Expert answer:Accounting 501 Module 2
Expert answer:Second part of the presentation. See background information for the Module 1 SLP.Please use my previous paper written as a guide to answer these 4 questions. The home appliance we created is called “Pots and Pans In Hand”. All information below is fictional. The attached Power Point is an example of a presentation that must be presented or a 2 page paper.Required:Include the following items in your presentation:What about special pricing for some markets or customers?Determination of customer profitability.Show effect on revenues and profitability based on stated assumptions.Potential advantages and disadvantages, both financial and non-financial.
slp___acc501_module_2_accounting_for_decision_making__2017oct30ft_1_.pdf
powerpoint_example.pptx
acc501__module_slp_1_account_cost_system_and_cost_behavior__dewane_brown.docx
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11/22/2017
SLP – ACC501 Accounting for Decision Making (2017OCT30FT-1)
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Module 2 – SLP
COST–VOLUME–PROFIT ANALYSIS
Second part of the presentation. See background information for the Module 1 SLP.
Required:
Include the following items in your presentation:
What about special pricing for some markets or customers?
Determination of customer profitability.
Show effect on revenues and profitability based on stated assumptions.
Potential advantages and disadvantages, both financial and non-financial.
SLP Assignment Expectations
Submit a PowerPoint presentation or a Word Document. A PowerPoint 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 SLP 2 Dropbox.
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Joseph Wineman
Trident University International
ACC 501: Accounting for Decision Making
13 June 2016
As a new manager with Sony, I have developed a
new product, the Sony FindMee, a product that will
enable people to locate easily misplaced products in
and around the home.
This new move would flex the product portfolio of
the company and augment the market share.
It is a modification of some of the product retrievers
already on the market, and an extension of the role of
our current remote control device.
The Sony FindMee involves a remote control device that detects
distinctive microchips embedded in general household products
Examples of suitable household products to be fitted with these
microchips include keys, handbags, wallets, and other small
products that easily get misplaced in and around the house.
As technology improves and the devices around us get smaller, the
odds of losing these items increases.
The Sony FindMee would solve the problem of constantly losing
these small products by activating the microchips whenever we
cannot immediately locate them.
From market research based on other, simpler
product retrievers on the market, the estimated
per unit cost of making the Sony FindMee is
between $12 and $17.
Since the Sony FindMee is more sophisticated
in terms of number of devices it can support,
its estimated cost is placed around $25 per
unit.
A cost plus mark up pricing approach would be used
for the Sony FindMee
A 50% mark up would be appropriate for market
entry making it favorable for both customers and the
company.
The price of a unit of the product is therefore
expected to be at around $37.50.
➢ The company will make an estimated 3 billion sales in the
next year (2017)
➢ The sales of the company will have a yearly growth of 15%
for the next 5 years; below is a table for growth of revenue
of the company for the next 6 years.
Revenue (million dollars)
7000
6000
5000
4000
Revenue (million
3000
dollars)
2000
1000
0
2017
2018
2019
2020
2021
2022
Baudel, T., & Beaudouin-Lafon, M. (2013). Charade: remote
control of objects using free-hand gestures. Communications
of the ACM, 36(7), 28-35.
Gaonkar, R. (2012). Fundamentals of Micro Controllers and
Applications in Embedded Systems.
SLP-1 ACCOUNT COST SYSTEM AND COST BEHAVIOR
SLP 1- ACCOUNT COST SYSTEM AND COST BEHAVIOR
Dewane Brown
ACC501
11 November 2017
Dr. Tara Murphy
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SLP-1 ACCOUNT COST SYSTEM AND COST BEHAVIOR
Introduction
Black and Decker specializes in some of the finest cookware and hired a new manager to
introduce a new product called Pots and Pans in Hand, but is it enough to deliver a great product.
To deliver Pots and Pans in Hand which is an automated Pot Rack we will present a thorough description
of this product, some of the cost estimates and pricing suggestion for this product based on research.
Additionally, we will determine selling price using target costing and explain the rationale for the
pricing approach. Last but not least, we will examine potential growth and selling price for this product
as that is the nuts and bolts to what we are working to achieve for this organization.
The Breakthrough Product
The breakthrough product that Black and Decker would like to introduce called “Pots and Pans
in Hand” is one that offers automation and innovation. Although many may believe this product is not
necessary, it is necessary for homemakers, chefs and folks that spend countless hours in the kitchen
searching and reaching for pots and pans. How many times have you been in the kitchen knowing
exactly what pot you need, but didn’t know where it was in your cupboard or had a difficult time getting
to it. Well this new piece of innovative equipment will simplify the process by keeping pots organized
and ready for use. I’m sure you may be wondering how this product differs from other products on the
market and how it will simplify the process. The current product that is similar to “Pots and Pans in
Hand” is called a ceiling pot rack which is normally hung over the island in most kitchens. Although
people that are of average height can reach their pots and pans, this does not account for shorter
individuals that struggle to reach them and need assistance to do so. We have provided an answer that
responds for people in this category.
“Pots and Pans in Hand” delivers a machine rack similar to a pot rack that will need to be
installed above the kitchen Island or a place on the ceiling that allows pans to lower within reach. The
rack is equipped with 10 lowering devices somewhat similar to the existing equipment. The difference
in is this equipment lowers 10 hooks by the push of a button to simplify the pot retrieving process.
When the button is pressed the pot selected is lowered. How does one determine what pot is being
lowered? The button panel is the hub where all communication takes place to let the machine know
exactly what Pot is being selected. The button panel is remote and can be mounted on the wall or on
the island. The panel also has a side slot to insert photos of the different pot options to help identify
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SLP-1 ACCOUNT COST SYSTEM AND COST BEHAVIOR
what pot is being selected.
Elements of Costs Associated
In examining cost we must begin by looking at several different types of pot racks that are
currently being sold in stores before delivering our cost estimate. The average cost for a pot rack is
$75.00. There are many different types, shapes and sizes of pot racks that range from $59.00 to
$239.00, but none of them compare to Pots and Pans in Hand. Since we will be delivering an electric
rack that allows the user to retrieve pots automatically by the push of a button, the cost of this
equipment will start at 250.00 and go up to 500.00 depending on the size and style. Customers will
generally demand more of an item if the costs is lower. The price of an item is the point where the
supply at a given price intersects the demand at a specific price (Gillikin, n.d.). In order to solidify a
cost we will utilize target costing to forecast the best price for this amazing product. Target costing is a
system under which a company plans in advance for the price points, product costs, and margins that it
wants to achieve for a new product (Target Costing, 2017). This method is best as it helps having a
target cost to determine net income and ensures supply and demand meet the needs of the
organization.
Growth and potential profit for this product will be great due to the fact that this product will be
in high demand due to the growing need and organized method it delivers. Additionally, Black and
Decker is well known for delivering high quality cookware and this product will ride on the big name
while bringing an automated system to the kitchen. Young and old alike will enjoy this product. Home
and restaurant businesses will look forward to using this product.
Conclusion
The new manager hired by Black and Decker was able to introduce a new product called “Pots
and Pans in Hand” in an effort to deliver a great product. Pots and Pans in Hand which is an automated
Pot Rack is designed to simplify organizing and retrieving pots and pans. Today we were able to
examine some of the cost estimates and pricing suggestion for this product based on research.
Additionally, we determined selling price using target costing and explained the rationale for the
pricing approach. We were also able to examine potential growth and selling price for this
product. Although this does not guarantee success for this product, but it will provide a foundation for
future product growth and net income based on costs determination.
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SLP-1 ACCOUNT COST SYSTEM AND COST BEHAVIOR
Product Type
Round Gourmet Pot Rack
Wood Rectangular Pot Rack
Oval Kitchen Rack
Bookshelf Rack
Gourmet Bookshelf Wall
Mount
Price
$59.00
$122.00
$91.00
$239.00
$83.00
.
Table 1- Costs – Pot Racks on the Market
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SLP-1 ACCOUNT COST SYSTEM AND COST BEHAVIOR
References
Accounting and Cost Systems and Accounting Behavior. (n.d.). Retrieved November 11, 2017, from
Trident.edu: https://tlc.trident.edu/content/enforced/105028-ACC501-2017OCT30FT1/Modules/Module1/Cost%20Behavior.html?ou=105028
Gillikin, J. (n.d.). Price Determination in Economics. Retrieved November 12, 2017, from Chron:
http://smallbusiness.chron.com/price-determination-economics-3884.html
PTarget Costing. (2017, November 7). Retrieved from Accounting Tools:
https://www.accountingtools.com/articles/2017/5/14/target-costing
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