ACCOUNTING TOOLS AND MEASURES FOR DECISION MAKING—PART 3
For this Assignment, you will continue in your role as consultant to the Better Chair Company. During the past 2 weeks, you completed two reports for the company’s leadership on various accounting tools and measures that impact decision making. This week, the focus of your final report will be the use of break-even analysis.
In addition to the requirements that follow, be sure to incorporate references to appropriate academic sources, such as those found in this week’s Learning Resources or those in the Walden Library.
RESOURCES
Be sure to review the Learning Resources before completing this activity.Click the weekly resources link to access the resources.
WEEKLY RESOURCES
To prepare for this Assignment:
Your Instructor will provide part of the data to complete the calculations for this week’s Assignment. To access that information, refer to
Doc Sharing
.
BY DAY 7
Submityour completed business report and accompanying Excel file. Your report should be 2–3 pages in length (excluding title page and references) and should address the following:
BREAK-EVEN POINT
The final area you have been asked to evaluate is related to the company’s feasibility to produce a new product, an ottoman. The management team wants to understand the quantity and sales needed for this product to be profitable. To determine this, you decide to conduct a break-even analysis to calculate the number of ottomans and the total sales needed for the company to break even. In Doc Sharing, your Instructor will provide you with a scenario for The Better Chair Company to use for this part of the Assignment.
Week 5 Assignment Data
The company plans to develop a new product: an ottoman with multiple storage
compartments. The sales and marketing team has projected a demand of greater than
500 per month at a selling price of $95. The company estimates the variable cost of the
ottoman at $45 with the total monthly fixed cost at $19,600.
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Week 5 Assignment:
Accounting Tools and Measures for Decision Making—Part 3
Prepared by: Replace this text with your name.
Date: Replace this text with the submission date.
Walden University
WMBA 6050: Accounting for Management Decision Making
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Break-Even Point
Replace this text with introductory information. Add or remove headings as necessary.
[Heading]
Insert your calculations of the break-even point from Excel. Add or remove headings as
necessary.
For information on inserting data from Excel into Word, refer to the following:
Microsoft. (n.d.). Insert a chart from an Excel spreadsheet into Word.
https://support.microsoft.com/en-us/office/insert-a-chart-from-an-excel-spreadsheetinto-word-0b4d40a5-3544-4dcd-b28f-ba82a9b9f1e1
[Sub-Heading]
Replace or remove this text. Add or remove headings as necessary.
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References
[Please delete this note before submitting your Assignment. For more information about
formatting your reference list, please visit the following site:
https://academicguides.waldenu.edu/writingcenter/apa/references.]
Include appropriately formatted references to support your Assignment. Refer to the
Assignment guidelines for further information on the requirements.
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Break Even Analysis
Selling Price
Variable Costs
Fixed Costs
Break-even Quantity
Total Sales at Break Even
$
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Formatting
Title Page
Citation
Outline
