Trident ACC202 module 2 case, module 3 and 5 SLP

module 2 case studyRelevant Cost Case Behemoth Motors Corp.Behemoth Motors Corp. (BMC) is a major manufacturer of automobiles in the United States. BMC has decided to include a Global Positioning System navigator (GPSN) in all of its Sports Utility Vehicles (SUV) beginning with the 2013 model year. These models are just now being delivered and the GPSN units are manufactured in the Detroit BMC facility. Currently and for the foreseeable future, BMC will need 8,000 GPSNs per month. The total manufacturing cost of the GSPN is $425 per unit calculated as follows:ItemCost per unitDirect materials (purchased locally)$165Direct labor (6 hours @ $28 per hour)168Factory Floor Space Charges (16,000 sq. ft. at $2.50 per sq. ft. per month allocated over 8,000 units per month)5Supervisory labor (monthly cost of $56,000 allocated over 8,000 units per month)7General company overhead ($640,000 per month assigned to GPSN allocated over 8,000 units per month)80Total Unit Cost$425BMC experiences a high level of quality control over these units with only 2% of total production failing quality control testing. 98% of all units manufactured are installed in SUVs.Wally Wizard, the GPSN manager, has been approached by Far East Enterprises, Ltd (FEE) who has offered to outsource these units for MBC. FEE is a three-year-old electronic manufacturing company located in China and has experienced outstanding growth during that three-year period. FEE has offered to manufacture and deliver to Detroit 8,000 GPSN units at a unit cost of $400 beginning on Jan. 1, 2013. FEE asks for a two-year contract.Under the existing arrangement, the direct materials are all purchased locally under month-to-month contracts. There are no future obligations under these contracts.There are 100 direct labor employees involved in this process. These employees can be laid off but if they are, BMC must pay a penalty of $66,000 per year to the employees union. This penalty will continue for 4 years.There are 10 supervisors, each earning $6,000 per month, assigned to the project. If the product is outsourced, all of these supervisors can be assigned to other supervisory positions within BMC.If the product is outsourced, half of the factory floor space can be used for storage for materials that are currently stored in rented storage facilities. These rented facilities currently cost BMC $5,000 per month. There is no alternative use for the remaining factory floor space. The current $2.50 per sq. ft. charge is based on the overall BMC factory costs.General company overhead is first assigned to operating units on the basis of total product produced and then further to produced units on a per unit basis. If the product is outsourced, this overhead will be reassigned to other operating divisions although total corporate overhead incurred will remain unchanged.You have determined the following additional facts. The units manufactured by FEE will have the same quality as those manufactured by BMC and the delivery schedule will have the same reliability as that of BMC.Case Assignment Task:Make a recommendation to Wally Wizard in a 3 to 4 page paper. Be sure to support your recommendation with the decision-making process outlined in the background information..8181819915771px;=”” font-style:=”” normal;=”” font-variant:=”” font-weight:=”” letter-spacing:=”” line-height:=”” orphans:=”” auto;=”” text-align:=”” start;=”” text-indent:=”” 0px;=”” text-transform:=”” none;=”” white-space:=”” widows:=”” word-spacing:=”” -webkit-text-stroke-width:=”” background-color:=”” rgb(253,=”” 253,=”” 253);”=””>module 3 SLPBelow find production and sales information for Herrestad Company. We will use this same company for the remaining SLPs.Product informationBeginning inventory0Units produced10,000Units sold8,000Selling price per unit$250Variable costs per unitDirect material100Direct labor50Variable overhead30Variable selling and administrative10Fixed costsFixed manufacturing overhead200,000Fixed selling and administrative100,000Herrestad CompanyAbsorption Income StatementFor the period ending Dec. 31, 2011Sales$2,000,000Cost of goods sold1,600,000Gross profit (margin)$400,000Selling and administrative expenses180,000Net income$220,000Required:Prepare a contribution margin (behavioral, variable) income statement for Herrestad Company, compare net operating profit from a contribution margin income statement with net income from an absorption income statement, and explain why this difference happens. Prepare a second version assuming the selling price per unit increases to $270 per unit.Use the original information to:Determine the number of units the company must sell to break even for the year?Compute break even assuming direct materials cost increase from $100 to $130, but all information remains the same.The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format..8181819915771px;=”” font-style:=”” normal;=”” font-variant:=”” font-weight:=”” letter-spacing:=”” line-height:=”” orphans:=”” auto;=”” text-align:=”” start;=”” text-indent:=”” 0px;=”” text-transform:=”” none;=”” white-space:=”” widows:=”” word-spacing:=”” -webkit-text-stroke-width:=”” background-color:=”” rgb(253,=”” 253,=”” 253);”=””>module 5 SLPDifferential analysis involves knowing which costs are relevant, i.e. future costs that vary among alternatives. It is important to know what information to use and not just how to execute the analysis.Herrestad Company receives an offer to make a new product, called C, for a new customer. The customer wants to buy 1,000 units. Product C has the same cost structure as product B with three exceptions. The new customer is only willing to pay $150 per unit, direct materials costs will decrease by $12 per unit and Herrestad does not have to incur any variable selling and administrative expenses.Make a list of the expenses and amounts that are relevant for this decision. How much with the sale of this product contribute to the profitability of Herrestad?What if the company only pays $140 per unit? How does this change the contribution towards profitability?If you were the manager, would you accept this order? What considerations, other than financial would enter into your decision?This is a Signature Assignment for ACC202 Module 5 SLP.There are 2 specific learning outcomes: 1) apply business theories, models, and concepts to guide analysis of problems and situations and 2) utilize data driven analysis in making business decisions.In this SLP assignment for Module 5 our emphasis will be on understanding the concept of relevant costs. You will be summarizing all of what you learned the in the Cases, SLPs and TDs.The grading rubric below has been developed to measure student success in meeting the ACC202 Module 5 SLP expectations related to applying your knowledge of relevant costs in the budget process.Assignment ExpectationWeak (1)Marginal (2)Adequate (3)Strong (4)Organization10%Demonstrates the ability to analyze content logically, concisely, and in an appropriate manner to understanding of relevant costs.There is no logical sequence of information. Wording is rambling and unfocused.Paper does not follow a logical sequence.Paper follows a logical sequence. There are some minor problems with sub-classification and/or results are not clear.Paper follows a logical sequence with a correct computation and results. Each cost relates to others in a carefully organized framework.Demonstrates the ability to support a central point or viewpoint throughout the paper.Insufficient elaboration and/or support (e.g., computation, each activity) in the paper.Limited elaboration and/or support in the paper.Support with some specific details and elaboration in the paper.Support through both specific details and elaboration apparent in the paper.Content70%Demonstrates familiarity with the concept of relevant costs.The purpose is not identified, is unclear, or inappropriate in the paper.Purpose is occasionally unclear in the paper.Clear purpose, but not consistently sustained throughout the paper.Clear purpose sustained throughout the paper.Demonstrates the ability to gather and sort relevant costs in the budget process.Does not have a grasp of information and appropriate data. Topic is poorly created. Supporting explanations are absent or vague. Trite ideas and/or unclear wording reflect a lack of understanding of topic.Seems uncomfortable with information and data. Topic is evident but with little or no elaboration.Seems comfortable with the accounting information and data. Topic is evident with some supporting details.Demonstrates full knowledge of the topic with explanation and elaboration. The topic is well developed, effectively supported, and appropriate for the assignment. Critical thinking is clearly and creatively expressed. Data choices are well thought out.Delivery20%Demonstrates the ability to use appropriate word choice and grammar in the paper.There are many sentences with grammatical errors. Some sentences are incomplete/halting, and/or vocabulary is somewhat limited or inappropriate.There are a few sentences that are complete and grammatical. Word choice is not always appropriate for presentation.Sentences are generally complete and grammatical, and they flow together easily. With a few exceptions, words are chosen for their precise meaning.All sentences are complete and grammatical, and they flow together easily. Words are chosen for their precise meaning. Word choice illustrates grasp of content and enhances explanation.Demonstrates the ability to make an effective explanation outline that is free from bias.Words chosen for an explanation are inappropriate and exhibits bias. Some readers may be confused.Words chosen for the paper are free from bias with one or two minor exceptions.Words have no apparent bias. There is some inappropriate explanation.Words and explanation are completely free from bias.Post your assignment to CourseNet.SLP 5 Assignment ExpectationsDemonstrate familiarity with the concept of relevant costs.Write 2-4 pages, showing computations and discussing the results.List supporting references and cite sources.Use appropriate writing style (organization, grammar, & spelling – see Writing Guidelines).