Managerial Accounting paper

For this assignment, develop a 4 -5 pages response containing written narrative, figures, and charts.

Milano Co. manufactures and sells three products: product 1, product 2, and product 3. Their unit selling prices are product 1, $40; product 2, $30; and product 3, $20. The per unit variable costs to manufacture and sell these products are product 1, $30; product 2, $15; and product 3, $8. Their sales mix is reflected in a ratio of 6:4:2. Annual fixed costs shared by all three products are $270,000. One type of raw material has been used to manufacture products 1 and 2. The company has developed a new material of equal quality for less cost. The new material would reduce variable costs per unit as follows: product 1 by $10 and product 2 by $5. However, the new material requires new equipment, which will increase annual fixed costs by $50,000.

• If the company continues to use the old material, determine its break-even point in both sales units and sales dollars of each individual product. 

• If the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product. (Round to the next whole unit.) 

• What insight does this analysis offer management for long-term planning?

  View the Written Paper Grading Rubric.

Criteria

Performance Indicators

(Observation descriptors indicating extent to which criterion is met.)

Level 4

Exemplary

Level 3

Proficient

Level 2

Needs Improvement

Level 1

Unsatisfactory

No Submission

Points

4

3

2

1

0

Depth

30% of overall grade

Content indicates synthesis of ideas, in depth analysis, and evidence of original thought and support for the topic.

30 points

Content indicates original thinking and develops ideas with sufficient and firm evidence.

22.5 points

Content indicates thinking and reasoning applied with original thought on a few ideas.

15 points

Content indicates some thinking and reasoning but most ideas are unoriginal or underdeveloped.

7.5 points

0 points

Resources

25% of overall grade

All evidence supports arguments and is relevant to the topic. The student uses the required number and type of resources identified in the syllabus to support his/her argument.

25 points

Most evidence supports arguments and is relevant to the topic. The student uses 75% of the required number and type of resources identified in the syllabus to support his/her argument.

18.75 points

Some evidence supports arguments and is relevant to the topic. The student uses 50% of the required number of sources.

12.5 points

Limited evidence to support arguments, with few sources relevant to the topic. The student uses less than 50% of the required number of sources.

6.25 points

0 points

Organization

15% of overall grade

Paper has a high degree of attention to logic and reasoning of points. Paper clearly leads the reader to the conclusion and stirs thought regarding the topic.

15 points

Paper is coherent and logically organized with transitions used between ideas and paragraphs to create coherence. Overall unity of ideas is present.

11.25 points

Paper is somewhat structured and logically organized. Some points remain misplaced and stray from the topic. Transitions evident but not used throughout.

7.5 points

Paper is limited in logical organization with major errors.

3.75 points

0 points

Mechanics

15% of overall grade

Paper is free of distracting spelling, punctuation, and grammatical errors.

15 points

Paper has few spelling, punctuation, and grammatical errors allowing the reader to follow ideas clearly.

11.25 points

Most spelling, punctuation, and grammar are correct, which allows the reader to progress through the paper. Some errors remain.

7.5 points

Spelling, punctuation, and grammatical errors create distraction, making reading difficult. Errors are frequent.

3.75 points

0 points

Formatting

15% of overall grade

Paper meets all formatting guidelines and assignment requirements, including page-length and APA formatting requirements. Paper is correctly assembled with a professional look.

15 points

The paper follows most formatting guidelines, including page-length and APA formatting requirements.Paper is correctly assembled.

11.25 points

Paper generally follows formatting guidelines and assignment requirements, including page-length and APA formatting requirements. Paper has some assembly errors

7.5 points

Paper does not follow formatting guidelines and assignment requirements, including page -length and APA format requirements. Paper has major assembly errors

3.75 points

0 points