(i) Develop your written part by answering the six questions given in the case. Each question may be answered in about 150 to 200 words. (50% to the marks)

(ii) Develop a PowerPoint presentation. You have to take one side, either the company ThyssenKrupp or the fired employee. If you decide to represent ThyssenKrupp, then you are the defense lawyer. If you decide to represent the fired mechanic, you are the Plaintiff’s Lawyer. Present your arguments with evidence and supporting matter to the Judge (Raj Mohanty) via a PowerPoint presentation. In a courtroom, the Judge is always addressed as “Me Lord” or “Your Honor”. (50% to the marks) No presentation in the classroom or on Adobe Connect will be needed. Your only chance to convince the judge is through your PowerPoint

. ThyssenKrupp Elevator Canada INTRODUCTION During a lunchroom break, a male employee at ThyssenKrupp decided to take up a dare from a fellow colleague for $100 and the Jackass-like prank was videotaped then posted to YouTube. When it came to the attention of the HR manager and other senior management, the employee was fired for violating company policy. The employee argued in court that the organizational culture allowed such behavior. But would the Ontario Labour Relations Board (OLRB) agree?

BACKGROUND ThyssenKrupp Elevator Canada was subcontracting elevator installation at a construction site in downtown Toronto where a large office building was being built. All the workers on the site, including those from ThyssenKrupp, and the main contractor of the site, PCL Construction, were male and the culture of the workplace was described as a “macho” environment where pranks were played. There were reportedly pictures of women and provocative calendars hanging on walls, as well as signs displaying vulgar humor. There was little concern about these as access to the building was restricted to people involved in the construction project. One of ThyssenKrupp's employees at the site was an elevator mechanic. He and several other employees engaged in what he called “picking” on each other and playing pranks to keep things light at work. They also watched pornographic scenes on a worker's iPod and episodes of the television show Jackass, which features individuals doing stupid activities on dares.

ESCALATION OF PRANK BEHAVIOUR Over a period of a few weeks, the mechanic and other employees performed more and more pranks that copied some of the ones they saw on the Jackass show. Typically these events took place in the basement lunchroom where employees gathered for breaks and meals, to change clothes, and to socialize. Soon, money was being offered on dares to do certain actions. For example, one ThyssenKrupp employee accepted a dare that involved a $60 payment—money collected from fellow employees, including three foremen. The dare involved the employee eating spoiled food found in the common refrigerator of the lunchroom. A couple of weeks after the first dare, the mechanic was observed playing with a stapler in the lunchroom on a break. One of the foremen walked in and jokingly said, “What are you going to do with that? Why don't you staple your nuts to something?” The mechanic jokingly replied that he'd do it “if you get enough money.” Though he claimed it was intended as a joke, word spread within a few hours, and soon $100 was raised among seven other ThyssenKrupp and three PCL employees. Another four people were in the lunchroom later that afternoon watching when the mechanic decided to go ahead with the staple dare. He proceeded to drop his work uniform trousers and staple his scrotum to a wooden plank, which was met by “cheering and high fives,” according to the mechanic. With the mechanic's knowledge, the prank was filmed on video. Included on-camera were all those employees present, wearing full worksite uniforms, PCL logos on hats, and TK shirt patches—all easily identifiable and recorded by a worker who was present that day. The mechanic was advised at a later date that the event was posted on YouTube. Initially, the mechanic did nothing about the YouTube posting but eventually asked for it to be taken off the site. To ensure this was done, the mechanic went back to YouTube searching for the video clip, but couldn't find it. He assumed it had been removed, however, it was not—he just didn't search correctly. In total, the video clip was assessable on YouTube for two weeks, during which time many employees in the construction industry watched it. It was during these two weeks that ThyssenKrupp became aware of the video after the HR department received an email with a link to the video, and several people discussed it with a ThyssenKrupp executive at a construction labor relations conference. Conference participants insisted the employee was from ThyssenKrupp, and they questioned how the company could allow something like that to happen during work hours. At this point, ThyssenKrupp management reviewed the video one more time and decided that the mechanic had violated its workplace harassment policy, which prohibited “practical jokes of a sexual nature which cause awkwardness or embarrassment.” The mechanic was fired for “a flagrant violation” of ThyssenKrupp's harassment policy and risking the company's reputation.

CULTURE AT FAULT Upon being fired from his job, the mechanic filed a grievance with the OLRB. He argued that dismissal was too harsh given the culture of the workplace which was accepting of that type of behavior. He also said no one told him not to do it, no one expressed displeasure, and no one mentioned they were offended. He argued that other employees had done stunts but questioned why he was the only one disciplined for his actions. He also claimed to have never seen the workplace harassment policy, even though it was part of the orientation package. THE DECISION In July 2011, the OLRB found the mechanic's misconduct on the employer's premises, plus his permission to record it, “patently unacceptable in almost any workplace.” The fact that his employer was easily identified in the video clip contributed to the decision. The fact that the mechanic claimed not to have known about the corporate harassment policy was irrelevant—he should have known better. The OLRB also dismissed as irrelevant that no one protested or objected to the prank during the lunch break, which the mechanic argued was “not during work hours.” The court stated that ThyssenKrupp has an interest in preventing such horseplay and stunts in the workplace. They are in a safety-sensitive industry and such employee misconduct places the firm's reputation in jeopardy. The seriousness of the mechanic's misconduct also superseded any other factors, such as his claim of being a good employee with a clean record and the argument around the culture. There was no evidence that the company was aware of other pranks, and his role as the principal offender wasn't diminished by the culture, said the board. In dismissing the mechanic's grievance, the board stated, “If (ThyssenKrupp) employees want to emulate the principles of Jackass by self-abuse, they may be free to do so when they are not on the (employer's) premises and cannot be identified as being associated with (ThyssenKrupp).”

Questions

(1) What corporate values did ThyssenKrupp refer to when deciding to terminate the mechanic? What are the health and safety issues involved here? Do you think an informal work environment is leading towards a lack of strict health & safety policy at the workplace?

(2) Considering that the mechanic claimed that the ThyssenKrupp culture contributed to such behavior, in your opinion, does ThyssenKrupp need to change its corporate culture? If not, why not?

(3) Are there any Tort issues involved here? What other legal issues are involved here? Explain.

(4) Did the Ontario Labour Relation Board (OLRB) accept the defense that organizational culture contributed to the employee behavior? Explain their reasoning. Considering the company’s work environment, what factors need to be considered while updating the company’s health & safety policy?

(5) If this case goes to court, what arguments the Plaintiff’s Lawyer, representing the fired worker, would present before the court?

(6) What would be the line of Defense for the Lawyer of Thyssen Krupp Elevator?

Altec Manufacturing Inc. (Altec) is a company that manufactures and sells a single product, which they call an Altec. For planning and control purposes they utilize a monthly master budget, which is usually developed at least six months in advance of the budget year. Their fiscal year end is December 31. As per the request of the CEO of Altec John Hofmann, you as new controller will be preparing the next budget (January to December 2022). Prior to the task, you received a sales forecast from 2022-2023. As new controller of Altec, Their sales forecast consisted of these few lines: • For the year ended December 31, 2021*: 70,000 units at $160.00 each • For the year ended December 31, 2022: 80,000 units at $160.00 each • For the year ended December 31, 2023: 90,000 units at $160.00 each *Expected sales for the year ended December 31, 2021 are based on actual sales to date and budgeted sales for the duration of the year. Altec’s President felt certain that the marriage wouldn’t last and expected Chris would be back any day. But the end of the year is quickly approaching, and there is still no word from the desert. The President, desperately needing the budget completed, has approached you, a management accounting student, for help in preparing the budget for the coming fiscal year. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1) Sales are seasonal, and sometimes correspond with general holidays. Please see the Sales pattern a below: January 3% February 5% March 6% April 9% Mary 7% June 9% July 10% August 8% September 6% October 9% November 13% December 15% Total 100% 2) From previous experience, management has determined that an ending inventory equal to 38% of the next month’s sales is required to fit the buyer’s demands. 2 3) Because sales are seasonal, Altec must rent an additional storage facility from September to December to house the additional inventory on hand. The only related cost is a flat $28,000 per month, payable at the beginning of the month. 4) The only raw material used in the production of toodles is space-age acrylic (SAA), a compact material that is purchased in powder form. Each product requires 55 kilograms of SAA, at a cost of $0.85 per kilogram. The supplier of SAA tends to be somewhat erratic so Altec finds it necessary to maintain an inventory balance equal to 38% of the following month’s production needs as a precaution against stock-outs. Altec pays for 55% of a month’s purchases in the month of purchase, 25% in the following month and the remaining 20% two months after the month of purchase. The ending balance of raw materials at December 31, 2021 is 33,000 kilograms. 5) Altec expects that any payments made in the month of purchase will be subject to 2%, net/30 terms. The purchase discounts are reported as one metric on their administration department’s balanced scorecard. To provide the information for the balanced scorecard, purchase discounts are included in the selling and administration budget, and are considered a non-cash item. 6) Beginning accounts payable will consist of $227,800 arising from the following estimated direct material purchases for November and December of 2021: SAA purchases in November 2021: $450,500 SAA purchases in December 2021: $306,000 7) Altec’s manufacturing process is highly automated. Employees are paid on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $20.00 per hour before benefits. The employer’s portion of employee benefits adds 20% to the hourly rate. All payroll costs are paid in the period in which they are incurred. Each unit spends a total of 75 minutes in production. 8) Due to the similarity of the equipment in each of the production stages and the company’s concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The variable overhead manufacturing rate is $25.95 per unit, consisting of: Utilities--$12.00; Indirect Materials--$5.00; Plant maintenance--$4.50; environmental fee--$1.95; and Other--$2.50. 9) The expected fixed manufacturing overhead costs below cover the twelve months ended December 31, 2021 and are based on actual costs to date and budgeted costs for the duration of the year. Training and development $ 47,520 Property and business taxes 36,000 Supervisor’s salary 89,400 Amortization on equipment 227,760 Insurance 92,460 Other 109,600 $ 602,740 3 a) The property and business taxes, levied by the municipality covering the calendar year, are paid in one lump sum on June 30 of each year. The expected payment for next year (2022) is $39,000. b) The annual insurance premium is paid at the beginning of April each year, covering the subsequent 12 months, from April 1 of the current year to March 31 of the next year. The premium is expected to go up to $93,300 on April 1, 2022. c) All other “cash-related” fixed manufacturing overhead costs are incurred evenly over the year, paid as incurred, and are not expected to change in 2022. d) Altec uses the straight line method of amortization. 10) In 20x1, the average total cost to manufacture one unit was $93.90 under absorption costing. 11) Selling and administrative expenses (S&A) are known to be a mixed cost; however, there is a lot of uncertainty about what portion is fixed and what is variable. Previous experience has provided the following information: Lowest level of sales: 42,500 units Total S&A Expenses: $1,273,123 Highest level of sales: 87,500 units Total S&A Expenses: $2,493,073 These costs are paid in the month in which they occur. Not included in the above expenses are bad debt expense and the purchases discount. 12) Sales are on a cash and credit basis, with 21% collected during the month of the sale, 42% the following month, and 35% the month thereafter. 2% of sales are uncollectible (bad debt expense). 13) Sales in November and December 2021 are expected to be $1,100,000 and $1,600,000 respectively. Based on the above collection pattern this will result in accounts receivable of $1,617,000 at December 31, 2021 which will be collected in January and February, 2022. 14) During the fiscal year ending December 31, 2022, Altec will be required to make monthly income tax installment payments of $10,000. Outstanding income taxes from the year ended December 31, 2021 must be paid in March 2022. Income tax expense is estimated to be 25% of income before tax. Income taxes for the year ended December 31, 20x2, in excess of installment payments, will be paid in March, 2023. 15) Altec is planning to acquire additional manufacturing equipment for $304,750 cash. 40% of this amount is to be paid in April 2022, the rest, in May 2022. The manufacturing overhead costs shown above already include the amortization on this equipment. 16) Altec. has a policy of paying dividends at the end of each quarter. The president tells you that the board of directors is planning on continuing their policy of declaring dividends of $32,000 per quarter. 17) An arrangement has been made with the local bank that if Altec maintains a minimum balance of $15,000 in their bank account, they will be given a line of credit at a preferred 4 rate of 5% per annum. All borrowings from and repayments to the bank must be in multiples of $1,000 and interest must be paid at the end of each month. All borrowing is considered to occur on the first day of the month, repayments on the last day of the month. Therefore, the amount subject to interest each month is the balance owing at the beginning of the month plus any amounts borrowed at the beginning of the month. Note that any amounts repaid that month do not reduce the amount subject to interest that month because they are assumed repaid on the last day of the month. 18) A listing of the estimated balances in the company’s ledger accounts as of December 31, 2021 is given below (this is the ending balance sheet for 2021): Cash $ 15,680 Accounts receivable 1,617,000 Inventory-raw materials 28,050 Inventory-finished goods 28,170 Prepaid insurance 23,115 Capital assets (net) 1,328,000 $ 3,040,015 Bank loan payable $ 102,000 Accounts payable 227,800 Income tax payable 11,200 Common Shares 1,200,000 Retained earnings 1,610,500 $ 3,04,015

Altec Manufacturing Inc. (Altec) is a company that manufactures and sells a single product, which they call an Altec. For planning and control purposes they utilize a monthly master budget, which is usually developed at least six months in advance of the budget year. Their fiscal year end is December 31. As per the request of the CEO of Altec John Hofmann, you as new controller will be preparing the next budget (January to December 2022). Prior to the task, you received a sales forecast from 2022-2023. As new controller of Altec, Their sales forecast consisted of these few lines: • For the year ended December 31, 2021*: 70,000 units at $160.00 each • For the year ended December 31, 2022: 80,000 units at $160.00 each • For the year ended December 31, 2023: 90,000 units at $160.00 each *Expected sales for the year ended December 31, 2021 are based on actual sales to date and budgeted sales for the duration of the year. Altec’s President felt certain that the marriage wouldn’t last and expected Chris would be back any day. But the end of the year is quickly approaching, and there is still no word from the desert. The President, desperately needing the budget completed, has approached you, a management accounting student, for help in preparing the budget for the coming fiscal year. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1) Sales are seasonal, and sometimes correspond with general holidays. Please see the Sales pattern a below: January 3% February 5% March 6% April 9% Mary 7% June 9% July 10% August 8% September 6% October 9% November 13% December 15% Total 100% 2) From previous experience, management has determined that an ending inventory equal to 38% of the next month’s sales is required to fit the buyer’s demands. 2 3) Because sales are seasonal, Altec must rent an additional storage facility from September to December to house the additional inventory on hand. The only related cost is a flat $28,000 per month, payable at the beginning of the month. 4) The only raw material used in the production of toodles is space-age acrylic (SAA), a compact material that is purchased in powder form. Each product requires 55 kilograms of SAA, at a cost of $0.85 per kilogram. The supplier of SAA tends to be somewhat erratic so Altec finds it necessary to maintain an inventory balance equal to 38% of the following month’s production needs as a precaution against stock-outs. Altec pays for 55% of a month’s purchases in the month of purchase, 25% in the following month and the remaining 20% two months after the month of purchase. The ending balance of raw materials at December 31, 2021 is 33,000 kilograms. 5) Altec expects that any payments made in the month of purchase will be subject to 2%, net/30 terms. The purchase discounts are reported as one metric on their administration department’s balanced scorecard. To provide the information for the balanced scorecard, purchase discounts are included in the selling and administration budget, and are considered a non-cash item. 6) Beginning accounts payable will consist of $227,800 arising from the following estimated direct material purchases for November and December of 2021: SAA purchases in November 2021: $450,500 SAA purchases in December 2021: $306,000 7) Altec’s manufacturing process is highly automated. Employees are paid on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $20.00 per hour before benefits. The employer’s portion of employee benefits adds 20% to the hourly rate. All payroll costs are paid in the period in which they are incurred. Each unit spends a total of 75 minutes in production. 8) Due to the similarity of the equipment in each of the production stages and the company’s concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The variable overhead manufacturing rate is $25.95 per unit, consisting of: Utilities--$12.00; Indirect Materials--$5.00; Plant maintenance--$4.50; environmental fee--$1.95; and Other--$2.50. 9) The expected fixed manufacturing overhead costs below cover the twelve months ended December 31, 2021 and are based on actual costs to date and budgeted costs for the duration of the year. Training and development $ 47,520 Property and business taxes 36,000 Supervisor’s salary 89,400 Amortization on equipment 227,760 Insurance 92,460 Other 109,600 $ 602,740 3 a) The property and business taxes, levied by the municipality covering the calendar year, are paid in one lump sum on June 30 of each year. The expected payment for next year (2022) is $39,000. b) The annual insurance premium is paid at the beginning of April each year, covering the subsequent 12 months, from April 1 of the current year to March 31 of the next year. The premium is expected to go up to $93,300 on April 1, 2022. c) All other “cash-related” fixed manufacturing overhead costs are incurred evenly over the year, paid as incurred, and are not expected to change in 2022. d) Altec uses the straight line method of amortization. 10) In 20x1, the average total cost to manufacture one unit was $93.90 under absorption costing. 11) Selling and administrative expenses (S&A) are known to be a mixed cost; however, there is a lot of uncertainty about what portion is fixed and what is variable. Previous experience has provided the following information: Lowest level of sales: 42,500 units Total S&A Expenses: $1,273,123 Highest level of sales: 87,500 units Total S&A Expenses: $2,493,073 These costs are paid in the month in which they occur. Not included in the above expenses are bad debt expense and the purchases discount. 12) Sales are on a cash and credit basis, with 21% collected during the month of the sale, 42% the following month, and 35% the month thereafter. 2% of sales are uncollectible (bad debt expense). 13) Sales in November and December 2021 are expected to be $1,100,000 and $1,600,000 respectively. Based on the above collection pattern this will result in accounts receivable of $1,617,000 at December 31, 2021 which will be collected in January and February, 2022. 14) During the fiscal year ending December 31, 2022, Altec will be required to make monthly income tax installment payments of $10,000. Outstanding income taxes from the year ended December 31, 2021 must be paid in March 2022. Income tax expense is estimated to be 25% of income before tax. Income taxes for the year ended December 31, 20x2, in excess of installment payments, will be paid in March, 2023. 15) Altec is planning to acquire additional manufacturing equipment for $304,750 cash. 40% of this amount is to be paid in April 2022, the rest, in May 2022. The manufacturing overhead costs shown above already include the amortization on this equipment. 16) Altec. has a policy of paying dividends at the end of each quarter. The president tells you that the board of directors is planning on continuing their policy of declaring dividends of $32,000 per quarter. 17) An arrangement has been made with the local bank that if Altec maintains a minimum balance of $15,000 in their bank account, they will be given a line of credit at a preferred 4 rate of 5% per annum. All borrowings from and repayments to the bank must be in multiples of $1,000 and interest must be paid at the end of each month. All borrowing is considered to occur on the first day of the month, repayments on the last day of the month. Therefore, the amount subject to interest each month is the balance owing at the beginning of the month plus any amounts borrowed at the beginning of the month. Note that any amounts repaid that month do not reduce the amount subject to interest that month because they are assumed repaid on the last day of the month. 18) A listing of the estimated balances in the company’s ledger accounts as of December 31, 2021 is given below (this is the ending balance sheet for 2021): Cash $ 15,680 Accounts receivable 1,617,000 Inventory-raw materials 28,050 Inventory-finished goods 28,170 Prepaid insurance 23,115 Capital assets (net) 1,328,000 $ 3,040,015 Bank loan payable $ 102,000 Accounts payable 227,800 Income tax payable 11,200 Common Shares 1,200,000 Retained earnings 1,610,500 $ 3,04,015

WHAT DO YOU MEAN BY "EXTERNAL SOURCE MENTIONED" PLAESE TELL ME SPECIFICALLY!!

Instructions: Read the case study, The Boy with No Restraint, on pages 137-139 in the textbook. Then complete the following sections of the diagnostic report. This assignment should be no more than 5 pages long

Client strengths: All clients have strengths. What are these client’s strengths and how could they benefit his recovery and continued good mental health?

Client limitations: What potential limitations does this client possess in terms of his recovery and continued good mental health?

Differentials: List three differentials for each disorder you are considering, why you considered it, and why you rejected it. Your differentials should be rational, not random. For example, do not use Alcohol Use Disorder as a differential when the diagnosis is Major Depressive Disorder. The client should exhibit some symptoms of the disorder you use as a differential, but not enough to qualify for the diagnosis.

Diagnosis: List all DSM-V diagnoses and specifiers for the client in the case. Some will have only one disorder, others will have multiple diagnoses.

Rationale for diagnosis: Looking at the DSM-V criteria for each final diagnosis you select, provide your rationale for selecting that diagnosis.

Case 2 The Boy With No Restraint

Sam is a nine-year-old African-American male who is new to a school that offers educational services for children who can no longer perform in an ordinary school setting. He came from an elementary school where he attended a special education program. He was referred to the specialized school because he continued to exhibit significant behavioral, social, emotional, and academic difficulties.

The prior public elementary school’s psychological report stated that Sam spent a majority of his time out of the classroom, either on suspension or in counseling sessions because of his behavior. The report also stated that he required physical restraint on a number of occasions and was recently so aggressive and dangerous that the school filed a complaint with the court asserting that he was out of control both at home and in school. No further information was available about the outcome of this referral to the courts, nor about the specifics of the behavior that warranted such a referral.

Sam lives with his mother, his three-year-old brother, paternal great-grandmother, and uncle in his great-grandmother’s home. The family recently moved from the home of Sam’s grandmother after a heated argument between Sam’s mother and her own mother. This is the third move and Sam’s fourth school in just three years. Sam’s father was shot to death a year ago (his mother was no longer with him at the time), and he has no contact with his father’s family except for his paternal great-grandmother. Sam did have a relationship with his paternal grandmother, but she passed away six months ago.

Sam’s mother completed the 11th grade, is currently unemployed, and collects Supplemental Security Income. It is unclear why Sam’s mother receives such assistance. Sam also has a 12-year-old half brother and a 10-year-old half sister. All the children have the same mother but different fathers, and the older children live with their paternal relatives.

Sam’s family had home-based services to assist with the difficulties they were experiencing, but the services were terminated several months ago because the agency lost all contact with Sam’s mother. The home-based worker stated her belief that Sam’s mother may have started a new relationship, and that in the past she has allowed her relationships with men to take away from her time with her children. The worker also stated that the unstable living situation and Sam’s mother’s mental state (which she believes may be persistent depressive disorder) make it difficult to work with the family on a consistent basis. Through the home-based services agency, Sam was connected with mental health counseling, but his attendance and participation were sporadic.

About a year ago, Sam took the Woodcock Johnson tests, which indicated that his reading, writing, and math skills were significantly delayed for his age, IQ, and educational level. His academic achievement is poor because of these delays. Because of his refusal to participate in a number of the tests, his IQ score could not be accurately identified, but the examiner estimated it to be in the range of 74 to 87.

Since the beginning of the school year Sam has continued to exhibit aggressive and dangerous behaviors. In a meeting with the behavior staff director of the school, the social work intern learned that Sam will have to be searched daily because of his many threats of bringing a knife or gun to school to kill staff. Sam has had to be physically restrained by staff at least a dozen times. The director stated that she would never restrain Sam alone and that it takes two to three staff to do so safely. In this same meeting, the director stated that Sam has attempted to stab staff with pencils and thumbtacks grabbed from hallway bulletin boards.

In locked restraint, Sam will kick the door and scream out obscenities. According to incident reports, Sam has spit at, lunged at, and attacked staff and has even tried biting. He tends to blame others for his behavior (“I’m in support because [staff member] said a bad word to me.”). He neither shows remorse for his behavior nor empathy toward people he has been angry with.

Sam’s teacher reports that he often has difficulty transitioning from one location to another or from one assignment to another. Sam refuses to complete his school assignments and will not accept redirection from his teacher. He often becomes verbally disrespectful toward her, but she reports he has not yet been physically aggressive. She does report that he often destroys property (ripping papers, breaking pencils, turning over chairs and desks) when upset and is known for tearing up his school worksheets when he does not want to work on them.

Sam currently spends a significant amount of time out of class because of his behaviors. He is falling behind in class work because of his absence from lessons and his refusal to participate. Not surprisingly, Sam doesn’t have friends because other children are scared of his out-of-control behaviors.

Sam’s mother is difficult to contact, and she doesn’t return telephone calls in a timely manner. She is guarded about sharing personal information. She attended the most recent individualized educational plan (IEP) meeting and reports that since Sam was a young child, she has seen similar behaviors at home. When Sam gets frustrated, he becomes verbally and physically abusive toward her.

Sam’s mother states that she has sought outside help to control Sam’s behavior. She attempted mental health counseling, but discontinued services because he refused to speak. Sam’s mother says that she is overwhelmed and has tried every punishment—spanking, sending him to his room, taking away privileges—but that none of her efforts has been successful in changing his behavior. She says that he does not seem depressed to her, just angry. Sam’s mother states that she has also called Juvenile Court to relinquish Sam. She was told to come in to complete the intake process but did not do so.

Sam presents as a well-dressed and well-groomed young boy. When he is not upset, he is engaging and very polite. He states that he enjoys coming to the sessions with the social work intern, and he plays games cooperatively, though with high energy, during these times. He shows particular interest in sports, especially basketball. He doesn’t bring up his deceased father or other aspects of his family life and shies away from questions about them, although he admits to feeling “sad” about his father’s and his grandmother’s deaths. He denies, however, that he is sad in general. He says he has not been sexually or physically abused, but says that in the past his mother and a couple of her boyfriends have “whipped” him but not left marks. Sam’s most recent physical examination, performed a year ago, confirms that he is in good health and particularly noted that he has a good appetite.

Information:

Altec Manufacturing Inc. (Altec) is a company that manufactures and sells a single product, which they call an Altec. For planning and control purposes they utilize a monthly master budget, which is usually developed at least six months in advance of the budget year. Their fiscal year end is December 31. As per the request of the CEO of Altec John Hofmann, you as new controller will be preparing the next budget (January to December 2022). Prior to the task, you received a sales forecast from 2022-2023. As new controller of Altec, Their sales forecast consisted of these few lines: • For the year ended December 31, 2021*: 70,000 units at $160.00 each • For the year ended December 31, 2022: 80,000 units at $160.00 each • For the year ended December 31, 2023: 90,000 units at $160.00 each *Expected sales for the year ended December 31, 2021 are based on actual sales to date and budgeted sales for the duration of the year. Altec’s President felt certain that the marriage wouldn’t last and expected Chris would be back any day. But the end of the year is quickly approaching, and there is still no word from the desert. The President, desperately needing the budget completed, has approached you, a management accounting student, for help in preparing the budget for the coming fiscal year. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1) Sales are seasonal, and sometimes correspond with general holidays. Please see the Sales pattern a below: January 3% February 5% March 6% April 9% Mary 7% June 9% July 10% August 8% September 6% October 9% November 13% December 15% Total 100% 2) From previous experience, management has determined that an ending inventory equal to 38% of the next month’s sales is required to fit the buyer’s demands. 2 3) Because sales are seasonal, Altec must rent an additional storage facility from September to December to house the additional inventory on hand. The only related cost is a flat $28,000 per month, payable at the beginning of the month. 4) The only raw material used in the production of toodles is space-age acrylic (SAA), a compact material that is purchased in powder form. Each product requires 55 kilograms of SAA, at a cost of $0.85 per kilogram. The supplier of SAA tends to be somewhat erratic so Altec finds it necessary to maintain an inventory balance equal to 38% of the following month’s production needs as a precaution against stock-outs. Altec pays for 55% of a month’s purchases in the month of purchase, 25% in the following month and the remaining 20% two months after the month of purchase. The ending balance of raw materials at December 31, 2021 is 33,000 kilograms. 5) Altec expects that any payments made in the month of purchase will be subject to 2%, net/30 terms. The purchase discounts are reported as one metric on their administration department’s balanced scorecard. To provide the information for the balanced scorecard, purchase discounts are included in the selling and administration budget, and are considered a non-cash item. 6) Beginning accounts payable will consist of $227,800 arising from the following estimated direct material purchases for November and December of 2021: SAA purchases in November 2021: $450,500 SAA purchases in December 2021: $306,000 7) Altec’s manufacturing process is highly automated. Employees are paid on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $20.00 per hour before benefits. The employer’s portion of employee benefits adds 20% to the hourly rate. All payroll costs are paid in the period in which they are incurred. Each unit spends a total of 75 minutes in production. 8) Due to the similarity of the equipment in each of the production stages and the company’s concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The variable overhead manufacturing rate is $25.95 per unit, consisting of: Utilities--$12.00; Indirect Materials--$5.00; Plant maintenance--$4.50; environmental fee--$1.95; and Other--$2.50. 9) The expected fixed manufacturing overhead costs below cover the twelve months ended December 31, 2021 and are based on actual costs to date and budgeted costs for the duration of the year. Training and development $ 47,520 Property and business taxes 36,000 Supervisor’s salary 89,400 Amortization on equipment 227,760 Insurance 92,460 Other 109,600 $ 602,740 3 a) The property and business taxes, levied by the municipality covering the calendar year, are paid in one lump sum on June 30 of each year. The expected payment for next year (2022) is $39,000. b) The annual insurance premium is paid at the beginning of April each year, covering the subsequent 12 months, from April 1 of the current year to March 31 of the next year. The premium is expected to go up to $93,300 on April 1, 2022. c) All other “cash-related” fixed manufacturing overhead costs are incurred evenly over the year, paid as incurred, and are not expected to change in 2022. d) Altec uses the straight line method of amortization. 10) In 20x1, the average total cost to manufacture one unit was $93.90 under absorption costing. 11) Selling and administrative expenses (S&A) are known to be a mixed cost; however, there is a lot of uncertainty about what portion is fixed and what is variable. Previous experience has provided the following information: Lowest level of sales: 42,500 units Total S&A Expenses: $1,273,123 Highest level of sales: 87,500 units Total S&A Expenses: $2,493,073 These costs are paid in the month in which they occur. Not included in the above expenses are bad debt expense and the purchases discount. 12) Sales are on a cash and credit basis, with 21% collected during the month of the sale, 42% the following month, and 35% the month thereafter. 2% of sales are uncollectible (bad debt expense). 13) Sales in November and December 2021 are expected to be $1,100,000 and $1,600,000 respectively. Based on the above collection pattern this will result in accounts receivable of $1,617,000 at December 31, 2021 which will be collected in January and February, 2022. 14) During the fiscal year ending December 31, 2022, Altec will be required to make monthly income tax installment payments of $10,000. Outstanding income taxes from the year ended December 31, 2021 must be paid in March 2022. Income tax expense is estimated to be 25% of income before tax. Income taxes for the year ended December 31, 20x2, in excess of installment payments, will be paid in March, 2023. 15) Altec is planning to acquire additional manufacturing equipment for $304,750 cash. 40% of this amount is to be paid in April 2022, the rest, in May 2022. The manufacturing overhead costs shown above already include the amortization on this equipment. 16) Altec. has a policy of paying dividends at the end of each quarter. The president tells you that the board of directors is planning on continuing their policy of declaring dividends of $32,000 per quarter. 17) An arrangement has been made with the local bank that if Altec maintains a minimum balance of $15,000 in their bank account, they will be given a line of credit at a preferred 4 rate of 5% per annum. All borrowings from and repayments to the bank must be in multiples of $1,000 and interest must be paid at the end of each month. All borrowing is considered to occur on the first day of the month, repayments on the last day of the month. Therefore, the amount subject to interest each month is the balance owing at the beginning of the month plus any amounts borrowed at the beginning of the month. Note that any amounts repaid that month do not reduce the amount subject to interest that month because they are assumed repaid on the last day of the month. 18) A listing of the estimated balances in the company’s ledger accounts as of December 31, 2021 is given below (this is the ending balance sheet for 2021): Cash $ 15,680 Accounts receivable 1,617,000 Inventory-raw materials 28,050 Inventory-finished goods 28,170 Prepaid insurance 23,115 Capital assets (net) 1,328,000 $ 3,040,015 Bank loan payable $ 102,000 Accounts payable 227,800 Income tax payable 11,200 Common Shares 1,200,000 Retained earnings 1,610,500 $ 3,04,015

Question:

Prepare a budgeted income statement and a budgeted statement of r etained earnings for the year ended December 31, 2022, using absorption costing.

Prepare a budgeted balance sheet as at December 31, 2022.

1. Mark your confusion. 2. Show evidence of close reading. 3. Write a 1+ page reflection.

Trump Could Name His Supreme Court Pick in Days — and Says It Will Be a Woman Source: Janet Hook, Jennifer Haberkorn, Jie Jenny Zou, Los Angeles Times, September 20, 2020 The push for quick action on a successor for the late Supreme Court Justice Ruth Bader Ginsburg gathered steam Saturday, as President Trump said that he expected to announce his choice this week and that it would be a woman. Early Saturday, Trump on Twitter called on the Senate to act “without delay.” “We want to respect the process. I think it’s going to go very quickly, actually,” he said to reporters just one day after the 87-year-old justice died from complications of pancreatic cancer. “I think we’ll have a very popular choice, whoever that may be.” Trump said he had a “short list” of contenders. He did not name names, but a leading candidate to replace Ginsburg is U.S. Circuit Judge Amy Coney Barrett, a former law clerk for the late Justice Antonin Scalia and a longtime law professor at the University of Notre Dame. Trump was moving to nominate a woman to the court at a time when his 2020 reelection bid is faring especially poorly among female voters. At one point in a campaign rally in the battleground state of North Carolina on Saturday, he asked the crowd whether they wanted him to nominate a man or woman. Democratic presidential nominee Joe Biden has helped expand the gender gap in his favor by choosing Sen. Kamala Harris of California as his running mate. Biden has promised to name a Black woman to the Supreme Court. Ginsburg’s death leaves just two women on the court — Justices Sonia Sotomayor and Elena Kagan. The first and only other woman to serve on the court was Sandra Day O’Connor, who was nominated by President Reagan in 1981 and retired in 2006. Trump’s push for quick action on a nominee is politically risky for some in his own party. In a sign of the complicated politics of the Supreme Court debate, Republicans have begun to split over whether to back the president’s push for quick action. Trump won an important ally when Sen. Lindsey Graham (R-S.C.), chairman of the Judiciary Committee, which will hold hearings on the nomination, said Saturday that he would support “any effort to move forward” on a nomination. That statement by Graham — who is in his own tough reelection fight — was a reversal of the senator’s own position in 2016, when Republican leaders refused to hold hearings on President Obama’s nominee. Graham said then that he opposed any effort to fill a court vacancy during a presidential election year. And in October 2018, he said, “If an opening comes in the last year of President Trump’s term and the primary process has started, we’ll wait till the next election.” But one of the Senate’s most vulnerable Republicans facing reelection this year, Sen. Susan Collins of Maine, put herself bluntly in opposition to the president’s wishes. “I do not believe that the Senate should vote on the nominee prior to the election,” she said. “In fairness to the American people, who will either be reelecting the president or selecting a new one, the decision on a lifetime appointment to the Supreme Court should be made by the president who is elected on Nov. 3.” Looming over Republicans as they decide how to handle the issue is Ginsburg’s dying wish, conveyed by her granddaughter. “In some of her final moments with her family, she shared her fervent wish to ‘not be replaced until a new president is installed,’” Harris wrote in a tribute Friday night. “We will honor that wish.” Trump’s push, which is backed by Senate Majority Leader Mitch McConnell (R-Ky.), sets the stage for a political clash that seems likely to dominate both Capitol Hill and the presidential campaign for the six weeks until election day. Still, the prospect of Trump making another Supreme Court appointment produced a fundraising bonanza for Democrats — including a group raising money to unseat McConnell, who is up for reelection 1. Mark your confusion. 2. Show evidence of a close reading. 3. Write a 1+ page reflection. this year. In less than 24 hours after the news broke, the “Get Mitch Fund” raised $12 million. Before Friday, its total fundraising haul has been $3.5 million. In a move that made him a hero of conservative Republicans and laid the groundwork for Trump to leave a big mark on the court, McConnell in 2016 refused to allow the Senate to consider Judge Merrick Garland, Obama’s pick to replace the conservative Scalia, eight months before the election. The Senate never held a hearing, let alone a vote, on the nomination. Hours after the news of Ginsburg’s death, McConnell announced Friday that the Senate would vote on Trump’s nominee, but pointedly did not say when that would happen. Typically it takes several months to vet and hold hearings on a Supreme Court nominee, and time is short ahead of the election. Under the rules of the Senate, if McConnell has at least 50 senators ready to support a Trump nominee, there is little Democrats can do to stop it besides delay. But there is a significant question of whether McConnell will have those votes. Collins’ statement opposing a preelection vote was a significant defection from one of the Senate’s few relatively centrist Republicans. She is facing the toughest reelection of her career this year in large part because her cross-party appeal eroded after she backed Trump’s Supreme Court nominee Brett M. Kavanaugh. But she runs a risk of alienating the Trump-backing Republicans she needs to win in Maine by saying the court vacancy should be filled by whomever wins the Nov. 3 election. Asked about Collins’ statement Saturday, Trump told reporters, “I totally disagree with her.” Sen. Lisa Murkowski (R-Alaska) had already said she would not vote to confirm a nominee this close to an election. “I would not vote to confirm a Supreme Court nominee. We are 50-some days away from an election,” she told Alaska Public Radio on Friday before Ginsburg’s death was announced. Another vulnerable Republican whose position is in doubt is Sen. Cory Gardner of Colorado. Also under scrutiny: Sen. Mitt Romney of Utah, who besides Murkowski has been one of the few Republicans in the chamber willing to defy Trump. And there is speculation on how the senators who value the Senate as an institution — such as retiring Sens. Lamar Alexander (R-Tenn.) or Pat Roberts (RKan.) — would vote. Other Republicans facing tough election fights — Sens. Thom Tillis of North Carolina, Martha McSally of Arizona, Joni Ernst of Iowa and Kelly Loeffler of Georgia — have already rallied to Trump’s call for a vote on his nominee. One option would be for McConnell to postpone the vote into a lame-duck session — when the existing Congress would meet after election day before the new Congress is sworn in. Senators like Collins up for reelection might then be less subject to political cross-pressures between the need to appeal both to Trump supporters and to swing voters. But a lame-duck session would be rife with risks. Any GOP senators who lose their bid for reelection might be less willing to bow to the president’s wishes if they thought it ran counter to the message their voters just sent — especially if Trump is also not reelected. On the other hand, lame-duck senators might feel more free to put another conservative on the Supreme Court, knowing that they won’t face voters again.

Possible Response Questions: • What are your thoughts about President Trump’s plan to fill the open Supreme Court seat before the election? Explain. • Pick a word/line/passage from the article and respond to it. • Discuss a “move” made by the writer in this piece that you think is good/interesting. Explain.

Small Business Management

QUESTION:

What will be the evaluation for the proposed low-cost marketing activities for enhancing the generation of the future bookings and the brand awareness of this small business?

Critically assess.

CASE STUDY

The children's party market is no jelly and trifling matter. "It's a huge industry," Tim Jenkins writes after his interview with Amanda Frolich from

Amanda's Action Kids. According to Frolich, "People spend an absolute fortune on their children's birthday parties and fortunately the recession hasn't affected our business."

Like Paul Lindley, founder of Ella's Kitchen, who used his parenting experience to launch a successful start-up, the party business with low barriers-toentry sees numerous parent small business concepts. Michelle Hill incorporated her own party business called The Land of Make-Believe after spending hours creating props, themed food, and thinking up games suitable for her five-year-old son's shared birthday party. This birthday spectacular experience helped her identify a clear gap in the market.

According to Tim Jenkins, a modest £50 party spend per UK child equates to an annual £35 million for a single school-year group. With £250 not

untypical for an outsourced party service, it is easy to value the industry in the hundreds of millions.

The Land of Make-Believe party concepts include themes for cheerleaders, pirates, and fairies; cowboys and Indians; witches and wizards; Fairy Godmother, Teddy Bear picnic, glamor, and Grease the musical with Pink Ladies and T-Birds. Party concepts that tend to appeal more to boys, perhaps relying less on dressing up and dancing, include club energy sports, go-karting, football, army games, reptiles and pets, and fire engine-themed parties. Leisure venues also offer some stiff competition with swimming pool visits, laser quest, bowling, cinema, and restaurant visits also popular. Business Model Essentials Successful party concepts need a certain "wow" factor that is popular with the children, but also satisfies parents' social needs too. Thus, it is important to also consider appropriate services for parents. Maslow's hierarchy of needs framework perhaps offers some useful cues: shelter, comfort, psychological self-actualization—be that social linger space, self-service hot beverages, a glass of wine, or a latte bar. Party providers need to balance novelty with tried and tested formulas, perhaps offering evolving theme linkages that might anticipate new film releases, particularly sequels. They look to reduce parental hassle with branded off-the-shelf invitation cards and party bags that appeal particularly to cash-rich, often time-poor, parents. Entrepreneur.com neatly summarizes the party service offering: "You'll plan the theme, provide costumes (unless guests arrive wearing their own), décor, food, favors and other assorted goodies, entertainment, and clean up afterward so parents can enjoy the festivities instead of running themselves ragged."

The business model usually has relatively low start-up costs—a website and a telephone number will generally suffice. Wardrobe, props, and base supplies are not insignificant items and should be carefully considered in financial planning. There is some wide variation in the complexity of offerings in the sector from a light touch and self-contained entertainer magician or comedian whose equipment might be limited to a costume, a music system, and some props that fit into a large suitcase or two to the full-service party-planning-solution provider offering a venue, full catering, the all-important candle-covered cake, decorations, and party bags. Three core components are required for a successful party operation, namely venue, catering, and entertainment. Fixed costs can be kept low, but are dependent on avoiding the purchase of a specialized vehicle and/or long-term premises by using a client-arranged venue. Children's party planning is clearly not a job for someone craving regular Monday through Friday, 9 a.m. to 5 p.m. hours. The ability to successfully interact with children and their parents, balancing controlled fun and calm authoritativeness, is particularly important but often rather taken for granted.

Marketing Communication Angles

A reputation for running successful parties is crucial to stimulate positive word-of-mouth referrals via parental social networks, accentuated by frequent contact at school pick-ups and drop-offs, but also on social media, and in particular parenting website communities such as mumsnet.com, which offers local listings, discussion boards, and advice-based content. In addition to successfully hosting enjoyable parties, which should drive positive referrals, a number of low-cost marketing activities can be implemented to help generate future bookings such as

-      Arranging to share a business card or small colour flyer via the party bag that is often given to departing guests. -     Posting flyers at local clubs and church halls.

-      Advertising in directories (telephone and web).

-      Donating a free party to a school/community charity auction.

-      Writing advertorial content accompanied by strong images in the local press (note parental permission and ethical issues around publishing photos of children).

-      Creating a website and social media presence on key sites.

-      Performing at community group/school events.

-      Printing car stickers to build brand awareness and share web and telephone contacts.

Rugged Earth Adventures

One ex-army officer's start-up inspiration led to a birthday party business centered on a military outdoor adventure theme. Having experimented with a number of temporary locations, the business finally settled on a large piece of underutilized agricultural land that comprises a mix of scrub land, combined with lines of commercially unsuccessful shrubs and trees.

The customer segment that this business proposition appeals to is mostly parents of boys—approximately 75 percent of participants are male, aged between 6 and 10 years. The children participate in a two-hour party that sees them run around outside in a natural environment. Issued with a foam bullet Nerf gun and protective glasses, participants are initially put into two teams, jungle versus desert, utilizing authentic British army terminology. A second game, the less frenetic snipers-and-seekers, is a form of hide-and-seek using realistic camouflage costumes. Then the young people are carefully instructed on how to thoroughly cook their own sausage, which is served as a hot dog, and the party concludes with toasted marshmallows. During one of the well-timed rest periods, a picnic basket is offered to the participants around the campfire with a variety of foods—an array that is low in chocolate and big on fruit and vegetables, which is appealing to parents, but it also includes less healthy but popular cupcakes and crisps. With overprotective parents, toy guns that fire projectiles, and an open fire, the safety briefing is taken very seriously and uses a highly authoritative army style. Children are regularly reminded about safe behavior requirements around the fire pit, particularly when wearing flammable costumes. Compliant use of safety glasses is paramount, with regular and direct reinforcement of the safety rules taking place. Hosting and supervising parents are made to feel at ease, provided with access to self-service hot and cold drinks and a place to perch. An informal satisfaction polling takes place just prior to the end around the campfire; positive responses are anticipated, thanks to a fairly simple formula that is well executed. The opportunity afforded to parents to relax while watching a group of children enjoy a totally stress-free afternoon is actually quite enjoyable. The business income comes predominantly from weekend parties, with the current site offering a capacity of three or possibly four parties per day. Each party can entertain 10 to 24 young people and costs between £120 and £295 (£12 to £20/child, excluding cake and party bags, which are £5 per child extra). Activity days, attractive for dual working parents, are also offered during the Easter and summer school holidays, priced at £26 to £34 per day. The revenue generated covers operating costs after a very short operational period.

Fancy Millwork has a factory that produces custom kitchen cabinets. It has multiple product lines. Materials and labor for the cabinets are determined by each job. To simplify the assignment, we will assume the following average costs. The company estimates that it will have 32,000 direct labor hours in total for the kitchen cabinets. The materials include $2,000 for the wood and other materials on a per job basis. It requires 40 hours of labor on average for a custom kitchen. The hourly rate is $10. The sales price will be set at a markup of 80%. It assumes 800 units are sold on average per year. A breakdown of estimated yearly costs related to the kitchen cabinets follows. Please note that the amounts are per year unless identified otherwise: Salaries- office & administrative $ 400,000 Salaries for factory supervisors and janitors $ 200,000 Office Rent $ 90,000 Factory Rent $ 80,000 Office Utilities and Misc office expenses(based on units sold) $ 20,000 SalesTravel(based on units sold) $ 24,000 Insurance - office $ 14,000 Depreciation - office equipment $ 45,000 Depreciation for factory equipment $ 70,000 Advertising $ 15,000 Sales commissions(based on units sold) $ 50,000 Factory Property taxes $ 10,000 Maintenance for factory equipment $ 80,000 QUESTIONS: 1. Please identify the following classifications for all costs above: variable and fixed costs; product and period costs. I would recommend that you show a schedule for each area on a yearly basis. For the variable costs, also, show them on a per unit (800 units) How does a company identify each type of cost? Can a cost classification be changed over time? If yes, explain how and give an least one example. If no, explain why? 2. Determine the average cost of manufacturing one custom kitchen assuming the units given. Assume the MOH costs are allocated based on the direct labor hours per unit. Please show all calculations and round to the nearest dollar. I would recommend that you calculate the MOH per kitchen first. You should calculate an Overhead rate. Discuss other options (at least 2) for the activity base and the importance of the MOH allocation. Do multiple product lines impact the MOH allocation? What happens if MOH is not allocated correctly to a product? 3. Prepare a Job Order Cost sheet for the following custom kitchen: Materials $5,500 and 60 hours of labor. What is the customer price? What other factors would impact the sales price for this type of company? Can a company rely on setting price based on just a % on cost? 4. What is the Contribution Margin (CM) in total and per unit dollars, and CM% for the sale of 800 kitchen cabinets? Explain the importance of CM and how it can be used by companies to predict future income. Create some examples in excel with numbers to show how it can be used. 5. Prepare a traditional Income Statement assuming a volume of 800 units. For the cost of goods sold, please use the per unit cost you calculated in #2 multiplied by number of units sold. You do not have to prepare any additional schedules. I would use a similar format to exhibit 16-8 on page 737 or from your lecture notes. I recommend that you list out all operating expenses given above. Do not use just Selling and General/Administrative Expenses for your categories. Points will be lost by not listing out all period costs. You can ignore interest and income tax expense. 6. Prepare three Cost Volume Profit(CVP) Income Statements using the following yearly volumes: 200, 800 and 1,400. Link this schedule to question #1 for VC and FC calculated. Keep in mind how variable and fixed costs behave. The traditional income statement from #5 should be about the same net income as the 800 units for the CVP format. (use exhibit 20-12 page 893 as your example – please note that it is missing a title and your numbers are for a year. I also will send out an example in chat slides) a) Calculate Break-even in units and sales $ for the company b) Calculate units and sales $ if the company wants a profit of $2,000,000. c) Margin of safety for 800 units. Discuss the importance of these calculations to a company. Fully discuss the differences(at least 3) between the traditional vs CVP format. Give examples supported by numbers in excel of how you would use these calculations as the CFO of the company. 7. If the following changes were to be made, calculate a new CVP Income Statement: Direct Material costs decrease by 10%; fixed costs increase by 30% and sales price would increase by 5%. Assume you are selling the 800 units. Should the company consider these changes? Why or why not? This question is not just based on the new net income. Please review the full income statement for changes. What if the sales volume changes? Does this change your answer? I would recommend using volumes higher and lower to see how the changes impact your answer. Include CVP income statements in excel that are needed to support your answer. Discuss real examples of cost increases for fixed costs (at least 2) and decreases for direct materials (at least 2) that could be implemented for this business. Can the company increase price? What other areas might be impacted due to the price increase? You are the CFO of this business what is important to consider? Give 2 industry specific details that can impact this discussion. Do some research for this industry. It is always important to understand the industry that you are in as some industries have different factors that impact sales and profitability. Additional information for another product line Assume another product line is also being considered – bookshelves. Only use this information for the questions listed directly below.  Higher skilled workers would be required which will result in paying them $15 per hour.  Additional MOH costs for the year will be $150,000. These costs will be in addition to the costs already being incurred. These costs are due to the additional product line and also related to the current product lines for additional production abilities. The two lines will share all MOH costs. 1. Should the company consider using ABC? Discuss why or why not? Areas to include in the discussion but not limited to the following: impact on product cost, implications of not using the right allocation and its impact on price if any, etc…. 2. How specifically would ABC help allocate MOH costs? •The structure of the paper should include an opening paragraph about the company in a word document. 3pts will be deducted for not including an opening paragraph. •The discussion questions should be answered in the order listed (questions are in italics). However, do not number the questions. Instead, the discussion should flow from one topic to the next and include as a minimum the questions identified.  Please use a memo format for the paper and address it to the Board of Directors. • The calculations should be included as schedules in excel which are numbered and referenced to each discussion. A discussion without referring to the numbers will not be considered complete. Do not discuss/explain your calculations. Answer the questions related to your calculations. All schedules should be included in excel and use formulas with professional formatting. A person who is reading the excel schedules should not have any questions on what is being calculated. Not using formulas will result in a minimum 1 grade reduction. I recommend linking the schedules though this is not required. •You should be thinking about all of the concepts that you have learned from this course and their importance to a business owner or investor. I should finish reading your paper and see the concepts and some industry knowledge demonstrated through the discussion and the analysis. •Finally, the closing paragraph(s) should summarize the paper. 3pts will be deducted for not including a closing paragraph. •Plan to devote time to writing and reviewing the paper. Groups can have significant grade reductions for papers that are not well written (spelling, grammar etc..) I would recommend that the paper be no more than 7 pages doubles spaced with reasonable margins. If you need additional pages, please make sure that it enhances your paper.