Tuesday, April 16, 2019
Catawba Industrial Company Essay Example for Free
Catawba industrial Company Essay1.Is the company go down in its practice of not manufacturing standard model compressors on Sundays because of the accounting loss incurred on each unit?2.The compressor department and its manager are evaluated establish on profit. Compute the compressor department profit with and without Sunday production.3.If Marge McPhee decides to manufacture ten light-weight compressors each week and to cope them at a price of $8,000, how much better or worse off financially would Catawba be?4.What weekly production plan for standard and light weight compressors would result in the highest financial give back for Catawba? That is, how many an(prenominal) of each product should Catawba produce each week?Assume that you have been hired by Marge McPhee to help with the three decisions she essential make (1) whether to produce on Sunday, (2) whether to produce any light-weight compressors, (3) how many of each compressor should be manufactured each week. You will recommend and justify a course of put through for each decision. McPhee wants to make the right decision for herself and her division, which is treated as a profit center and evaluated based on profit as computed in Exhibit 2. However, the correct decision model and her best interests (in damage of short term performance measurement) may not agree. As an accountant, you must inform her of this inconsistency and condone it so that she nooky, in turn, explain it to owners or top management. Be sure to deal all the assigning questions within your written analysis. You will need to determine the optimal volume and price to choose the correct production schedule.Memo Instructions1.The memoranda is an individual project, so you are expected to work on it yourself without seeking any ones help other than the instructor. You should bring TWO complete copies of the memo and any exhibits to class. All assignments must be handed in by the beginning of the class. Bring a copy of the memo and/or detailed notes to class with you so you will be able to discuss the case intelligently in class.2.Download and read the memo about writing memos provided by the communications specialists. You can download it from the courses web page in the announcements section.3.The memo shoulda.Be written in decent memo format to Marge McPhee. Several templates are provided in MS Word. This assignment has a three-page upper limit page limit, not including exhibits. b.Indicate the authors name and show his/her handwritten initials. c.Begin with a short canonical paragraph stating the purpose of the memo, and end with a shortened concluding paragraph. d.Your memo should contain at to the lowest degree the following sections Sunday manufacturing, Minimum light-weight production, Optimal light-weight and standard production, and Performance evaluation issues. e.If you wish to use brief references to the work of others (including the text and readings assigned for this course, as well as any other sources you may choose), you must acknowledge the source using appropriate footnotes.