BBAC501 Assignment: (Groups of 2 students) (Total Marks 15)
Due Date: Session 5.2
Crumpler is a Melbourne based product designers group that manufacture a range products including bags, backpacks, luggage, laptop bags, camera bags, casual bags, etc. The team has experienced in making unique pattern products for more than 40 years. The company is well known for producing items that contributed in solving everyday carrying problems through the design of functional products. The company emphasises on a creed that reads ‘Built for Purpose & Made to Last’. Crumpler has retail stores located in different places of Australia and engages in selling products online to the wider customer base. The company's accountant, Mr. James Carlton, has just compiled sales forecast in relation to three products: Squid, Proud Stash and Private Zoo. Crumpler has experienced considerable volatility in sales volumes and variable costs of its products over the past years. Mr. Carlton believes that the forecast should be cautiously assessed from a cost-volume-profit perspective. The initial budget data for the year 2017 is as follows.
Squid Proud Stash Private Zoo
Unit sales 4,500 4,500 6,000
Unit sales price $64 $78 $125
Variable manufacturing costs per unit $40 $48 $75
Variable selling cost per unit $12 $16 $22
For the coming year, Crumpler 's fixed manufacturing overhead is budgeted at $150,000, and the company's fixed selling and administrative costs are forecast to be $120,000. Crumpler has a tax rate of 30 per cent.
Required: (treat each requirement independently, show all computations)
1. Determine Crumpler 's budgeted net profit for the year 2017. (Hint: use contribution margin approach to income statement or variable costing statement). 3 Marks
2. Assuming the sales mix remains as planned, determine how many units of each product Crumpler must sell in order to breakeven in the year 2017. 3 Marks
3. Calculate the following items for Crumpler:
a. the projected safety margin in units for the year 2017. 2 Marks
b. the projected safety margin in sales dollars for the year 2017. 2 Marks
4. After preparing the original estimates, management determined that the variable manufacturing cost of Private Zoo would increase by 25 per cent, and the variable selling cost of Proud Stash could be expected to increase by $3.00 per unit. However, management have decided not to change the selling price of either product. In addition, management have learned that Private Zoo has been perceived as the best value on the market, and they can expect to sell three times as many Private Zoo as each of their other products. Under these circumstances, determine how many units of each product Crumpler would have to sell in order to break even in the year 2017. 5 Marks
UNIT CODE and NAME: BBAC501 Management Accounting
TERM/Year: T4 - 2017
Student Names and ID Numbers: 1.
Marks: This assignment is worth 15% for the unit.
DUE DATE: This assignment is due on the 30th of November 2017 (11:00 pm) – use turnitin via Moodle.
SUBMISSION REQUIREMENTS: This is a group assignment. Team of three (3) students should complete the task. If a student completes the assignment individually and submits the file, 3 marks will be reduced right away for not following the instruction.
Only one report must be submitted on Moodle via the turnitin link available under
‘assessments’ on or before the due date for similarity check. Submission via email is neither acceptable nor marked. One hard copy report should be submitted on or before 4:30PM on Sept. 19. Please use this document as a cover page for your report and must be signed at the bottom of the page by both team members declaring that the work has not been plagiarized.
You MUST rename your file with a ‘student number’ of group members. You need to indicate who completed each requirement and how the task has been assigned.
Nominate one person to upload the final answer file on to Moodle. Please avoid submitting double files. If you upload your file twice, 3 marks will be reduced from the marks earned.
Presentation of the paper: 1. Answers for each requirement should be clearly labelled and complete (showing workings and formulas used for each part, when applicable).
2. To enhance the quality of your responses, please read the marking rubric and follow the instructions under the assignment requirements correctly.
3. Show good and clear format of presentation in response to the answers for each question.
Use of tables would be a good choice in presenting neat answers.
4. Use 'Times New Roman' or ‘Arial’, and Font size should be 12.
COMPLANCE ISSUES: In academic work, ideas and words are seen as belonging to the person who first created or wrote them. Plagiarism is when you copy someone else's work and don’t acknowledge the author or the source. Plagiarising someone's work equates to failing to comply with the basic standards of academic integrity.
Plagiarism occurs when students do not acknowledge that they have used the ideas and/or work of others in the completion of a task(s) that are submitted as their own for assessment. This includes submitting work and claiming authorship when:
• Other people’s work and/or ideas are paraphrased and presented as the student’s own without the appropriate referencing of the source of work/idea that has been used
• Other student’s work is copied or partly copied
• Other people’s designs, or images are presented as the student’s own work
• Phrases or passages are used verbatim without the appropriate quotation marks, and/or without a reference to the original author, and publication details (for a book) or a web page ( for an internet source)
• Lecture notes are reproduced without acknowledgement
• A student has contracted another person to do the work (i.e., contract cheating) • A student has purchased work from another source.
A claim from students that the rules are different in their country of origin and that they didn’t know the rules regarding plagiarism in Australia will not be regarded as an acceptable excuse.
(Please refer to CIC’s Plagiarism policy for more details)
(to be signed by both team members)
We ; and . assure that the assignment work is original and has been completed jointly by us. We have not plagiarised any material and have not asked and/or paid a third party to complete our assessment task.
Signature 1. Signature 2. Signature 3.