ABCM in pilot academy training discussion

Business Finance

Requirement

Answer/Solution

  • The contribution margin per unit is:
  • If sales doubled to $240,000, then the total variable costs would equal:
  • If sales doubled to $240,000, then the total fixed costs would equal:
  • Compute the number of units that must be sold to break even.
  • Compute the number of units that must be sold to achieve a profit of $20,000.

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Enter your answer (no calculations necessary) in the “Answer/Solution” column

Think about the company (attached), its products and services, and issues related to cost. Then, review the case study on Boeing (http://web.mit.edu/ctpid/lara/pdfs/abccasestudy.pdf) to understand how activity-based costing and activity-based management can impact managerial decisions within firms. Then respond to the following questions. 3-5 references (in APA format) to help support your answers.

1.Using the company, if you were to conduct an ABCM pilot in the organization, then which stakeholders would be most likely to support the project? Which stakeholders would find the project threatening or problematic? Why?

2. Do you believe that make-buy decisions would be better, worse, or no different with an ABCM system in place? Why do you reach this conclusion?

3.Do you believe that continuous improvement efforts would be strengthened by such a system? Why or why not?

4.Do you have enough evidence here to decide whether you would support or oppose an ABCM initiative within your company? If so, then explain. If not, then what additional data or information would you need?

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