discussion
250 words
- What managerial decisions are influenced by differential analysis reports? How do these reports help in decision making?
Note: please complete the attachment below as well.
Pr. 24(10)-2B
| Problem 24(10)-2B | ||||||||||||||||||||||||||||||||
| Name: | 0 | |||||||||||||||||||||||||||||||
| Section: | # N-box Incorrects due to blanks COUNTIF(B15:AT24,” “) | |||||||||||||||||||||||||||||||
| 13 | ||||||||||||||||||||||||||||||||
| Score: | 0% | # N-box +B-box corrects COUNTIF(B15:AT24,” “) | ||||||||||||||||||||||||||||||
| 0 | ||||||||||||||||||||||||||||||||
| Key Code: | [Key code here] | Total SUM(AD13:AD15) | ||||||||||||||||||||||||||||||
| Instructions | 13 | |||||||||||||||||||||||||||||||
| Answers are entered in the cells with gray backgrounds. | Percentage =(AD16-AD13-AD14)/AD16 | |||||||||||||||||||||||||||||||
| Cells with non-gray backgrounds are protected and cannot be edited. | 0% | |||||||||||||||||||||||||||||||
| An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. | Notes: | |||||||||||||||||||||||||||||||
| Enter a zero in cells you would otherwise leave blank. | If number-entry box is blank (this would be an incorrect answer for N-boxes), error check returns two spaces, ” “ | |||||||||||||||||||||||||||||||
| If number-entry or blank-entry box is incorrect, returns “*” | ||||||||||||||||||||||||||||||||
| 1. | Differential Analysis | If number-entry or blank-entry box is correct, returns single space, ” “ | ||||||||||||||||||||||||||||||
| Continue with (Alt. 1) or Replace (Alt. 2) Old Machine | Use data verification to set data entry to whole number >= 0, and use drop-downs for lables and names, so that students can’t enter a space in a box and have it counted as correct. | |||||||||||||||||||||||||||||||
| November 8 | Conditional formatting might be used but wasn’t here, to hide some of the error check return symbols. If A1 = “~*”, then font = red, if something else, then font = background color. | |||||||||||||||||||||||||||||||
| Continue with | Replace | Differential Effect | ||||||||||||||||||||||||||||||
| Old Machine | Old Machine | on Income | ||||||||||||||||||||||||||||||
| (Alternative 1) | (Alternative 2) | (Alternative 2) | ||||||||||||||||||||||||||||||
| Revenues: | ||||||||||||||||||||||||||||||||
| Proceeds from sale of old machine | ||||||||||||||||||||||||||||||||
| Costs: | ||||||||||||||||||||||||||||||||
| Purchase price | Mark Sears: Enter all costs as negative amounts. | |||||||||||||||||||||||||||||||
| Annual manufacturing costs (6 yrs.) | ||||||||||||||||||||||||||||||||
| Income (loss) | ||||||||||||||||||||||||||||||||
| The proposal to replace the machine should be | Accounts Receivable | |||||||||||||||||||||||||||||||
| Accounts Payable | ||||||||||||||||||||||||||||||||
| 2. | ||||||||||||||||||||||||||||||||
| [Key essay answer here] |
Sol
| Problem 24(10)-2B | ||||||||||||
| Name: | Solution | |||||||||||
| Section: | ||||||||||||
| Score: | ON | |||||||||||
| Instructions | ||||||||||||
| Answers are entered in the cells with gray backgrounds. | ||||||||||||
| Cells with non-gray backgrounds are protected and cannot be edited. | ||||||||||||
| An asterisk (*) will appear to the right of an incorrect entry. The essay answer will not be graded. | ||||||||||||
| Enter a zero in cells you would otherwise leave blank. | ||||||||||||
| 1. | Differential Analysis | |||||||||||
| Continue with (Alt. 1) or Replace (Alt. 2) Old Machine | ||||||||||||
| November 8 | ||||||||||||
| Continue with | Replace | Differential Effect | ||||||||||
| Old Machine | Old Machine | on Income | ||||||||||
| (Alternative 1) | (Alternative 2) | (Alternative 2) | ||||||||||
| Revenues: | ||||||||||||
| Proceeds from sale of old machine | $ – | $ 12,900 | $ 12,900 | |||||||||
| Costs: | ||||||||||||
| Purchase price | – Mark Sears: Enter all costs as negative amounts. |
(57,000) | (57,000) | |||||||||
| Annual manufacturing costs (6 yrs.) | (74,400) | (20,400) | 54,000 | |||||||||
| Income (loss) | $ (74,400) | $ (64,500) | $ 9,900 | |||||||||
| The proposal to replace the machine should be | accepted | |||||||||||
| 2. | ||||||||||||
| Other factors to be considered include: A. Are there any improvements in the quality of work turned out by the new machine? B. What effect does the federal income tax have on the decision? C. What opportunities are available for the use of the $44,100 of funds ($57,000 less $12,900 proceeds from the old machine) that are required to purchase the new machine? After considering such factors as those listed above, the net cost reduction anticipated over the six-year period may not be sufficient to justify the replacement. For example, if there is an opportunity to invest the $44,100 of additional funds required for the replacement in a project that earns a return of 3% (assumed for illustration), the amount of the return over the six-year period would be $7,938 ($44,100 × 3% × 6). However, this is less than the differential income determined in part (1), suggesting the proposal to replace is still preferred. |
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