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Compute margin of safety for the estimated sales volume

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Reference no: EM131861707

Case Study: Mendel Paper Company

Complete: Case 2B (Mendel Paper Company)

In this case, you are provided information regarding selling prices and costs of several products offered by Mendel Paper Company. In addition, management has concerns about sales mix and rising costs. Address the questions (1-5) at the end of the case. Based on the case questions, you are required to provide a three to five double-spaced written report (excluding the title and reference pages), addressing management's concerns. The written report should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Conclusions and recommendations should be supported by at least two scholarly sources from the Ashford Library or other external sources, excluding the textbook.

For Questions 1 through 4, you will need to complete several calculations - be sure to label and clearly identify your work to demonstrate your understanding of the concept even if you are not sure if you have arrived at the correct answer. The calculations should be included as part of your analysis and written report required for submission.

For Question 5, fully address management's concerns as part of your written analysis using the original or revised estimates to support your recommendation/explanation. As part of your written analysis, include how management might use these calculations to make decisions.

Week 1 Written Assignment should:

• Demonstrate graduate level work including appropriate research and critical thinking skills.

• Prepare a written analysis (not a question/answer format)

• Label case questions as paragraph headings.

• Prepare title page, reference page and in-text citations following APA guidelines.(Compose response in a three- to- five double-spaced pages of content, excluding the title and reference pages)

Support your responses with at least two scholarly sources, excluding the textbookInsert prompt.

Questions: 1. From all original estimates given, prepare estimated contribution margins by product line for the next fiscal quarter. Also, show the contribution margins per unit.

2. Prepare contribution margins as in part (1) with all revisions included.

3. For the original estimates, compute each of the following:

a. Break-even point for the given sales mix.

b. Margin of safety for the estimated sales volume.

4. For the revised estimates, compute each of the following:

a. Break-even point for the given sales mix.

b. Margin of safety for the estimated sales volume.

5. Comment on Herbert's concern about the variable cost of the place mats.

Information related to above question is enclosed below:

Attachment:- Week1AssignmentCASE2B.rar

Reference no: EM131861707

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