Business Primary Involved in Health Care: Accounting Report Writing Assignment

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Internal Code: MAS1914
Accounting Report Writing Assignment:
Task:
Chapter 12
You work for a business primary involved in health care, which runs a number of nursing homes for the elderly and has a head office staff consisting of you and two owner –directors> Each of the nursing home has a sister in charge who looks after the day to day running of the nursing home, but the advertising of the service and the overall administration are carried out by one of the directors, while the director look after the billing of the patients and the collection of monies due. The overall profitability of the firm has fallen drastically in the last year and you have been asked to investigate the situation.
Identify what information you would need and what level of detail required in order for you to start your investigation.
Chapter 13
You are director of a credit union and you have been appointed to the remuneration subcommittee. One of your first tasks is to consider a bonus for the general manager. You believe that a bonus should be paid based on performance. The credit union has 10000 members total asset of $50 million, with $40 million in loan to members. It operates four branch locations and a head office and employs a total of 30 people. You are familiar with using KPIs such a return on assets as measure of performance. However, the board of directors has a policy of not aiming to maximise profit as the credit union exists for the benefits of its members. Therefore, you consider it to be inappropriate to use return on assets as a measure of the performance of the general manager.
Required
What other financial and non-financial measures of performance could be used to assess the performance of the general manager.
Question 4
Clarke Ltd manufactures baggy green caps for cricket clubs. For 2015 they have provided the following information
Accountingnursing
Required:
1. Calculate the following:
a. Contribution margin per unit
b. Breakeven point in units and in dollars.
c. The number of units that would need to be sold if the company requires a net profit of $140,000.
d. The number of units sold and total revenue if the company requires a net profit of 25% on sales.
e. Calculate the new breakeven point in units and in dollars if variable manufacturing costs decrease by $1 in total and fixed manufacturing costs increase by $20,000.

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