Managerial Accounting Spring Project - ACCOUNTING 2332...

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ACCOUNTING 2332 COURSE PROJECT SPRING 20131REQUIRED:Read the case and answer the questions belowusing the workspacesprovided.To receive credit you must show your calculations and write your answers inthe spaces provided. We must ask you to handwriteyour answers.Hand your project in to the accounting lab 133MH during lab hourson or before MondayFebruary 25 at 7PM.YOUR NAME________________________________________________YOUR BLACKBOARD USER ID ______________________________________YOUR INSTRUCTOR’S NAME _______________________________________YOUR RECEIPT NUMBER __________________ (lab assistants will give you this)CASE FACTS:Zeus Opticals is a specialist manufacturer of optical instruments. Zeus has recentlyexpanded its core product market of binoculars into making eyepieces for microscopes /telescopes, and screw-on lenses for digital SLR cameras. The firm believes that it makeslittle money selling binoculars and that these new markets have great profit potential.Somewhat to Zeus’s surprise, it finds it tough to make moneywith eyepieces. As of now,the firm appears to be selling the product at a negative profit margin. Yet, Zeus facesintense price pressure in this segment, and thinks that it might have to lower prices by 5%or more to stay competitive. The market for binoculars has been stable for several years,and Zeus expects the trends to continue for the near future. Zeus is most excited aboutentering the market for screw-on lenses for digital cameras. Although current volumesare small (relatively), Zeus believes that there is substantial market potential for thisproduct. Leveraging its excellent reputation for optics and lenses, Zeus believes that itcould reach and sustain two times the current volume of this product. This strategy alsoseems to make sense financially as this product looks like the most profitable of the threelines, per the firm’s accounting records.
ACCOUNTING 2332 COURSE PROJECT SPRING 20132

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Term
Spring
Professor
NEWMAN
Tags
Marketing, Managerial Accounting, Zeus, Photographic lens, COURSE PROJECT SPRING

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