accounting homework

Step 4: Choose the Profit-Maximizing Output Level

The CEO's next question is, "What level of output would be required to maximize our profit on the Android01?" You have calculated the variable cost-per-unit for different levels of production. From market research, you have a schedule of prices for these levels. The information is summarized in the table below:

A recommendation on output could affect everyone in the company, from management to sales, to the floor manager and assembly line workers! You don't want to get this one wrong so you take some extra time to proof your calculations.

Question 4: Based on profit-maximization analysis, what level of output should you recommend to the CEO?

Before starting your calculations, review materials on profit maximization output.

Submit your Profit-Maximization Output Report and Calculations to the dropbox below. Be sure to show your calculations in Excel and provide a narrative analysis in PowerPoint. Your narrative analysis should summarize the results of your analysis and make recommendations for the benefit of the company.

Before you submit your assignment, review the competencies below, which your instructor will use to evaluate your work. A good practice would be to use each competency as a self-check to confirm you have incorporated all of them in your work.

• 3.1 Identify numerical or mathematical information that is relevant in a problem or situation.

• 3.2 Employ mathematical or statistical operations and data analysis techniques to arrive at a correct or optimal solution.

• 3.3 Analyze mathematical or statistical information, or the results of quantitative inquiry and manipulation of data.

• 3.4 Employ software applications and analytic tools to analyze, visualize, and present data to inform decision-making.

• 10.5 Develop operating forecasts and budgets and apply managerial accounting techniques to support strategic decisions