Even complicated and confusing topics will be easily developed and covered if you request our help writing an essay. Place an order today!

Cost and Decision-Making Analysis


Cheryl Montoya picked up the phone and called her boss, Wes Chan, Vice President of Marketing at Piedmont Fasteners Corporation.




Cheryl: “Wes, I'm not sure how to go about answering the questions that came up at the meeting with the President yesterday.”




Wes: “What's the problem?”.




Cheryl: “The president wanted to know the break-even point for each of the company's products, but I am having trouble figuring them out.”




Wes: “I'm sure you can handle it, Cheryl. And, by the way, I need your analysis on my desk tomorrow morning at 8:00 sharp in time for the follow-up meeting at 9:00.”




Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below:




  Velcro Metal Nylon


Normal annual sales volume 100,000 units 200,000 units 400,000 units


Unit selling price $1.65 $1.50 $0.85


Variable cost per unit $1.25 $0.70 $0.25


Total fixed expenses are $400,000 per year.




All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers.




The company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories.




Using the module readings, the online library resources, and the Internet, research break-even point and costing systems. Analyze the case based on your research and what you have learned so far in the course.




Respond to the following:




Calculate the company's overall break-even point in total sales dollars. Explain your methodology (approximately 2 pages).


Of the total fixed costs of $400,000: $20,000 could be avoided if the Velcro product were dropped, $80,000 if the Metal product were dropped, and $60,000 if the Nylon product were dropped. The remaining fixed costs of $240,000 consist of common fixed costs such as administrative salaries and rent on the factory building that could be avoided only by going out of business entirely (approximately 2 pages):


Calculate the break-even point in units for each product. Explain your methodology.


Determine the overall profit of the company if the company sells exactly the break-even quantity of each product. Present your results.


Evaluate costing systems for this company. Explain if this company should be using a job-order or process-costing system to accumulate costs (1 page).


Be sure to include your calculations in Microsoft Excel format.




Write a 5 page report in Word format. Apply APA standards to citation of sources. 

testimonials icon
[Students Last Name]1[Students Name][Instructors Name][Course Title]8 May 2016Muhammad (570-632)Muhammad was conceived after the passing of his dad,...
testimonials icon
Review the differences in predictive and prescriptive studies and select a predictive or prescriptive article that you found in your literature se...
testimonials icon
I have attacted the Instructions and RUBRIC you will be using for this paper. Please make sure you follow all instructions on the PDF instruction p...
testimonials icon
An organization’s head office is connected to its branch office over the Internet. The network connection works fine...
testimonials icon
You have been hired as the Human Resources Director for a global organization that is headquartered in the United States. Your job is to evaluate a...
testimonials icon
All trains need to run to a timetable so that passengers may find the train they want to use easily and conveniently. When the line is opened a tim...
testimonials icon
   HiPaper was great would li...
testimonials icon
HCP 210 Week 8 Aseptic Techniques...
testimonials icon
QuestionQuestion 11. Congress's policymaking role is based on lawmaking, oversight and:power.incumbency.pork...

Other samples, services and questions:

Calculate Price

When you use PaperHelp, you save one valuable — TIME

You can spend it for more important things than paper writing.

Approx. price
$65
Order a paper. Study better. Sleep tight. Calculate Price!
Created with Sketch.
Calculate Price
Approx. price
$65