2103 Posted on: 02/04/2019 10:12 PM
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    The solution of ACC-561-Week 5-CVP Analysis...
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