Marketing Question

Full Answer Section

Slide 5: Financial Benefit Analysis

• Calculate the profit per case at the offered price ($9.50) and the recalculated cost.
• Compare this profit to the profit per case at the regular price ($20) and regular cost ($10).
• Highlight the potential profit even with the lower selling price due to variable cost focus.

Slide 6: Managerial vs. Financial Accounting

• Briefly explain the differences between managerial and financial accounting:
  • Managerial: Focuses on internal decision-making and cost control.
  • Financial: Focuses on external reporting and adherence to accounting standards.
• Emphasize the suitability of a variable cost-focused approach for this specific decision (managerial perspective).

Slide 7: Recommendation for Super Deals Offer

• Clearly state your recommendation: accept the Super Deals offer based on the profitable outcome of the recalculated cost analysis.
• Briefly mention potential benefits beyond profit, such as market expansion and brand awareness.

Slide 8: Conclusion

• Summarize the key points: cost recalculation, profit potential, and alignment with managerial accounting principles.
• Reiterate your recommendation and its benefits for Acme Pickle Company.

Slide 9: Q&A

Supporting Information:

Option 1: Recorded Presentation:

• Record your presentation using Kaltura or another approved software, incorporating the slides and your narration.
• Ensure clear explanations, engaging delivery, and professional presentation style.

Option 2: Report:

• Create a 2-3 page report summarizing the key points covered in the slides.
• Include detailed explanations, calculations, and justifications for your recommendation.
• Use clear headings, concise writing, and professional formatting.

Additional Notes:

• Include relevant financial statements and calculations in the appendix.
• Use at least two APA-formatted references for any external sources used.
• Proofread your presentation and report carefully before submission.

By following these guidelines and incorporating your analysis and insights, you can create a compelling presentation or report that effectively supports your recommendation to management.

Sample Solution

Acme Pickle Company: Super Deals Offer Analysis

Presentation Slides:

Slide 1: Title Slide

• Title: Evaluating the Super Deals Offer: A Cost-Benefit Analysis
• Subtitle: Acme Pickle Company
• Your Name & Date

Slide 2: Introduction

• Briefly introduce Acme Pickle Company and its "Florida's Best" brand.
• Present the Super Deals offer and the initial concerns regarding profitability.
• Highlight your recommendation to recalculate the cost of production.

Slide 3: Cost Breakdown

• Present the current cost report with variable and fixed cost classifications.
• Explain the concept of variable costs (e.g., cucumbers, direct labor) and their relation to production volume.
• Explain the concept of fixed costs (e.g., line supervisors, depreciation) and their independence from production volume.

Slide 4: Recalculating Cost per Case

• Propose excluding fixed costs from the cost per case calculation for the Super Deals offer.
• Explain the justification: fixed costs are already covered by regular production volume, and the offer is incremental.
• Present the recalculated cost per case based on variable costs only (excluding fixed costs).