# [SOLVED] Cost Volume

I dont know how to handle this Accounting question and need guidance.

Struggling to find relevant content? Order a custom essay on
[SOLVED] Cost Volume
Let our experts save you the hassle

Purpose of Assignment

The Case Study focuses on CVP (Cost-Volume-Profit), break-even, and margin of safety analyses which allows students to experience working through a business scenario and applying these tools in managerial decision making.

Scenario: Mary Willis is the advertising manager for Bargain Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add \$24,000 in fixed costs to the \$270,000 in fixed costs currently spent. In addition, Mary is proposing a 5% price decrease (\$40 to \$38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at \$24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects these changes will have on the break-even point and the margin of safety.

###### Assignment Steps

Complete the following:

• Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used.
• Compute the margin of safety ratio for current operations and after Mary’s changes are introduced (Round to nearest full percent).
• Prepare a CVP (Cost-Volume-Profit) income statement for current operations and after Mary’s changes are introduced.

Prepare a maximum 500-word informal memo to management addressing Mary’s suggested changes.

• Explain whether Mary’s changes should be adopted. Why or why not? Analyze the above information (three bullet points above) and use this information to support your suggestion.

USE the memo template provided in week 1.

Show your work in Excel.

Complete calculations/computations using Excel.

Calculate the price
Pages (550 words)
\$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
Sign up, place your order, and leave the rest to our professional paper writers in less than 2 minutes.
step 1
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
s
Get personalized services with GPA Fix
One writer for all your papers
You can select one writer for all your papers. This option enhances the consistency in the quality of your assignments. Select your preferred writer from the list of writers who have handledf your previous assignments
Same paper from different writers
Are you ordering the same assignment for a friend? You can get the same paper from different writers. The goal is to produce 100% unique and original papers
Copy of sources used
Our homework writers will provide you with copies of sources used on your request. Just add the option when plaing your order
What our partners say about us
We appreciate every review and are always looking for ways to grow. See what other students think about our do my paper service.
Nursing
Perfect as usual!!! Thanks team!
Customer 452453, May 26th, 2021
Social Work and Human Services
Awesome, Work! Didn't have to add much to it. Thank You!
Customer 452587, September 7th, 2021
Other
thanks
Customer 452653, October 31st, 2021
IT, Web
Paper was great and accomplished everything I needed.
Customer 452885, October 27th, 2022
Nursing
Another great paper! Thank you!
Customer 452707, June 16th, 2022
GREAT
Customer 452813, June 30th, 2022
Thanks
Customer 452701, August 16th, 2022
Ethics
thank you
Customer 452493, March 15th, 2021
Psychology
Good mastery of ABA concepts. Excellent!
Customer 452469, May 14th, 2022
Marketing
Thank you great job
Customer 452813, July 10th, 2022