Managerial Accounting: Tools for Business Decision Making, 4th Edition
Jerry J. Weygandt, Univ. of Wisconsin, Madison
Paul D. Kimmel, Univ. of Wisconsin-Milwaukee
Donald E. Kieso, Northern Illinois Univ.
CASE 6 Sweats Galore, CA-21
Click here for the SOLUTION
SWEATS GALORE
Developed by Jessica Johnson Frazier, Eastern Kentucky University and Patricia H. Mounce, Mississippi College
Solutions and case suggestions are available from your instructor. They are found on your instructor’s Weygandt Managerial 2e book companion site.
After graduating from Eastern University in Campus Town, USA with a degree in business, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at getting a job in his discipline, Michael decided to go into business for himself. In thinking about his business venture, Michael determined that he had four criteria for the new business.
• First, he wanted to do something that he would enjoy.
• Second, he wanted a business that would give back to the community.
• Third, he wanted a business that would grow and be more successful every year.
• Fourth, realizing that he was going to have to work very hard, Michael wanted a business that would generate a minimum net income of $25,000 annually.
.............AND SO ON
Answer each of the following questions.
1. Do you think it was important for Michael to stipulate that he wanted a business that he would enjoy, that would give back to the community, that would grow and be more successful every year, and that would generate a net income of $25,000 annually? Why or why not?
2. If Michael has sales of $12,000 during January of his first year of business, determine the amount of variable and fixed costs associated with utilities and maintenance using the high-low method for each.
........AND SO ON
Sweats Galore: Case for Management Decision Making
Click here for the SOLUTION
