Strategic Management Accounting Case Study Homework Help
- July 11, 2017
- Posted by:
- Category: Accounting QA
Best UK USA UAE Australia Canada China Strategic Management Accounting Case Study Homework Help Service Online
‘Nutty Nut’ Candy Coated Chocolate
STRATEGIC MARKET ANALYSIS
You have joined the cross-discipline Strategic Management Committee of the Confectionery Division within Jupiter Australia as the management accounting representative. The key issue facing this top level management committee at the moment is how to improve profitability in several key product categories.
The product currently under discussion is the ‘Nutty Nut’ line of sugar coated chocolates sold by Jupiter through the major supermarket chains in Australia and New Zealand. The product has been a great success story for the Jupiter Confectionery Division however lately it has come under increased price competition and the sales and market share of ‘Nutty Nut’ chocolates have fallen dramatically. The major competition comes from a similar product branded as ‘N&N’s’ which is manufactured by a multinational rival.
The Marketing Department for the Jupiter Confectionery Division has provided the following information about the sugar coated chocolate market during 2013
2013 Market Share:Sugar Coated Chocolates(Aus & NZ)
NuttyNuts 60%
N&N’s 30%
OtherBrands 10%
The Marketing Department advises you that at the end of the 2012 year Nutty Nut’s market share had been 80% and N & N’s had been only 10%. Since that time N & N’s have been advertising heavily and aggressively pricing their product in the market, increasing their market share to the current level of 30%. The marketing department believes that by discounting the wholesale sale price by $0.25 to $2.75, gross unit sales will increase by 20%. The research and development team have identified that by slightly altering the raw material mix a saving of 10% of prime costs can also be made.
As the Management Accounting representative you have provided the Strategic Management Committee with the following breakdown of revenues and costs for the ‘Nutty Nut’ product line for the just completed 2013 year:
Nutty Nut
Total Assets ‘Nutty Nut’ Factory $30m
Total Sales (Volume in Units) 18m
Regular Retail Price (per unit retail price) $3.99
Gross Sales Value Received (per unit wholesale price) $3.20
Supermarket Rebates (per unit) $0.20
Net Sales Value Received (per unit) $3.00
Prime Costs (per unit) $0.75
Other Manufacturing Costs (per unit) $1.25
Logistic Costs (per unit) $0.75
Gross $ Margin (Gross Profit) (per unit) $0.25
Total $ Margin (Gross Profit) $4.5m
% Margin on Net Sales Value 8.33%
% Return on Total Assets (ROTA) 15%
The CEO of Jupiter Confectionery, who is the Chair of the Strategic Committee, advises that even allowing for the 10% reduction in prime costs, discounting the product by $0.25 per unit will mean that the product will no longer achieve the firm’s required return on total assets (ROTA) of 17.5%. ROTA is calculated by dividing Gross Profit by Total Assets and currently sits at 15%. The CEO argues that if this remains the case, the previously successful ‘Nutty Nut’ product line may have to be discontinued.
You advise the Committee that you are aware that the ‘Nutty Nut’ manufacturing facility is currently running at 53% of its practical capacity and that the warehouse facility (logistics) is running at 62% capacity. You are also aware that whilst the ‘Nutty Nut’ product’s Prime Costs are 100% Variable, Other Manufacturing Costs and Logistic Costs are made up of 80% Fixed and 20% Variable cost.
It can be assumed that this cost break-down between variable and fixed costs will hold consistently across the industry (including for the ‘N & N’ competitor). Assume 90% of the predicted ‘Nutty Nut’ unit sales increase is made at the expense of their main competitor ‘N&Ns’ unit sales. Finally, assume that ‘N&N’ costs start out the same as ‘Nutty Nut’ and that the competitors make no immediate competitive adjustment to their offering.
You ask if you can be given time to prepare a report for the Strategic Committee on the cost and profit implications of the proposed changes and resultant increase in sales and production.
(i)Using excel prepare a ‘before and after’ comparative analysis of the revenues and costs of the ‘Nutty Nut’ product line incorporating the 20% predicted sales increase and the 10% predicted savings in prime costs (Ensure you include any impact of the production increase on manufacturing and logistics costs in your analysis).
How it Works?
How it Works?
Step 1:- Want to buy solution for this. Please click on submit your assignment here and then fill all details and please mentioned product code at the end of the case. Product code is extremely important to locate your assignment. You can also mail us by keeping product code as mail subject to besthomewrokhelpers@gmail.com
Step 2:- As soon as we received your details, we will inform you with through email about quotations of the given assignment. Requesting you to please mention your budget. Also ensure our email besthomeworkhelpers@gmail.com should not go into your spam folder.
Step 3:- Once you agree with our price, click on pay now and pay the agreed amount and once we received the payment assignment will be delivered before agreed deadline.
Step 4:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
Features
Our Features for Assignment Help Services
Plagiarism Free Solution
The first and foremost things that we promise to our customer is plagiarism free solution i.e. a complete and unique solution as per customer’s university requirements.
Excellent Customer Care Services
You can feel our responsiveness once you use our service. Our team of excellent and dedicated customer service representatives are always ready to provide best customer care service 24X7 . Just drop a mail to besthomeworkhelpers@gmail.com and you can receive response in just no time.
Multiple Stage Quality Assurance
We design a unique multiple stage quality assurance team to ensure plagiarism free, original, relevant and as per customer’s requirements. We not only give importance to accurate solutions or writing but also we give equal importance to references style too.
Privacy and Confidentiality
We believe in maintaining complete privacy and confidentiality of all our clients. None of the information furnished to us is shared with anyone else.
Our Clients
We receive requests from clients all over the World. Most of our customers are from USA, UK, Australia, Canada, UAE, Muscat, Oman, Qatar, UAE, New-Zealand, France Germany etc.
Related Services
- Strategic management case study help
- Case Study Assignment Help
- Trade finance case study help
- Banking case study assignment help
- Banking case study homework help
- Meaning of case study assignment help
- Child development case study homework help
- Contract law case study homework Help
- Finance accounting case studies homework help
- Company Financial statement analysis case study homework help
- Foreign assignment case study help
- HR case study homework help
- Human resource management case study homework help
- Managerial accounting case study assignment help
- Managerial accounting case study homework help
- Negotiations case study homework help
- Organization behavior case study homework help
- Project management case study homework help
- Financial statement analysis assignment help
- HBS case study assignment help
- Ratio analysis case study assignment help
- Small business case study homework help
- Project finance case studies help
- Healthcare finance case studies homework help
- MBA case study homework help
- Financial analysis business case study homework help
- Harvard business case study homework help
- Business strategy case study homework help
- Business law case study homework help
- Accounting Case Study Help
- Business case study homework help
- Finance case study help
- Corporate Finance case study homework help
- Business process case study assignment help
- Business statistics case study assignment help
(ii) Prepare a brief report (approx. 300 words) for the Strategic Management Committee outlining the key points of your findings. Include some discussion on
a.the likely impact of the changes on the cost and profit structure of Jupiter Confectionery (derived from your answer to (i)).
b.Calculate and discuss the likely impact of the changes on the cost structure of ‘N&N’s’ our main competitor (use Excel).
c.Make a recommendation to the Committee on whether to go ahead with the planned changes. Include any other strategic advice that you consider relevant to the Committee’s decision making.
(Please ensure that your answer adequately addresses ALL of the points above)
Product Code: ACC22
Looking for Strategic Management Accounting Case Study Homework Help, please submit your details here with product code mentioned above.