TREASURE MAP.

Treasure map.

treasure map.

finance & ACCOUNTING.

Team:

Ramírez Franco Emily D. Meneses Meneses Larissa. López Crisanto Lucero. Sarmiento Cadena Astrid F. López Ramírez Brenda.

Teacher: Rosete Guevara Andrea.

4°d.

upaep santiago ii.

start

CONTENT.

Pirate Meeting.

The bridge of truth.

The waterfall of the frame.

Conclusion.

The fearsome pirate.

The island of criticism.

01

READIND THE CASE.

WINDCHEATER CAR ROOFFACKS.

The sole owner of WINDCHEATER CAR ROOFFRACKS needs to expand output as a result of increasing demand from motor accessory shops. The business uses batch production to reduce its roof racks, current output capacity has been reached at 5,000 units per year. Each rack is sold to the retailers for $40. Production costs are: direct labor $10 direct materials $12 fixed costs $54,000

02

ANALYZE THE 2 OPTIONS.

Option 2.

Option 1.

Purchase new machinery, which will speed up the production process and cut down on wasted materials. Fixed cost would rise by $6,000 per year, but direct cost would be reduced by $2 per unit. Output capacity would increase by 50%.

Extend the existoin premises, but keep the same method of production. This would increase fixed cost by $27,000 per year and direct cost would remaind unchanged. Capacity would be double.

03

CONSTRUCT BEP CHART.

Option 2.

Option 1.

04

CALCULATE & GRAPH.

Option 1.

Option 2.

05

EVALUATE.

Both of them generate the same amount of products, One of the disadvantages of the first option could be that you are going to need to pay more fixed costs, these increase too much, and that means more expenses than profit, and in the second one, from a bigger amount of fixed cost, we can obtain higher profits.

06

CONCLUSION.

finally we can identify the best option for the windcheater car, the option number 2 is the best option because if this produce 5000 units the profit will be 40,000 and the first option only generate 9,000 and the windchater would pay less in the fixed cost.

thanks!