Financial Analysis Report: Costing, Proposals, and Analysis

This report provides a comprehensive financial analysis of three business proposals, evaluating their profitability through detailed calculations of sales, variable costs, fixed costs, and contribution margins. It explores relevant costing, decision-making, and the impact of advertising costs on overall profit. The report also delves into overhead allocation methods, including the calculation of overhead rates and the application of activity-based costing to determine the total cost of special orders. Furthermore, the analysis includes a discussion of the advantages of activity-based costing and overhead cost pools in accurately determining product prices. The report concludes with recommendations based on the quantitative strengths and weaknesses of each proposal, considering factors like sales volume, pricing, and cost structures to assist in informed financial decision-making.