help you out though the store lets you pay off this $200 in installments of $50 per week.
July 11, 2019
From the first e-Activity, evaluate the overall importance of the National Labor
July 11, 2019

Module 1 case
ACCOUNTING COST SYSTEMS AND COST BEHAVIOR
Case Assignment
Preparation of an Income Statement for The Serious Reader
Company
The first case of this course provides an opportunity to
prepare a segmented variable costing (contribution margin, behavioral) income
statement and analyze the information. This is a very small company and the
information may seem simplistic at first glance. Dont forget that numbers and
hands-on practice best illustrate many basic accounting concepts.
The Serious Reader Company is a small online retailer
operating out of a garage apartment. The owner buys books at garage sales,
thrift shops, library sales, and whenever an opportunity arises. The company
classifies all books into five categories based on cost of acquisition and
estimated sales price. See below for details about books purchased and sold
during the last year (201X).

Price Categories

A

B

C

D

E

Units Sold

2,000

1,000

500

400

400

Units Purchased

3,000

1,200

1,000

1,000

1,000

Resale Price

$4.00

$15.00

$25.00

$45.00

$40.00

Cost

$0.50

$5.00

$10.00

$20.00

$20.00

In addition to purchasing inventory (used books), the
company incurs some operating expenses.

Variable operating expenses

Shipping per book

$ 1.50

Fixed expenses

Internet-related costs

$5,000

Travel, etc.

2,000

Advertising

1,000

Other overhead

3,000

Required:
Computations (use Excel)
Prepare a segmented variable costing (behavioral) income
statement for the company in good format.
Prepare a second variable costing statement assuming 90% of
all the books in each category purchased were actually sold.
Prepare a third variable costing statement assuming that the
price is increased by 50% for all five categories (use original sales information).
The owner enjoys the used-book business. Any suggestions as
how to turn this into a full-time business venture so the owner can quit his
other job? Prepare another income statement to support your idea.
Memo (use Word)
Interpret the results from the computations and explain how
the information is useful. Write a four or five paragraph memo to the owner of
the business. Start with an introduction and end with a recommendation. Each of
the four or five paragraphs should have a heading.
Short essay to comment on the questions below (use Word).
Start with an introduction and end with a summary or conclusion. Use headings.
Maximum length of two pages.
Why do many organizations make the effort to prepare a
different type of income statement for internal purposes?
Variable costing is not just about preparing income
statements. Provide at least three scenarios in which understanding how costs
behave is useful.
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 1 – SLP
ACCOUNTING COST SYSTEMS AND COST BEHAVIOR
You are applying for a managerial position at an innovative
and rapidly growing company. This is a dynamic company that wants an individual
who adds value to the organization. Managers at this company wear many hats, so
the position requires managing products, people, and financial aspects of
running the company.
As part of the interview process, you are required to make a
presentation covering four different topics, one per module for this course.
You choose the company and the new product that you want to
showcase in your presentation. It can be real or fictitious (based on an
industry). This is for background purposes only. The presentation is to
showcase your abilities and what you can contribute to the organization.
IBIS World and BizStats have estimates of cost of good sold
and some other categories of operating expenses. Information about contribution
margins are not available, but adding new products typically mean incurring
both fixed and variable costs. Consequently, cost of good sold is a reasonable
estimate. Net operating income as a percentage of sales or some variation
thereof may also be relevant if the new product is expected to contribute
significantly to the bottom line. As a candidate for a position you would not
have internal information available, but being resourceful and being a skilled
researcher are desired traits for the position. IBIS World also have a wealth
of other market statistics that may be helpful. Use listed background material
and other resources as needed.
Required:
Include the following items in your presentation.
Present an idea for a new product.
Describe the product.
Show some cost estimates and pricing suggestion for this
product based on research.
What approach would you use to determine selling price (for
example cost plus or target costing)? It is important when choosing a design.
Explain your rationale for the pricing approach.
Show expectations of growth and potential profit.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Module 2 – Case
COSTVOLUMEPROFIT ANALYSIS
Case Assignment
The Annie Smith Dance Center
The Director of Annie Smith Dance Center is asking for
assistance with the financial aspects of running a professional group of
performers. She wants financial information presented in an easy to read format
and a better understand of the profitability of the concerts and the
organization as a whole.
The Annie Smith professional group features four dance
concerts each year. Three of the dance concerts showcase a different genre. The
fourth performance is a Christmas Spectacular, which is the most popular dance
concert and is therefore scheduled every year. Ms. Smith has tentatively
scheduled the following four dance concerts for the coming season. The schedule
below shows the type and number of performances and direct cost per type of
concert. Examples of direct fixed costs are costumes, rehearsals, royalties,
guest artist fees, choreography, and salaries of production staff, music, and
wardrobe for each of the four concerts.

Descriptions

Number of
Performances

Cost per Dance
Concert (direct fixed costs)

Hip Hop Concert

10

$45,000

Jazz and Tap Dance

5

88,000

Modern Dance

10

95,000

Christmas Spectacular

20

25,000

$253,000

Additional costs:
Variable costs associated with each performance are shown
below.

Musicians

$7,500

Rental of auditorium

2,500

Dancers’ compensation

7,000

General administrative and operating costs for the dance
center are:

Administrative staff

$185,000

Insurance

25,000

Marketing

215,000

General office expenses

90,000

Lower Orchestra Section (A)

Upper Orchestra Section (B)

Descriptions

No. of Seats

Ticket Price

Tickets Sold per Performance

No. of Seats

Ticket Price

Tickets Sold per Performance

Hip Hop Performance

150

$85

100%

450

$50

90%

Jazz and Tap Dance

150

$85

100%

450

$50

60%

Modern Dance

150

$85

100%

450

$50

95%

Christmas Spectacular

150

$125

100%

450

$50

100%

Required:

Computations (use Excel)

Summarize key financial information in a table as shown
below.

Title

Name of Dance Concert

Revenues/Performance

Variable Costs/Performance

Contribution Margin/Performance

Total Contribution/Type of Dance Concert

Direct Fixed Costs

Segment Margin/Type of Concert

1.

2.

3.

4.

Total

Prepare a segmented income statement in good format.
Compute the number of performances required to break even
for each concert. These are separate computations for each dance concert.
Compute break even for the organization as a whole and
express the result in revenues instead of the number of performances.
Ms. Smith wants to performance group to show at least
$150,000 in operating profit. What level of revenues does the performance group
need to achieve to meet this goal?
Give a recommendation about changes Ms. Smith can make to
achieve the target profit. Support your idea with computations.
Memo (use Word)

Write a four or five paragraph memo to the owner of the
dance center to assist her in interpreting the financial analysis. Start with
an introduction and end with a recommendation. Each of the four or five paragraphs
should have a heading.
Short Essay (use Word)
Start with an introduction and end with a summary or
conclusion. Use headings.
What are some shortcomings of multi-product even analysis?
How does demand and resource constraints affect this type of
analysis.
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 2 – SLP
COSTVOLUMEPROFIT ANALYSIS
Second part of the presentation. See background information
for the module one SLP.
Required:
Include the following items in your presentation.
What about special pricing for some markets or customers?
Show effect on revenues and profitability based on stated
assumptions.
Potential advantages and disadvantages, both financial and
non-financial.
What are the relevant costs to consider?
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.

Module 3 – Case
TRANSFER PRICING AND RESPONSIBILITY CENTERS
Case Assignment
Coffee Maker’s Incorporated (CMI)
Two divisions of a CMI are involved in a dispute. Division A
purchases Part 101 and Division B purchases Part 201 from a third division, C.
Both divisions need the parts for products that they assemble. The intercompany
transactions have remained constant for several years.
Recently, outside suppliers have lowered their prices, but
Division C is not lowering its prices. In addition, all division managers are
feeling the pressure to increase profit. Managers of divisions A and B would
like the flexibility to purchase the parts they need from external parties to
lower cost and increase profitability.
The current pattern is that Division A purchases 3,000 units
of product part 101 from Division C (the supplying division) and another 1,000
units from an external supplier. The market price for Part 101 is $900 per
unit. Division B purchases 1,000 units of Part 201 from Division C and another
500 units from an external supplier. Note that both divisions A and B purchase
the needed supplies from both the internal source and an external source at the
same time.
The managers for divisions A and B are preparing a new
proposal for consideration.
Division C will continue to produce Parts 101 and 201. All
of its production will be sold to Divisions A and B. No other customers are
likely to be found for these products in the short term, given that supply is
greater than demand in the market.
Division C will manufacture 2,000 units of Part 101 for the
Division A and 500 units of Part 201 for the Division B.
Division A will buy 2,000 units of Part 101 from Division C
and 2,000 units from an external supplier at $900 per unit.
Division B will buy 500 units of Part 201 from Division C
and 1,000 units from an external supplier at $1,900 per unit.
Division C Data 2014 Based on the Current Agreement

Part

101

201

Direct materials

$200

$300

Direct labor

$200

$300

Variable overhead

$300

$600

Transfer price

$1,000

$2,000

Annual volume

3,000 units

1,000 units

Required:
Computations (use Excel)
Set up a table similar the one below to compute the
difference between the current situation and the proposal for Divisions A and
B. Design a different table for Division C.

Division A

Current Situation

Proposal

No. of Units

Purchase Price

Total Purchases

No. of Units

Purchase Price

Total Purchases

Internal purchases

3,000

$

2,000

$

External purchases

1,000

2,000

Total cost for part 101

$

$

Savings to Div. A

$

Summarize the financial effects for the three divisions and
the company as a whole in another table.
Memo (use Word)
Write a 4- or 5-paragraph memo to the division manager
explaining the analysis performed. Start with an introduction and end with a
recommendation. Each of the four or five paragraphs should have a heading.
Short Essay (use Word) Start with an introduction and end
with a summary or conclusion. Use headings.
Evaluate and discuss the implications of the following
transfer pricing policies:

Transfer price = cost plus a mark-up for the selling division

Transfer price = fair market value

Transfer price = price negotiated by the managers
Why is transfer pricing such a significant issue both from a
financial and managerial perspective?
Assignment Expectations
Each submission
should include two files: (1) An Excel file; and (2) A Word document. The Word
document shows the memo first and short
essay last. Assume a knowledgeable
business audience and use required format and length. Individuals in business
are busy and want information presented in an organized and concise manner.

Module 3 – SLP
TRANSFER PRICING AND RESPONSIBILITY CENTERS
Third part of the presentation. See background information
for the module one SLP.
Required:
Include the following items in your presentation.
The organization is currently centralized, but is reviewing
options to put a decentralized structure in place.
You are asked to comment on responsibility centers and their
functions.
Cost centers can be a drain on an organization. Do you have
any thoughts about limiting the number of cost centers and control costs?
Present specific ideas.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.

Module 4 – Case
BUDGETING, VARIANCE ANALYSIS, AND PERFORMANCE EVALUATIONS
Case Assignment
T&P Fashion Shops
T&P Fashion Shops is a new chain that operates 10 stores
in major malls throughout the United States. Each store manager is responsible
for preparing a flexible budget for the store. T&P headquarters accumulates
and analyzes the information for each store and in the aggregate.
Below follows some cost estimates for the Houston store.

T&P Fashions

Flexible Budget Information

Expense

Fixed

Variable

Cost of sales

$210,000

40%

$740,000

Management

27,000

12%

186,000

Shop assistants

162,000

8%

268,000

Rent

13,200

5%

54,450

Utilities

34,800

34,800

$447,000

$1,283,250

Additional information
The sales forecast for the year is $1,400,000.
Variable expenses are based on revenues. Do note that
percentage clause for rent only kicks in above $500,000 in sales.
Other expenses are all specific to this store. Headquarters
pay for marketing and corporate overhead expenses.
T&P wants to see a flexible budget based on the sales
forecast, including estimates for sales being 10% below budget and 10% above
budget.
Actual results

T&P Fashions

Actual Results from Operations

Revenues

$1,325,000

Cost of sales

790,000

Management

208,000

Shop assistants

230,000

Rent

58,200

Utilities

31,000

Operating profit

$7,800

Required:
Computations (use Excel)
Prepare a flexible budget in good format.
Compute the flexible variances and indicate whether
favorable or unfavorable.
Headquarters are contemplating charging each store a 5%
marketing expense based on sales. How will that affect the operating profit of
the store and the money available for managerial bonuses based on actual
results for the past year? Summarize the information in the table.
Memo (use Word)
Write a 4- or 5-paragraph memo to the division manager
explaining the flexible budget variances; how to interpret the information; and
what action, if any to take. Comment on the 5% marketing proposal too. Start
with an introduction and end with a recommendation. Each of the four or five
paragraphs should have a heading.
Short Essay (use Word) Start with an introduction and end
with a summary or conclusion. Use headings.
Discuss how to interpret static and flexible budget
variances. How is the information useful in general?
What are the benefits of variance analysis? How can such
analysis be detrimental rather than beneficial to the organization?
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 4 – SLP
BUDGETING, VARIANCE ANALYSIS, AND PERFORMANCE EVALUATIONS
Fourth and final part of the presentation. See background
information for the module one SLP.
Required:
Include the following items in your presentation.
Performance measures. It is important to measure success of
the organization and its managers.
Suggest performance measures for
divisions, product lines, etc.
managers
Comment on the measures selected and explain how they foster
goal congruence for the organization and employees.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A Power
Presentation should have no more than six slides and a Word document cannot
exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.
Rubric
At Trident University, your assignments will be evaluated
using grading rubrics. While every assignment is assessed using one of the
rubrics, grading rubrics may differ across assignments. Should you need help
locating the grading rubric for this SLP, be sure to watch the following video:
http://permalink.fliqz.com/aspx/permalink.aspx?at=b13c1b2c864344a68565357ea2f9f7ff&a=e635c1442edf4f4f9952a5d4ddef7bf0

Module 1 discussion Managerial vs. Financial Accounting Let us explor

Module 1 discussion
Managerial vs. Financial Accounting
Let us explore the differences between financial and
managerial accounting. Financial accounting is rule-oriented, since the
information is used to communicate with third parties. Managerial accounting,
on the other hand, is for internal use. Anything goes as long as the
information is a valuable tool for decision-making purposes, and the benefit of
the information exceeds the cost of accumulating and analyzing it.
References:
Accounting for Management. (n.d.). Difference Between Financial
and Managerial Accounting.
Principlesofaccounting.com. (n.d.). Chapter 17 Multiple
Choice Questions.
Required:
Below are some questions for discussion.
How is the purpose of managerial accounting different from
financial accounting?
Are more accountants involved in the financial or managerial
function today?
Comment on the use of a variable costing approach vs.
absorption income statement. Describe the differences in the presentation and use
of each type of income statement.
How is the concept of cost of goods sold
different from contribution margin ?
Explain the contribution margin concept/computation and when
to use the information.
Choose one or two topics for further investigation and share
your knowledge with the class. Provide factual information (not merely
opinions) backed up by current news, examples, or other interesting details.
Your comments should be in your own words and include references in APA format,
if applicable.
Presence during both weeks of the module and a minimum of
three postings are required, one original posting and two responses to
colleagues. Minimum required participation does not guarantee a perfect score.

Module 2 discussion
Modern Managerial Accounting Techniques
Managerial accounting is changing rapidly as a result of
technology and new types of enterprises. Below is an article that states the
opposite (Talha et al, 2010).
How can we reconcile the two statements? What is a
managerial accounting model? Read the article and comment on some aspect of the
discussion in an attempt to shed some light on this topic. What are your
thoughts at this juncture?
Talha, et al. (2010). A New Look at Management Accounting.
The Journal of Applied Business Research. Volume 26, Number 4, July/August
2012.
It is not necessary to discuss every question or comment
mentioned above. Choose one or two relevant aspects for further investigation
and share your knowledge with the class. Try to add information not previously
discussed by others. Please, provide factual information (not merely opinions)
backed up by details or examples. Your comments should be in your own words and
Include references in APA format.

Module 3 discussion
Transfer Pricing
Transfer pricing is an important topic from multiple
perspectives. It is a global issue affecting taxation, financial results,
performance evaluations, and managerial motivation. Ratios are based on the
underlying financial information. Transfer pricing is a topic in itself, but it
also affects popular financial measures such as EVA (economic value added).
References:
Hiemann, M. and Reichelstein, R. The Dual Role of Transfer
Prices in Multinational Firms: Divisional Performance Measurement and Tax
Optimization. The European Financial Review. http://www.europeanfinancialreview.com/?p=5741
PWC. (2012). Transfer Pricing. Retrieved from http://www.pwc.com/gx/en/tax/transfer-pricing
Slideshare. (2011). Global Management Accounting. Retrieved
from http://www.slideshare.net/costmgmt/issues-in-global-management-accounting-transfer-pricing
Value Based Management.net. (n.d.). Economic Value Added
(EVA). Retrieved from http://www.valuebasedmanagement.net/methods_eva.html
Required:
In this module, well emphasize transfer pricing issues and
responsibility centers. Comment on the importance of these issues, how they are
related, and why they are very important in the business environment.
Above find some resources for some of these topics that you
can use as a starting point. The links are not meant to provide any particular
viewpoint but are a mix of resources viewed both from an accounting and a
business perspective.
Choose one or two topics for further investigation and share
your knowledge with the class. Provide factual information (not merely
opinions) backed up by current news, examples, or other interesting details.
Your comments should be in your own words and include references in APA format,
if applicable.
Presence during both weeks of the module and a minimum of
three postings are required, one original posting and two responses to
colleagues. Minimum required participation does not guarantee a perfect score.

Module 4 discussion
Management Approaches
Corporate citizenship, lean manufacturing, TQM, activity
based management, benchmarking, and Goldratts Theory of Constrains are
concepts used by many corporations to streamline operations, meet demands of
stakeholders, and ultimately to improve profitability.
Required:
Use Internet to research at least one of the above concepts.
How are these relevant to managerial accounting? Please be specific and provide
an example or a corporate story as an illustration in your original posting.
Presence during both weeks of the module and a minimum of
three postings are required, one original posting and two responses to
colleagues. Minimum required participation does not guarantee a perfect score.

Module 4 reflective
discussion
Managerial Accounting Is an Interdisciplinary Topic
You have worked your way through four
managerial-accounting-related Cases and a Session Long Project. Provide three
specific examples about how you would use your new skills in your current
position or a possible future position.

Module 1 case
ACCOUNTING COST SYSTEMS AND COST BEHAVIOR
Case Assignment
Preparation of an Income Statement for The Serious Reader
Company
The first case of this course provides an opportunity to
prepare a segmented variable costing (contribution margin, behavioral) income
statement and analyze the information. This is a very small company and the
information may seem simplistic at first glance. Dont forget that numbers and
hands-on practice best illustrate many basic accounting concepts.
The Serious Reader Company is a small online retailer
operating out of a garage apartment. The owner buys books at garage sales,
thrift shops, library sales, and whenever an opportunity arises. The company
classifies all books into five categories based on cost of acquisition and
estimated sales price. See below for details about books purchased and sold
during the last year (201X).

Price Categories

A

B

C

D

E

Units Sold

2,000

1,000

500

400

400

Units Purchased

3,000

1,200

1,000

1,000

1,000

Resale Price

$4.00

$15.00

$25.00

$45.00

$40.00

Cost

$0.50

$5.00

$10.00

$20.00

$20.00

In addition to purchasing inventory (used books), the
company incurs some operating expenses.

Variable operating expenses

Shipping per book

$ 1.50

Fixed expenses

Internet-related costs

$5,000

Travel, etc.

2,000

Advertising

1,000

Other overhead

3,000

Required:
Computations (use Excel)
Prepare a segmented variable costing (behavioral) income
statement for the company in good format.
Prepare a second variable costing statement assuming 90% of
all the books in each category purchased were actually sold.
Prepare a third variable costing statement assuming that the
price is increased by 50% for all five categories (use original sales information).
The owner enjoys the used-book business. Any suggestions as
how to turn this into a full-time business venture so the owner can quit his
other job? Prepare another income statement to support your idea.
Memo (use Word)
Interpret the results from the computations and explain how
the information is useful. Write a four or five paragraph memo to the owner of
the business. Start with an introduction and end with a recommendation. Each of
the four or five paragraphs should have a heading.
Short essay to comment on the questions below (use Word).
Start with an introduction and end with a summary or conclusion. Use headings.
Maximum length of two pages.
Why do many organizations make the effort to prepare a
different type of income statement for internal purposes?
Variable costing is not just about preparing income
statements. Provide at least three scenarios in which understanding how costs
behave is useful.
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 1 – SLP
ACCOUNTING COST SYSTEMS AND COST BEHAVIOR
You are applying for a managerial position at an innovative
and rapidly growing company. This is a dynamic company that wants an individual
who adds value to the organization. Managers at this company wear many hats, so
the position requires managing products, people, and financial aspects of
running the company.
As part of the interview process, you are required to make a
presentation covering four different topics, one per module for this course.
You choose the company and the new product that you want to
showcase in your presentation. It can be real or fictitious (based on an
industry). This is for background purposes only. The presentation is to
showcase your abilities and what you can contribute to the organization.
IBIS World and BizStats have estimates of cost of good sold
and some other categories of operating expenses. Information about contribution
margins are not available, but adding new products typically mean incurring
both fixed and variable costs. Consequently, cost of good sold is a reasonable
estimate. Net operating income as a percentage of sales or some variation
thereof may also be relevant if the new product is expected to contribute
significantly to the bottom line. As a candidate for a position you would not
have internal information available, but being resourceful and being a skilled
researcher are desired traits for the position. IBIS World also have a wealth
of other market statistics that may be helpful. Use listed background material
and other resources as needed.
Required:
Include the following items in your presentation.
Present an idea for a new product.
Describe the product.
Show some cost estimates and pricing suggestion for this
product based on research.
What approach would you use to determine selling price (for
example cost plus or target costing)? It is important when choosing a design.
Explain your rationale for the pricing approach.
Show expectations of growth and potential profit.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Module 2 – Case
COSTVOLUMEPROFIT ANALYSIS
Case Assignment
The Annie Smith Dance Center
The Director of Annie Smith Dance Center is asking for
assistance with the financial aspects of running a professional group of
performers. She wants financial information presented in an easy to read format
and a better understand of the profitability of the concerts and the
organization as a whole.
The Annie Smith professional group features four dance
concerts each year. Three of the dance concerts showcase a different genre. The
fourth performance is a Christmas Spectacular, which is the most popular dance
concert and is therefore scheduled every year. Ms. Smith has tentatively
scheduled the following four dance concerts for the coming season. The schedule
below shows the type and number of performances and direct cost per type of
concert. Examples of direct fixed costs are costumes, rehearsals, royalties,
guest artist fees, choreography, and salaries of production staff, music, and
wardrobe for each of the four concerts.

Descriptions

Number of
Performances

Cost per Dance
Concert (direct fixed costs)

Hip Hop Concert

10

$45,000

Jazz and Tap Dance

5

88,000

Modern Dance

10

95,000

Christmas Spectacular

20

25,000

$253,000

Additional costs:
Variable costs associated with each performance are shown
below.

Musicians

$7,500

Rental of auditorium

2,500

Dancers’ compensation

7,000

General administrative and operating costs for the dance
center are:

Administrative staff

$185,000

Insurance

25,000

Marketing

215,000

General office expenses

90,000

Lower Orchestra Section (A)

Upper Orchestra Section (B)

Descriptions

No. of Seats

Ticket Price

Tickets Sold per Performance

No. of Seats

Ticket Price

Tickets Sold per Performance

Hip Hop Performance

150

$85

100%

450

$50

90%

Jazz and Tap Dance

150

$85

100%

450

$50

60%

Modern Dance

150

$85

100%

450

$50

95%

Christmas Spectacular

150

$125

100%

450

$50

100%

Required:

Computations (use Excel)

Summarize key financial information in a table as shown
below.

Title

Name of Dance Concert

Revenues/Performance

Variable Costs/Performance

Contribution Margin/Performance

Total Contribution/Type of Dance Concert

Direct Fixed Costs

Segment Margin/Type of Concert

1.

2.

3.

4.

Total

Prepare a segmented income statement in good format.
Compute the number of performances required to break even
for each concert. These are separate computations for each dance concert.
Compute break even for the organization as a whole and
express the result in revenues instead of the number of performances.
Ms. Smith wants to performance group to show at least
$150,000 in operating profit. What level of revenues does the performance group
need to achieve to meet this goal?
Give a recommendation about changes Ms. Smith can make to
achieve the target profit. Support your idea with computations.
Memo (use Word)

Write a four or five paragraph memo to the owner of the
dance center to assist her in interpreting the financial analysis. Start with
an introduction and end with a recommendation. Each of the four or five paragraphs
should have a heading.
Short Essay (use Word)
Start with an introduction and end with a summary or
conclusion. Use headings.
What are some shortcomings of multi-product even analysis?
How does demand and resource constraints affect this type of
analysis.
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 2 – SLP
COSTVOLUMEPROFIT ANALYSIS
Second part of the presentation. See background information
for the module one SLP.
Required:
Include the following items in your presentation.
What about special pricing for some markets or customers?
Show effect on revenues and profitability based on stated
assumptions.
Potential advantages and disadvantages, both financial and
non-financial.
What are the relevant costs to consider?
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.

Module 3 – Case
TRANSFER PRICING AND RESPONSIBILITY CENTERS
Case Assignment
Coffee Maker’s Incorporated (CMI)
Two divisions of a CMI are involved in a dispute. Division A
purchases Part 101 and Division B purchases Part 201 from a third division, C.
Both divisions need the parts for products that they assemble. The intercompany
transactions have remained constant for several years.
Recently, outside suppliers have lowered their prices, but
Division C is not lowering its prices. In addition, all division managers are
feeling the pressure to increase profit. Managers of divisions A and B would
like the flexibility to purchase the parts they need from external parties to
lower cost and increase profitability.
The current pattern is that Division A purchases 3,000 units
of product part 101 from Division C (the supplying division) and another 1,000
units from an external supplier. The market price for Part 101 is $900 per
unit. Division B purchases 1,000 units of Part 201 from Division C and another
500 units from an external supplier. Note that both divisions A and B purchase
the needed supplies from both the internal source and an external source at the
same time.
The managers for divisions A and B are preparing a new
proposal for consideration.
Division C will continue to produce Parts 101 and 201. All
of its production will be sold to Divisions A and B. No other customers are
likely to be found for these products in the short term, given that supply is
greater than demand in the market.
Division C will manufacture 2,000 units of Part 101 for the
Division A and 500 units of Part 201 for the Division B.
Division A will buy 2,000 units of Part 101 from Division C
and 2,000 units from an external supplier at $900 per unit.
Division B will buy 500 units of Part 201 from Division C
and 1,000 units from an external supplier at $1,900 per unit.
Division C Data 2014 Based on the Current Agreement

Part

101

201

Direct materials

$200

$300

Direct labor

$200

$300

Variable overhead

$300

$600

Transfer price

$1,000

$2,000

Annual volume

3,000 units

1,000 units

Required:
Computations (use Excel)
Set up a table similar the one below to compute the
difference between the current situation and the proposal for Divisions A and
B. Design a different table for Division C.

Division A

Current Situation

Proposal

No. of Units

Purchase Price

Total Purchases

No. of Units

Purchase Price

Total Purchases

Internal purchases

3,000

$

2,000

$

External purchases

1,000

2,000

Total cost for part 101

$

$

Savings to Div. A

$

Summarize the financial effects for the three divisions and
the company as a whole in another table.
Memo (use Word)
Write a 4- or 5-paragraph memo to the division manager
explaining the analysis performed. Start with an introduction and end with a
recommendation. Each of the four or five paragraphs should have a heading.
Short Essay (use Word) Start with an introduction and end
with a summary or conclusion. Use headings.
Evaluate and discuss the implications of the following
transfer pricing policies:

Transfer price = cost plus a mark-up for the selling division

Transfer price = fair market value

Transfer price = price negotiated by the managers
Why is transfer pricing such a significant issue both from a
financial and managerial perspective?
Assignment Expectations
Each submission
should include two files: (1) An Excel file; and (2) A Word document. The Word
document shows the memo first and short
essay last. Assume a knowledgeable
business audience and use required format and length. Individuals in business
are busy and want information presented in an organized and concise manner.

Module 3 – SLP
TRANSFER PRICING AND RESPONSIBILITY CENTERS
Third part of the presentation. See background information
for the module one SLP.
Required:
Include the following items in your presentation.
The organization is currently centralized, but is reviewing
options to put a decentralized structure in place.
You are asked to comment on responsibility centers and their
functions.
Cost centers can be a drain on an organization. Do you have
any thoughts about limiting the number of cost centers and control costs?
Present specific ideas.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.

Module 4 – Case
BUDGETING, VARIANCE ANALYSIS, AND PERFORMANCE EVALUATIONS
Case Assignment
T&P Fashion Shops
T&P Fashion Shops is a new chain that operates 10 stores
in major malls throughout the United States. Each store manager is responsible
for preparing a flexible budget for the store. T&P headquarters accumulates
and analyzes the information for each store and in the aggregate.
Below follows some cost estimates for the Houston store.

T&P Fashions

Flexible Budget Information

Expense

Fixed

Variable

Cost of sales

$210,000

40%

$740,000

Management

27,000

12%

186,000

Shop assistants

162,000

8%

268,000

Rent

13,200

5%

54,450

Utilities

34,800

34,800

$447,000

$1,283,250

Additional information
The sales forecast for the year is $1,400,000.
Variable expenses are based on revenues. Do note that
percentage clause for rent only kicks in above $500,000 in sales.
Other expenses are all specific to this store. Headquarters
pay for marketing and corporate overhead expenses.
T&P wants to see a flexible budget based on the sales
forecast, including estimates for sales being 10% below budget and 10% above
budget.
Actual results

T&P Fashions

Actual Results from Operations

Revenues

$1,325,000

Cost of sales

790,000

Management

208,000

Shop assistants

230,000

Rent

58,200

Utilities

31,000

Operating profit

$7,800

Required:
Computations (use Excel)
Prepare a flexible budget in good format.
Compute the flexible variances and indicate whether
favorable or unfavorable.
Headquarters are contemplating charging each store a 5%
marketing expense based on sales. How will that affect the operating profit of
the store and the money available for managerial bonuses based on actual
results for the past year? Summarize the information in the table.
Memo (use Word)
Write a 4- or 5-paragraph memo to the division manager
explaining the flexible budget variances; how to interpret the information; and
what action, if any to take. Comment on the 5% marketing proposal too. Start
with an introduction and end with a recommendation. Each of the four or five
paragraphs should have a heading.
Short Essay (use Word) Start with an introduction and end
with a summary or conclusion. Use headings.
Discuss how to interpret static and flexible budget
variances. How is the information useful in general?
What are the benefits of variance analysis? How can such
analysis be detrimental rather than beneficial to the organization?
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 4 – SLP
BUDGETING, VARIANCE ANALYSIS, AND PERFORMANCE EVALUATIONS
Fourth and final part of the presentation. See background
information for the module one SLP.
Required:
Include the following items in your presentation.
Performance measures. It is important to measure success of
the organization and its managers.
Suggest performance measures for
divisions, product lines, etc.
managers
Comment on the measures selected and explain how they foster
goal congruence for the organization and employees.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A Power
Presentation should have no more than six slides and a Word document cannot
exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.
Rubric
At Trident University, your assignments will be evaluated
using grading rubrics. While every assignment is assessed using one of the
rubrics, grading rubrics may differ across assignments. Should you need help
locating the grading rubric for this SLP, be sure to watch the following video:
http://permalink.fliqz.com/aspx/permalink.aspx?at=b13c1b2c864344a68565357ea2f9f7ff&a=e635c1442edf4f4f9952a5d4ddef7bf0


 

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