- Prepare an income statement in reasonably good form for Polly Plates’ 20x0 year. Use the absorption costing format (also known as the “GAAP” or “external financial reporting” format).
- One of the board members, hearing of the net loss expected for 20x0 at the first board meeting described above, asked whether anyone knew how many plates the company would need to sell to break even. Calculate PPI’s breakeven point (in plates) using 20x0’s cost structure. Recall that a company’s cost structure is its selling price per unit, variable cost per unit, and total fixed cost.
- Another board member at the 20x0 meeting responded to that query, asking, “Who cares what it takes to make zero net income? I’d like to know what sales would be necessary to make $2 million a year… as we did in the old days! Harrumph!” Calculate the sales (in plates) PPI needed to yield a net income of $2 million, using 20x0’s cost structure.
- As the discussion about breakeven points and profit planning wound down, an elderly board member awoke from his nap, saw the breakeven charts on the projection screen, and mumbled something about “direct costing.” His granddaughter (also on the board and a recent MBA graduate) responded by saying, “Wait! I think I remember that term. Yes, in fact, you can do a whole income statement using direct costing. In Professor Blatterfitzel’s class, we called it ‘variable costing’ or the ‘contribution margin format income statement,’ or something like that.” Prepare an income statement in reasonably good form for PPI’s 20x0 year using variable costing (also called “direct costing” or “the contribution margin format”).
- Prepare the GAAP (absorption costing format) income statement in reasonably good form for PPI’s 20x1 year (show the results just as the controller would have … before taxes and Deb’s bonus).
- Calculate PPI’s 20x1 ending inventory amount (under absorption costing), in both plates and dollars.
- Prepare PPI’s 20x1 income statement in reasonably good form using variable costing (also called direct costing or contribution margin format costing). Show the net income before taxes and before Deb’s bonus so it is comparable to Robin’s absorption cost net income.
- In no more than 200 words, write an assessment of Ms. Bett's performance as president (do not evaluate her performance as a consultant before she became president). In the first sentence, you must state whether you found her performance overall was "excellent," "average," or "poor." Then you should present facts (such as numbers from one or more of the financial statements you created to answer previous requirements) and logical arguments that support your assessment. You may only use facts stated or readily inferred from the case (that is, do not make things up). Support your assessment using those facts and draw logical conclusions from those facts.
Our Free Services
Paper Formatting
- Double or single-spaced
- 1-inch margin
- 12 Font Arial or Times New Roman
- 300 words per page
No Lateness!
Our orders are delivered strictly on time without delay
Our Guarantees
- Free Unlimited revisions
- Guaranteed Privacy
- Money Return guarantee
- Plagiarism Free Writing
Performance Assessment: Polly Plates
Our Services
- Research Paper Writing
- Essay Writing
- Dissertation Writing
- Thesis Writing
Daily Statistics
- 134 New Projects
- 235 Projects in Progress
- 432 Inquiries
- 624 Repeat clients
Why Choose Us
- Money Return guarantee
- Guaranteed Privacy
- Written by Professionals
- Paper Written from Scratch
- Timely Deliveries
- Free Amendments