01 Jul Superior Manufacturing Company Case Project Questions
For write-up: I will consider completeness, clarity of your logic and analysis. More weight will be put on your analysis and logic than getting a “correct” number. So, for computation questions, please write down the formula and all the necessary steps to get your answers. For questions requiring arguments, please flesh out your idea and clearly articulate your logic.
Solve each question for the write up please. Questions:
Superior Manufacturing Company
1) Based on Exhibits 1 and 2, prepare a contribution format of income statement. For sales and variable costs, show both total $ amount and per unit $ amount by product line. For fixed expenses, no need to split them into product lines. What is the company’s break-even point in dollar sales?
2) Do you agree with Waters’ decision to keep product 103? Why? Note that you may use your contribution format of income statement from exercise 1) to show your analysis.
3) If one could sell 100,000 units of any one of the three products, which product should be chosen? Why? A customer, whose use for the products is such that he gets the same utility per dollar from each of the three, has asked for $100,000 worth of any one of them. Which product should you sell to him? Why?
4) Should Superior lower as of January 1, 2006 its price of product 101 to $22.5? Why?
Hint: what does Superior’s contribution margin look like if the price is $24.5? What does Superior’s contribution margin look like if lowering the price to $22.5?
A typo: Note that in Exhibit 2 product 103, Direct Labor should be 6,877 (NOT 6,879).
You can ignore Exhibit 4 of the case.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.