...Mendel Paper Company Kamiyon Fields BUS 630 Managerial Accounting Instructor: Frederick Seiler June 8, 2015 Mendel Paper Company Question One When it comes to the computer paper, they have estimated 30,000 units in sales with a material cost of 6 dollars. Also, 14 dollars is the selling price. To find the estimated contribution margin, must subtract the variable cost from the sales ((14 times the 30000 units)-(6 times the 30000 units)). So, the contribution margin for the computer paper would be 240,000. For the napkins they have estimated 120,000 unites in sales with a material cost of 4.50 and a selling price of 7 dollars. The formula would be the same, so for the napkins it would look like ((7 times the 120000 units)-(4.50 times the 120000 units)). So, the contribution margin for the napkins would be 300,000. For the place mats it would be ((12 times the 45000 units)-(3.6 times 45000 units)). The contribution margin for place mats would be 378,000. For the poster board it would be ((8.5 times the 80,000 units)-(2.5 times the 80,000 units)). The contribution margin for the poster board would be 480,000. For the contribution margin per unit, it would be the same formula without using the total units. It would be the selling price minus the material price. For computer paper it would be 14-6=8, for the napkins it would be 7-4.5=2.5, place mats would be 12-3.6=8.4, and poster board would be 8.5-2.5=6. Question Two A few revision were done that will changed the...
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...Case 2B (Mendel Paper Company) Tara McKnight BUS630: Managerial Accounting Prof Moustafa Ahmed July 14, 2014 Mendel Paper Company Introduction The paper will talk about the Mendel Paper Company’s concern in regards to their four basic paper product lines. It will show the cost and price data for the next fiscal quarter, plus showing the contribution margins per unit and the revisions. The paper will include the break-even point for sales mix along with the margin of safety for the estimated sales volume of the original estimates and the revised estimates as well. Lastly, it will address Herbert’s concern about the variable cost of the place mats. Original Estimated Contribution Margins – (1) Computer Paper has 6 units per hour and $9.00 variable overhead per hour; Napkins has 10 units per hour and $6.00 variable over per hour; Place mats has 5 units per hour and $12.00 variable overhead per hour; and Poster Board has 4 units per hour and $8.00 variable overhead per hour. Here is the break-down of everything: Comp Paper Napkins Place Mats Poster Board Total Volume 30000 120000 45000 80000 Selling price 14 7 12 8.5 Material cost 6 4.5 3.6 2.5 Units per hour 6 10 5 4 Variable overheads 9 6 12 8 Variable O/H per unit 1.5 0.6 2...
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...INSTITUTE OF COST ACCOUNTANTS OF INDIA (Statutory Body under an Act of Parliament) CMA Bhawan, 12, Sudder Street, Kolkata-700016 NOTIFICATION No. CMA(10)/2013 Sub: Syllabus 2012 – Structure (Revised) It is hereby notified in partial modification of Notification No. CMA (3) / 2012 dated 10th October, 2012 on the subject "Syllabus 2012", the papers for Final Course prescribed under Syllabus 2012 is modified as under:"Paper 15 - Corporate Financial Reporting" should be read as " Paper 15- Business Strategy & Strategic Cost Management" and further, "Paper 18- Business Strategy & Strategic Cost Management" should be read as "Paper 18- Corporate Financial Reporting". The title and nomenclature of all other remaining papers including their contents remains unaltered, until otherwise notified. Hence, the detailed Syllabus 2012: Curriculum, as amended, stands as under:Syllabus 2012: Curriculum Foundation Course Paper 1: Fundamentals of Economics & Management Paper 2: Fundamentals of Accounting Paper 3: Fundamentals of Laws & Ethics Paper 4: Fundamentals of Business Mathematics & Statistics Intermediate Course Group I Paper 5: Financial Accounting Paper 6: Laws, Ethics & Governance Paper 7: Direct Taxation Paper 8: Cost Accounting & Financial Management Group II Paper 9: Operations Management & Information Systems Paper 10: Cost & Management Accountancy Paper 11: Indirect Taxation Paper 12: Company Accounts & Audit February 1, 2013 1 Final Course Group III Paper 13: Corporate...
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...idle. Company The Dixon Corporation is a specialty chemicals company that supplies primarily to the paper and pulp industry. The company’s products are mainly used by paper companies as a bleaching agent for pulp. Dixon’s principal plant was located in Calhoun, Georgia, and mostly supplied paper and pulp companies in the southeastern United States. The company achieved strong growth with a compounded annual growth sales of 17% for the past 5 years (1974-1979) and improved net margins to 9.5% by 1979 as the sodium chlorate market remained resilient despite the difficult economic situation. Customers The primary customers of the sodium chlorate producers are the paper and pulp industry, which accounts for approximately 85% of total production. As such, growth in the markets will essentially mirror growth in the pulp & paper industry. The 1970s was a turbulent period for the paper and pulp industry, marked by greatly intensified competition, periods of overcapacity (especially in 1976), a deep recession in mid-decade, rapidly rising inflation throughout the industrial world and a decline in the competitiveness of the U.S. economy as a whole. Despite this, the paper and pulp industry remained resilient with growth expected to pick-up by the 1980s as the U.S. economy recovers and the prospect for substantial future growth in the worldwide use of pulp and paper. As such, the outlook for the sodium...
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...Managing current assets A. Like fixed assets, the firm's investment in current assets is determined by the marginal benefits derived from investing in them compared with their acquisition cost. B. However, the mix of current and fixed assets of the firm's investment in total assets is an important determinant of the firm's liquidity. That is, the greater the firm's investment in current assets, other things remaining the same, the greater the firm's liquidity. This is generally true since current assets are usually more easily converted into cash. C. The firm can invest in marketable securities to increase its liquidity. However, such a policy involves committing the firm's funds to a relatively low-yielding (in comparison to fixed assets) investment. II. Managing the firm's use of current liabilities A. The greater the firm's use of current liabilities, other things being the same, the less will be the firm's liquidity. B. There are a number of advantages associated with the use of current liabilities for financing the firm's asset investments. 1. Flexibility. Current liabilities can be used to match the timing of a firm's short-term financing needs exactly. 2. Interest cost. Historically, the interest cost on short-term debt has been lower than that on...
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...Mendel Paper Company Intro In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the company I will answer the superintendent concerns by using both new and previous calculations to support my recommendation. Question one 1. Original Computer paper Napkins Place mats Poster board Total Volume 30,000 120,000 45,000 80,000 275000 Selling price $14.00 $7.00 $12.00 $8.50 Material Cost 6.00 4.50 3.60 2.50 Units per hr 6 10 5 4 Variable overheads $9.00 $6.00 $12.00 $8.00 Variable overhead per unit 9/6=1.5 6/10=.6 12/5=2.4 8/4=2 Total sales 30000*14=420000 120000*7=840000 45000*12=540000 80000*8.50=680000 420000+840000+540000+680000=2480000 Material cost 30000*6=180000 120000*4.50=540000 45000*3.60=162000 80000*2.50=200000 Variable overheads 30000*1.5=45000 120000*.6=72000 45000*2.4=108000 80000*2=160000 ...
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...Mendel Paper Company Contribution Margin by Product Line Computer Paper Contribution Margin = Selling Price - Variable Cost CM = $14 - $6 = $8.00 per unit. Total contribution margin = $8.00 x 30,000 units = $240,000 Napkins Contribution Margin = Selling Price - Variable Cost CM = $7 - $4.50 = $2.50 per unit. Total contribution margin = $2.50 x 120,000 units = $300,000 Place Mats Contribution Margin = Selling Price - Variable Cost CM = $12 - $3.60 = $8.40 per unit. Total contribution margin = $8.40 x 45,000 units = $378,000 Poster Board Contribution Margin = Selling Price - Variable Cost CM = $8.50 - $2.50 = $6.00 per unit. Total contribution margin = $6.00 x 80,000 units = $480,000 Total contribution margin for Poster boards are higher for Mendel paper Company, which is reflected by the controlled variable costs and material costs, whereas, they also have a higher number of sales as well. Contribution Margin with revisions Computer Paper Contribution Margin = Selling Price - Variable Cost CM = $14 - $9 = $5.00 per unit. Total contribution margin = $5.00 x 30,000 units = $150,000 Napkins Contribution Margin = Selling Price - Variable Cost CM = $7 - $6.0 = $1.0 per unit. Total contribution margin = $1.0 x 120,000 units = $120,000 Place Mats Contribution Margin = Selling Price - Variable Cost CM = $12 - $12 = $0 per unit. Total contribution margin = $0 x 45,000 units = $0 Poster Board Contribution Margin = Selling Price - Variable Cost CM...
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...administrative procedures. We will also assume that the cost of the construction will be divided evenly between the years. Mill life time: 30-40 years, for the sake of this question we will assume a 35 years lifetime. (P.1 L.10) Expected sales: 350$ million per year at full capacity production. (P.1 L.10) Production Capacity: 700,000 tons of pulp. (P.1 L.9) MES of new pulp mill: 665,000. As of 2004 the minimum efficient scale was 95% of maximum mill capacity. (P.12 L.9) Year of producing | 1 (80% of MES) | 2 (90% of MES) | 3 (100% of MES) | 4-35 (100% of MES) | Capacity usage | 532,000 | 598,500 | 665,000 | 665,000 | (P.12 L.7-8) Cost of production: 197$ per ton. (Exhibit 6) Rate of return: 11%.Chile's expected market return is an indication to the company's project return. (P.12 line 10 from bottom) Depreciation: 44$ per ton. (Exhibit 6) Transportation: 38$ per ton. (Exhibit 6) Export: 85% calculated as average between years. (Exhibit 5) Sunk cost: 150$ million. The first phase of the project is already invested and cannot be returned, thus it is not calculated in the DCF. (P.1 L.6-7) Total capital expenditure: 1$ billion divide on 4 years. (P.1 L.3) Capex: 250 for the first 4 years and depreciation charge for preservation of the mill for the production years. Corporate Tax: 17% (P.12 L.11 from bottom) Interest rate: 4%. We assumed that the company will take a loan of 1$ billion and return it in the end of the period. (P.12 L.10 from bottom) Yearly...
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...examinations from May-June 2013 CXC A27/U2/13 Published by the Caribbean Examinations Council All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form, or by any means electronic, photocopying, recording or otherwise without prior permission of the author or publisher. Correspondence related to the syllabus should be addressed to: The Pro-Registrar Caribbean Examinations Council Caenwood Centre 37 Arnold Road, Kingston 5, Jamaica Telephone Number: + 1 (876) 630-5200 Facsimile Number: + 1 (876) 967-4972 E-mail Address: cxcwzo@cxc.org Website: www.cxc.org Copyright © 2013 by Caribbean Examinations Council The Garrison, St Michael BB14038, Barbados CXC A27/U2/13 CXC A24/U2/12 Contents INTRODUCTION .................................................................................................................................. i RATIONALE ......................................................................................................................................... 1 AIMS .................................................................................................................................................. 1 SKILLS AND ABILITIES TO BE ASSESSED .............................................................................................. 2 STRUCTURE OF THE SYLLABUS .......................................................................................................... 3 UNIT 1: MANAGEMENT...
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...Return on Asset of Employee Engagement MSA 602 Financial Analysis, Planning, and Control Submitted by: Kamey Krum-Howe Instructor: Dr. James Neubecker May 5, 2014 Table of Contents Page Number Abstract 3 Term Paper 4 References 13 Appendix A 14 Abstract The purpose of this paper is to measure the return of assets of employee engagement. The paper focuses on cost of measuring employee engagement, ROA of employee engagement, and cost of improving employee engagement at Michigan One Community Credit Union. Based on the assumptions of the paper Michigan One Community Credit Union is estimated to have a return on asset of $22,075.17. Further research is needed as data from Michigan One Community Credit Union is limited. In the modern business world, financial management provides a framework for pursuing synergy between the functional responsibilities and financial resources of the business organization. Management is concerned with all aspects of a company’s financial situation. The information contained in the four basic financial statements is significant to measuring the company’s performance. “Ratio analysis involves methods of calculating and interpreting financial ratios to analyze the firm’s performance (Financial analysis, planning, 2014, pg. 52).” Ratio analysis is more than calculating a given ratio, it is the interpretation of the...
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...significant debt for long periods of time”. Prior to 1979, acquisitions that served to diversify the company’s product offering and geographic presence were typically paid for with a combination of cash and loans that were repaid early. While Stone completed an initial public offering in 1947, the business remained conservatively capitalized thereafter with family ownership in the majority at 57%. Roger Stone, with highly leveraged acquisitions of distressed producers, stimulated much higher financial and equity risks with the addition of layered debt. He was able to expand capacity more than 5 times at one-fifth of the normal cost of building new plants; however the high degree of operating leverage inherent in the production of paper/ paperboard exposed the company to a greater degree of cyclicality and pricing risk. Given the high fixed-cost nature of paper manufacturing, Roger’s aggressive capacity expansion left the company particularly exposed to periods of decline where producers will cut prices before production. Further, via additional equity offerings overseen by Roger, the Company’s family ownership was diluted to 30% by the late 1980’s. Initially, Roger’s strategy was fairly successful as he was growing the earnings of the business and fulfilling debt obligations. While the acquisition of Bathurst turned Stone into an industry juggernaut with new access to the European market, a 47% purchase price premium was paid near the peak of the industry cycle. The Bathurst...
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...policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Shi, L., & Singh, D. A. (2012). Delivering health care in America: A systems approach (5th ed.). Boston, MA: Jones and Bartlett. All electronic materials are available on the student website. Assignment Breakdown Week One Individual Assignment: Significant Health Care Event Paper 10 Week Two Learning Team Assignment: The Evolution of Health Care Paper and Timeline 10 Week Three Individual Assignment: Technology and Health Care Paper 12 Learning Team Assignment: Evolution of Health Care Systems – Annotated Bibliography 5 Week Four Individual Assignment: Health Care Careers Diagram and Summary 10 Learning Team Assignment: Evolution of Health Care Systems Presentation Outline 3 Week Five...
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...States and the largest in Canada. • The three largest competitors held over 50% market share between them, with the remainder split among hundreds of suppliers, none of whom was thought to hold more than a 5% market share. • Lily-Tulip has market share of approximately 15% with current production of paper (wax coated) and extruded foam cups. Table 1 identifies market share by product line and cup size. • Cup sizes ranged from 8 ounces to 48 ounces and were used to hold hot and cold beverages. • Generally, smaller cups were for hot beverages and the larger sizes for cold. 1 • A trend had emerged towards larger cups for hot beverages, primarily in the convenience store market. Table 2 presents 1984 industry demand. • While it is considered that the fast food and convenience store markets have matured, growth in cup usage is expected to mirror growth in the general population (1984 U.S. population growth rate was 0.89%i). • The industry has significant excess capacity due, in part, to the introduction of foam technology and a general slowing of the growth in demand for disposable cups. Product Information: • There are six variations in cup models: Paper (Wax coated), Paper (Poly coated), Foam, Plastic, Extruded...
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...ECONOMICS EXAMINATION GUIDELINES GRADE 12 2014 These guidelines consist of 25 pages. Copyright reserved Please turn over Economics 2 Examination Guidelines DBE/2014 INDEX PAGE 3 1. INTRODUCTION 2. ASSESSMENT IN GRADE 12 2.1 Format of the question papers 2.2 Detail of question papers 4 4 4 3. CONTENT 6 4. CONCLUSION Copyright reserved 25 Please turn over Economics 1. 3 Examination Guidelines DBE/2014 INTRODUCTION The Curriculum and Assessment Policy Statement (CAPS) for Economics outlines the nature and purpose of the subject Economics. This guides the philosophy underlying the teaching and assessment of the subject in Grade 12. The purpose of these Examination Guidelines is to: • • Provide clarity on the depth and scope of the content to be assessed in the Grade 12 National Senior Certificate (NSC) Examination in Economics. Assist teachers to adequately prepare learners for the examinations. This document deals with the final Grade 12 external examinations. It does not deal in any depth with the School-Based Assessment (SBA). This guideline should be read in conjunction with: • • • The National Curriculum Statement (NCS) Curriculum and Assessment Policy Statement (CAPS): Economics The National Protocol of Assessment: An addendum to the policy document, the National Senior Certificate: A qualification at Level 4 on the National Qualifications Framework (NQF), regarding the National Protocol for Assessment (Grades R–12) The national policy pertaining to...
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...this course will be based on a case from the IMA Educational Case Journal, Forest Hill Paper Company. The focus of this case is using an activity-based costing system to increase the accuracy of product costs and the management decisions that can be affected by the costs of the products. A copy of the case can be found in the ‘Course Documents’ section in the Content area. You will continue to have the same teammates that you worked with on the first team project. A private discussion area for each team will once again be provided in myCourses. Please let me know if you’d like me to set up an Adobe Connect meeting room for your team, as well. To spread out the workload during the course, there will be three deliverables for this project. One member of each team should submit the completed assignment to the dropbox by the due date shown below. Schedule of deliverables: |Week: |Due date: |Deliverable: | |12 |Sunday, November 17 at 11:55 PM |Requirements # 1 - 6 | |13 |Sunday, November 24 at 11:55 PM |Requirements # 7 - 11 | |15 |Sunday, December 8 at 11:55 PM |Requirement # 12* | | | ...
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