Performance Assessment: Polly Plates

By
Responsive Centered Red Button

Need Help with this Question or something similar to this? We got you! Just fill out the order form (follow the link below), and your paper will be assigned to an expert to help you ASAP.

Order Form

QUESTION
 
1. Prepare an income statement in reasonably good form for Polly Plates’ 20×0 year. Use the absorption costing format (also known as the “GAAP” or “external financial reporting” format).
2. One of the board members, hearing of the net loss expected for 20×0 at the first board meeting described above, asked whether anyone knew how many plates the company would need to sell to break even. Calculate PPI’s breakeven point (in plates) using 20×0’s cost structure. Recall that a company’s cost structure is its selling price per unit, variable cost per unit, and total fixed cost.
3. Another board member at the 20×0 meeting responded to that query, asking, “Who cares what it takes to make zero net income? I’d like to know what sales would be necessary to make $2 million a year… as we did in the old days! Harrumph!” Calculate the sales (in plates) PPI needed to yield a net income of $2 million, using 20×0’s cost structure.
4. As the discussion about breakeven points and profit planning wound down, an elderly board member awoke from his nap, saw the breakeven charts on the projection screen, and mumbled something about “direct costing.” His granddaughter (also on the board and a recent MBA graduate) responded by saying, “Wait! I think I remember that term. Yes, in fact, you can do a whole income statement using direct costing. In Professor Blatterfitzel’s class, we called it ‘variable costing’ or the ‘contribution margin format income statement,’ or something like that.” Prepare an income statement in reasonably good form for PPI’s 20×0 year using variable costing (also called “direct costing” or “the contribution margin format”).
5. Prepare the GAAP (absorption costing format) income statement in reasonably good form for PPI’s 20×1 year (show the results just as the controller would have … before taxes and Deb’s bonus).
6. Calculate PPI’s 20×1 ending inventory amount (under absorption costing), in both plates and dollars.
7. Prepare PPI’s 20×1 income statement in reasonably good form using variable costing (also called direct costing or contribution margin format costing). Show the net income before taxes and before Deb’s bonus so it is comparable to Robin’s absorption cost net income.
8. In no more than 200 words, write an assessment of Ms. Bett’s performance as president (do not evaluate her performance as a consultant before she became president). In the first sentence, you must state whether you found her performance overall was “excellent,” “average,” or “poor.” Then you should present facts (such as numbers from one or more of the financial statements you created to answer previous requirements) and logical arguments that support your assessment. You may only use facts stated or readily inferred from the case (that is, do not make things up). Support your assessment using those facts and draw logical conclusions from those facts.

Sample Solutions
Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Phasellus hendrerit. Pellentesque aliquet nibh nec urna. In nisi neque, aliquet vel, dapibus id, mattis vel, nisi. Sed pretium, ligula sollicitudin laoreet viverra, tortor libero sodales leo, eget blandit nunc tortor eu nibh. Nullam mollis. Ut justo. Suspendisse potenti.

Get sample solution
Order Now

Sed egestas, ante et vulputate volutpat, eros pede semper est, vitae luctus metus libero eu augue. Morbi purus libero, faucibus adipiscing, commodo quis, gravida id, est. Sed lectus. Praesent elementum hendrerit tortor. Sed semper lorem at felis. Vestibulum volutpat, lacus a ultrices sagittis, mi neque euismod dui, eu pulvinar nunc sapien ornare nisl. Phasellus pede arcu, dapibus eu, fermentum et, dapibus sed, urna.

Morbi interdum mollis sapien. Sed ac risus. Phasellus lacinia, magna a ullamcorper laoreet, lectus arcu pulvinar risus, vitae facilisis libero dolor a purus. Sed vel lacus. Mauris nibh felis, adipiscing varius, adipiscing in, lacinia vel, tellus. Suspendisse ac urna. Etiam pellentesque mauris ut lectus. Nunc tellus ante, mattis eget, gravida vitae, ultricies ac, leo. Integer leo pede, ornare a, lacinia eu, vulputate vel, nisl.
Suspendisse mauris. Fusce accumsan mollis eros. Pellentesque a diam sit amet mi ullamcorper vehicula. Integer adipiscing risus a sem. Nullam quis massa sit amet nibh viverra malesuada. Nunc sem lacus, accumsan quis, faucibus non, congue vel, arcu. Ut scelerisque hendrerit tellus. Integer sagittis. Vivamus a mauris eget arcu gravida tristique. Nunc iaculis mi in ante. Vivamus imperdiet nibh feugiat est.
Ut convallis, sem sit amet interdum consectetuer, odio augue aliquam leo, nec dapibus tortor nibh sed augue. Integer eu magna sit amet metus fermentum posuere. Morbi sit amet nulla sed dolor elementum imperdiet. Quisque fermentum. Cum sociis natoque penatibus et magnis xdis parturient montes, nascetur ridiculus mus. Pellentesque adipiscing eros ut libero. Ut condimentum mi vel tellus. Suspendisse laoreet. Fusce ut est sed dolor gravida convallis. Morbi vitae ante. Vivamus ultrices luctus nunc. Suspendisse et dolor. Etiam dignissim. Proin malesuada adipiscing lacus. Donec metus. Curabitur gravida

How to create Testimonial Carousel using Bootstrap5

Clients' Reviews about Our Services