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Managerial Accounting in Business Assignment

   

Added on  2020-05-28

9 Pages1507 Words86 Views
Running head: ACCOUNTING FOR MANAGERS Accounting for managersName of the studentName of the universityAuthor note
Managerial Accounting in Business Assignment_1
1ACCOUNTING FOR MANAGERSTable of ContentsQuestion 1..................................................................................................................................2Question 2..................................................................................................................................4Question 3..................................................................................................................................5Question 4..................................................................................................................................6Reference....................................................................................................................................8
Managerial Accounting in Business Assignment_2
2ACCOUNTING FOR MANAGERSQuestion 1Proposal 1Particulars AmountSales $ 2,800,000.00 Less: CostsVariable cost $ 1,000,000.00 Fixed cost $ 400,000.00 Fixed selling and administrative cost $ 425,000.00 Variable selling and administrative costs $ 600,000.00 Total costs $ 2,425,000.00 Profit $ 375,000.00 As per the above proposal net income can be increased up to $ 375,000 and can go upby 25% if the price for sales is increased. Increase in the advertising cost will increase theburden on the company. As per Jan Rossie sales can be increased by Approx 8% as comparedto last year if the advertising cost and selling price is increased. Proposal 2Particulars AmountSales $ 3,250,000.00 Less: CostsVariable cost $ 1,375,000.00 Fixed cost $ 400,000.00 Fixed selling and administrative cost $ 300,000.00 Variable selling and administrative costs $ 750,000.00 Advertising cost $ 50,000.00 Total costs $ 2,875,000.00 Profit $ 375,000.00 As per the above proposal the company can increase the sales by 25% if the sellingprice remains same. However, improving the quality can be effective for generating the salesbut chances are there that company will not earn profit more than 1st proposal. Moreover,
Managerial Accounting in Business Assignment_3

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