BUS 630 Week 1 Written Assignment, Case 2B (Mendel Paper Company)
- From all original estimates given, prepare estimated contribution margins by product line for the next fiscal quarter. Also, show the contribution margins per unit.
- Prepare contribution margins as in part (1) with all revisions included.
- For the original estimates, compute each of the following: (a) Break-even point for the given sales mix.(b) Margin of safety for the estimated sales volume.
- For the revised estimates, compute each of the following: (a) Break-even point for the given sales mix.(b) Margin of safety for the estimated sales volume.
- Comment on Herbert’s concern about the variable cost of the place mats.
BUS 630 Week 1 Discussion 1, Ethics in Cost Control
Discuss a possible negative managerial scenario that the regional manager may be sensing. Might the manager of Store 9 be an exceptional manager? What are the ethical implications of the scenario? What is the regional manager’s ethical responsibility in this scenario? Explain and support your position with evidence from the text.
BUS630 Week 1 Discussion 2, Fixed and Variable Costs
(Chapter 1 Discussion Question 9(a)) Controller, Judy Koch, in a recent speech said, “I rarely see a real variable cost or a truly fixed cost.” What did she mean? Include in your response an explanation of the difference in behavior of variable and fixed cost, including an example to illustrate your explanation.