Process solutions provides a computer-based document

Assignment Help Managerial Accounting

Reference no: EM13371596

Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.

	Standard	Modified	Advanced
Sales quantity	1,000	1,100	1,200
Selling price	£5	£5	£6
Sales revenue	5,000	5,500	7,200
Labour hours	100	120	160
Labour cost @ £20/hour	2,000	2,400	3,200
Contribution	3,000	3,100	4,000
Contribution per unit sold	£3	£2.82	£3.33

The Sales Manager, whose team is paid a commission on sales revenue prefers to sell the higher priced Advanced service. This is also the preferred service for the Accountant, although not for the same reason, as her argument is that the Advanced service is better because of the higher contribution per unit sold. The Operations Manager argues that the Advanced Service consumes more labour hours than the Standard or Modified services and as labour availability limits his ability to process work, this should also be taken into account. The Operations Manager prefers the Standard or Modified service as this provides greater ability to use his capacity more flexibly.

The General Manager has asked for your advice in relation to this disagreement within the management team.

Reference no: EM13371596

Questions Cloud

Observing plastic deformationthe aim of this demonstration : observing plastic deformationthe aim of this demonstration is to make some observations of the surface relief produced

Flywheelsthe aim of this demonstration is to become : flywheelsthe aim of this demonstration is to become familiar with the derivation of material indexes in general and for

Strategic marketing plansection 1 situational analysis 1500 : strategic marketing plansection 1 situational analysis 1500 words from please find supportive attached u12 compile a

Current issues in marketing and brand managementno : current issues in marketing and brand managementno organisation product or brand exists in a vacuum so it is important

Process solutions provides a computer-based document : process solutions provides a computer-based document processing service. the accountant has produced the following

Comparative analysis of textsthe accrington pals by peter : comparative analysis of textsthe accrington pals by peter whelan and wilfred owens war poetry explore the ways in which

Discuss the impact of marketing strategy on profit in 2 : discuss the impact of marketing strategy on profit in 2 business.1.tesco company2.asda company and this is uk

1estimatetheparticleremovalefficiencyinarectangularsedimenta : 1.estimatetheparticleremovalefficiencyinarectangularsedimentationtankwithadepthof4mwidthof8mlengthof40mandprocessflowrat

Question 1write a perl subroutine for temperature : question 1write a perl subroutine for temperature conversion named converttemp. it should be able to handle both

User Account

All Pages