25 Sep Relevant Costs And Contribution Analysis
Two-part assignment – All parts must be at least 300 words unless otherwise noted. Please read all attachments and follow ALL instructions.
Part 1: Relevant Costs
Two partners own together a small landscaping business in North Carolina, called Summer Lawn Care. They have been specializing in summer grass seeding, installation, and maintenance. Recently, the partners acquired special technology and know-how for winter grass installations and maintenance. They also added a tree cutting service as recent storms in the area had caused demand for this service to soar. One of the partners insists that the name of the business should change to Lawn and Tree Care, so that it better reflects the range of services and, thus, generates more customer interest, and thus contracts. The second partner wants to keep the old name and argues, “We have already paid for business cards, vehicle paint, signage, and ads in Yellow Pages”. Evaluate the arguments of the two partners. Explain and illustrate their points by identifying the relevant and irrelevant costs for this decision.
Guided Response: In 300 words or more, please, provide your response to the above discussion question. Identify all the costs in the decision process, including explicit costs, implicit costs and sunk costs.
Part 2: Contribution Analysis
Explain what is meant by “contribution analysis”. Carefully define the term and provide examples to illustrate it.
Guided Response: Can you think of a recent example where you had to evaluate the incremental costs and benefits of different options in order to make a decision? In 300 words or more, please, provide your response to the above discussion question.
Required Resources
Text
Please read the following chapters in: Managerial Economics:
Douglas, E. (2012). Managerial Economics (1st ed.) [Electronic version]. Retrieved from https://content.ashford.edu/
· Chapter 5: Production and Cost Analysis
· Chapter 6: Managerial Cost Analysis and Estimation
Recommended Resources
Multimedia
· Apple May Be Exploring Switch From Intel Chips: Video – Bloomberg (n.d.). Bloomberg. Retrieved from http://www.bloomberg.com/video/apple-may-be-exploring-switch-from-intel-chips-FWEGen9nSPmHuFYUpXJVtQ.html
Websites
· Bloomberg (http://www.bloomberg.com)
· Cable News Network (http://www.cnn.com)
· The Economist (http://www.economist.com)
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.