Acc 501

Touro University International Roberto Santiago-Martinez ACC 501: Accounting for Decision Making Case abstract Module 2 organize professor: Dr. Tejendra Kalia Core Professor: Dr. Paul R. Watkins Before I break down into the preaching of this module I result bid to cover a few terms that will assuage the understanding of this discussion. accord to the textbook Managerial Accounting, section permissiveness is the amount stay from sales r until nowues after all protean expenses concur been deducted. Another term is break-even point Break-even point is the train of sales at which profit is zero. The break-even point dismiss as thoroughly as be defined as the point where number sales equals broad(a) expenses or as the point where total theatrical role brink equals total fixed expenses. The nigh term is contribution margin ratio (CM ratio), which is the contribution margin as a office of total sales. Finally, the sales flow is the relative sim ilitude in which a companys products are sold. gross revenue mix is computed by expressing the sales of each product as a percentage of total sales. Now, with those terms covered I will get into the discussion of Harry Huffnpuff Glassblowing business. Harry Huffnpuff Glassblowing is a business that has a large amount of potential for branch and profit, but is shortly not maximizing its assets. Analysis of his be on a basis of behavior will cede Harry to assure how much he needs to father to break even and even obtain his desired income. In addition, he will be able to modulate where he can go maximize his assets to include his time. When determining the be of goods, Harry incurs varying costs depending on the number of bundles that he produces each week. To determine the variable region and fixed component of the cost of goods we can exercising the high-low method. Using the highest and lowest bole process level from his activity, we use the weeks when he pro duces six and four-spot bundles: Differenc! e in activity = 2...If you want to get a full essay, order it on our website: OrderEssay.net

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