Calculate the contribution margin per unit for each plant under current production levels

1. This is a group assignment task is worth 60 marks and weights down to 30%. The assignment is to be completed in a team of between 3- 5 students.

2. You are required to consider the following case study and write an executive report using Power Point. Your report should be set out in an appropriate format under the following headings: a. Executive Summary – On one page – provide an overview of the important issues, background, and provide a summary of your findings. (10 marks) b. Analysis – Provide details of the analysis undertaken and the results. All calculations must be shown. Note: - you will be penalized if you provide the wrong answer without any workings of how you arrived at this answer. (30 marks) c. Findings – detail and justify your findings from the analysis. Take care to recognize and describe any limitations. (5 marks) d. Recommendations – detail and justify your recommendation from the analysis. (5 marks) e. Action items/limitations – detail the limitations from the analysis. Identify potential areas for actions to be undertaken by the organization. (5 marks) f. The report must not exceed 10 Power Point Slides and must be in an appropriate format. (5 marks)

3. You are required to complete the cover page that is provided with the assignment and submit this page along with your report. Each team member will receive the same mark.

4. This assignment task will be assessed using the following assessment criteria: a. Communication: The report must be in the appropriate format and contain an effective summation, free from grammatical and spelling errors. b. Calculations: Accurate calculations and in the prescribed format. c. Interpretation: The answers are interpreted and analyzed effectively and are in line with calculations and questions asked. Assume you are the Management Accountant of Cisco Manufacturing Pty Ltd and you have been asked by the Managing Director to prepare a PowerPoint presentation at its next board meeting.

Your report should include the following:

1. Calculate the contribution margin per unit for each plant under current production levels and then under each plants maximum production level. (6 marks)

2. Calculate the break-even volume point for all three plants at the current production levels and at the maximum production levels. (6 marks)

3. Calculate the operating income for all three plants assuming each plant produced 50,000 units per year and all units produced were sold. (6 marks)

4. Calculate and show how the production of 150,000 radiators per year should be allocated between the plants to maximise the operating income for Cisco Manufacturing Pty Ltd assuming all units produced were sold. (12 marks)