Melissa - Week 8 Assignment - Responsibility Center Presentation

Melissa - Week 8 Assignment - Responsibility Center Presentation

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Unformatted text preview: Click to edit Master subtitle style 9/7/10 Responsibility Center Presentation Melissa Krol ACC 220 Instructor: Milton Robinson Axia College of University of Phoenix 9/7/10 { 4 3 5 E 7 4 8 -D 5 E 7 -4 A 0 E -8 C E A -E 4 A 2 8 A B 5 1 E 7 6 } Incurs costs { 5 1 9 0 7 9 2 9 -5 B E B -4 E C A -A 1 9 B -A F 7 E D 0 A D E 3 9 } s not directly create revenue Cost Center 9/7/10 { 4 D F B 0 5 D 1 -D 4 6 F -4 B E -8 2 4 E -6 B 8 B 2 4 A 4 5 1 C 8 } Production Department { B 6 0 6 A F B 5 -A 1 A D -4 1 8 E -8 D 4 6 -B 2 D A 3 4 E 1 7 9 8 } Service Department 9/7/10 Net income Keep current Replace increase Machine Machine (decrease) Variable Manufacturing Costs $740,000* $600,000** $140,000 New Machine cost 190,000 (190,000) Total $740,000 $790,000 ($ 50,000) ======= ======== ======== Incremental Analysis 9/7/10 Profit Center { 0 8 2 F 3 D D 7 -A 9 0 8 -4 C 1 4 -9 E A-F 0 6 0 5 2 A D F E C E } Incur Costs { 4 C 1 E 6 4 0 8 -9 B 8 C -4 C 0 -B F 1 4 -1 B 0 1 D F 4 6 5 2 8 } Generates revenues 9/7/10...
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Melissa - Week 8 Assignment - Responsibility Center Presentation

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