Catawba Industrial Company Essay

1.Is the comp both cover in its practice of not manufacturing measuring stick copy compressors on sunlights beca subprogram of the accounting loss incurred on apiece 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(prenominal) hebdomad and to sell them at a price of $8,000, how a great deal better or worse off pecuniaryly would Catawba be?4.What weekly production plan for standard and light weight compressors would result in the highest financial return for Catawba? That is, how many of each product should Catawba flummox each week?Assume that you have been chartered by Marge McPhee to help with the three finales she must(prenominal) 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. Y ou will recommend and justify a raceway of action for each decision. McPhee wants to make the right decision for herself and her division, which is treated as a profit focalize and evaluated based on profit as computed in Exhibit 2. However, the correct decision model and her scoop interests (in terms of mindless term performance measurement) whitethorn not agree. As an accountant, you must inform her of this discrimination and explain it so that she can, in turn, explain it to owners or top management. Be sure to discuss each the assignment questions within your written analysis. You will motif to determine the optimal volume and price to accept the correct production schedule.Memo Instructions1.The memorandum is an individual project, so you are expected to race on it yourself without seeking any ones help other than the instructor. You should bring TWO consummate(a) copies of the memo and any exhibits to class. All assignments must be handed in by the beginning of the class. vex a copy of the memo and/or luxuriant notes to class with you so you will be up to(p) to discuss the case intelligently in class.2.Download and check the memo about writing memos provided by the communication theory specialists. You can download it from the courses entanglement page in the announcements section.3.The memo shoulda.Be written in proper memo format to Marge McPhee. several(prenominal) templates are provided in MS Word. This assignment has a three-page maximum page limit, not including exhibits. b.Indicate the authors name and show his/her handwritten initials. c.Begin with a short introductory paragraph stating the purpose of the memo, and end with a brief concluding paragraph. d.Your memo should contain at least the following sections Sunday manufacturing, Minimum light-weight production, optimum 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 r eadings assigned for this course, as well as any other sources you may choose), you must acknowledge the source using sequester footnotes.