Chapter 15

Accounting Information for Management Decisions

ESSENTIAL QUESTIONS

How is an income statement prepared reporting contribution margin? How is the contribution margin rate calculated? How is the break even point calculated? How are the sales dollars and sales units required to earn a planned amount of net income calculated? What is the effect of changes in sales volume, unit costs, and unit sales prices on net income? What is meant by a sales mix and how is it calculated?

TERMS FOR CHAPTER 15

-total costs -unit costs -variable costs -fixed costs

-contribution margin -break even point -sales mix

ASSIGNMENTS

Define Terms for the Chapter Cost Characteristics that Influence Decisions Read pp. 418-422 1) View Power Point presentation intro and 15-1 2) Complete Application Problem 15-1 p. 436 3) Work on Study Guide 15 Time 1 day Determining Break Even Read pp. 423-426 1) View Power Point presentation 15-2 2) Complete Application Problem 15-2 p. 436 3) Continue to Work on Study Guide 15 Time 1 day Decisions that Affect Net Income Read pp. 427-434 1) View Power Point presentation 15-3 2) Complete Application Problem 15-3, 15-4, & 15-5 pp. 437-438 3) Complete Study Guide 15 Time 2 days

Complete Mastery Problem 15-6 pp. 438-439 Time 2 days Additional Chapter exercises Applied Communication p. 440 Cases for Critical Thinking, Case 2 p. 440 (This should be at least one typed page including a table of the data given) Time 3 days Challenge Problem 15-7 pp. 439 may be completed for extra credit All Chapter 15 assignments must be handed in by March 4th. No Exceptions.