Jet2 Task 4 Competition Bikes management decide to retool and now manufacturing both Titanium and CarbonLite Frames bikes. Competition Bikes was using the Traditional based Costing (TBC) method‚ however the Activity Based Costing (ABC) may give more insight to management and helpful in analyzing the per unit costing of the different types of frames and pinpoint the area of improvement. Also the management wants to know the Breakeven point caused by the potential increase of fixed cost by $5‚000 and
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Competition Bikes Inc. Storyline Managing Capital & Financial Assets 04/12/2014 WGU JET2 Financial Analysis Task 4 - PASSED To: Vice President The following is a summary report to recommend whether Competition Bikes should change its traditional costing method to activity based costing‚ and an analysis of the breakeven point with regards to sales units and dollars for both CarbonLite and Titanium bikes. It also discusses the impacts to the breakeven point. The cost-volume-profit evaluation
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Jason White Financial Analysis JET2 Task 1 February 18‚ 2015 For this task I preformed an analysis of the financials of Competition Bikes‚ Inc. In the following pages I will discuss my findings in detail. I will find weaknesses and strengths as well as indicators of how the company’s financial health is. Also included will be some potential ways to make adjustments to correct the weaknesses. Some of the operational strengths and weaknesses were identified by reviewing the horizontal‚ vertical‚
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Competition Bikes Finical Analysis Dan Petersen WGU – JET2 Finical Analysis Task 4 A. 1. To: Vice President This report has been prepared to argue the case that the company’s current costing method should be changed to the activity based costing method. This report will review; the difference between traditional based costing and activity based costing; traditional split and allocations with activity based costing; and discusses the breakeven point for Competition bikes Inc. with
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based costing systems. This summary will also give you further findings on Competition Bikes‚ Inc. breakeven point when evaluating the sales units and the sales dollars and also the influence direct materials and fixed costs have on the breakeven analysis performed. Costing Method The traditional costing method is a distribution of manufacturing overhead costs to the actual products manufactured. By using this method the factory’s indirect costs are assigned‚ on a scale of volume‚ to the
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FAQs - JET2 Task 3 Here’s Some Task 3 Advice “Here is the method I used for successfully doing task 3 in 3 days and passing it on the first submission” “**ATTEND THE WEBINAR” A1 “I gave an introduction discussing what capital structure is and how it relates to debt vs. equity financing and what maximizes shareholder return and what the goal of the company is in choosing a capital structure approach. I then made my recommendation discussing all approaches for all years using a table with earnings
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Custom Snowboards Inc. Managing Capital & Financial Assets 04/19/2014 WGU JET2 Financial Analysis Task 5‚ Part I - PASSED To: Vice President for Chief Financial Officer (CFO) The following is a summary report is an analysis of the current financial statements of Custom Snowboards Inc. The company wishes to be considered for an extended long term loan for a European expansion. We have arrived at a selection of key financial statement line items‚ conducted a risk assessment‚ and ratios
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using funds from equity or debt (Investopedia‚ 2012). Of course‚ every company must determine its preference on its debt-to-equity ratio and determine which capital structure works best for them. Some approaches to analyzing capital structure are: 1. EBIT – EPS: This analyzes the impact of debt on earnings per share (EPS). Optimizing shareholder’s wealth is the optimum goal and therefore‚ this approach analyzes the high EPS based on an expected range of earnings before income taxes (EBIT). 2. Valuation:
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A1. The highest earnings per common stock share option is the 50% Preferred & 50% Common Stock and it will maximize the shareholder holders return. 12% Bonds 50% Preferred & 50% CS 20% 12% Bonds & CS 40% 12% Bonds & CS 60% 12% Bonds & CS Year 9 0.002 0.027 0.027 0.023 0.017 Year 10 0.009 0.032 0.032 0.028 0.023 Year 11 0.019 0.039 0.038 0.035 0.031 Year 12 0.031 0.048 0.046 0.043 0.04 Year 13 0.042 0.057 0.054 0.052 0.049 Total 0.103 0.203 0.197 0.181 0.16 A1a. During
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based off how well the company is doing. They should not be keeping the salaries the same or increasing if it did not fit in with how well the business was doing. Competition Bikes has to change the way they paying the executives‚ the companies financial strength has to be reviewed before they can determine what the executives are paid. Research and development was an area of concern with the $85‚237 budgeted. In year 6 they ended
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