1. Is the company correct in its pattern of non fabricating standard theoretical account compressors on Sundays because of the accounting loss incurred on each unit?

2. The compressor section and its director are evaluated based on net income. Calculate the compressor section net income with and without Sunday production.

3. If Marge McPhee decides to fabricate 10 light-weight compressors each hebdomad and to sell them at a monetary value of $ 8. 000. how much better or worse off financially would Catawba be?

4. What hebdomadal production program for standard and light weight compressors would ensue in the highest fiscal return for Catawba? That is. how many of each merchandise should Catawba bring forth each hebdomad?

Assume that you have been hired by Marge McPhee to assist with the three determinations she must do: ( 1 ) whether to bring forth on Sunday. ( 2 ) whether to bring forth any light-weight compressors. ( 3 ) how many of each compressor should be manufactured each hebdomad. You will urge and warrant a class of action for each determination. McPhee wants to do the right determination for herself and her division. which is treated as a net income centre and evaluated based on net income as computed in Exhibit 2. However. the right determination theoretical account and her best involvements ( in footings of short term public presentation measuring ) may non hold. As an comptroller. you must inform her of this incompatibility and explicate it so that she can. in bend. explicate it to proprietors or top direction. Be certain to discourse all the assignment inquiries within your written analysis. You will necessitate to find the optimum volume and monetary value to take the right production agenda.

Memo Instruction manuals

1. The memo is an single undertaking. so you are expected to work on it yourself without seeking any one’s aid other than the teacher. You should convey TWO complete transcripts of the memo and any exhibits to category. All assignments must be handed in by the beginning of the category. Bring a transcript of the memo and/or elaborate notes to category with you so you will be able to discourse the instance intelligently in category.

2. Download and read the memo about composing memos provided by the communications specializers. You can download it from the course’s web page in the proclamations subdivision.

3. The memo should:

a. Be written in proper memo format to Marge McPhee. Several templets are provided in MS Word. This assignment has a three-page maximal page bound. non including exhibits. B. Bespeak the author’s name and demo his/her handwritten initials. c. Begin with a short introductory paragraph saying the intent of the memo. and terminal with a brief concluding paragraph. d. Your memo should incorporate at least the undermentioned subdivisions: Sunday fabrication. Minimal light-weight production. Optimum light-weight and standard production. and Performance rating issues. e. If you wish to utilize brief mentions to the work of others ( including the text and readings assigned for this class. every bit good as any other beginnings you may take ) . you must admit the beginning utilizing appropriate footers.