Wheelco, Inc. manufactures automobile and truck wheels. The company produces four basic, high-volume wheels used by each of the large automobile and pickup truck manufacturers. Wheelco also has two specialty wheel lines. These are fancy, complicated wheels used in expensive sports cars.
Lately, Wheelco’s profits have been declining. Foreign competitors have been undercutting Wheelco’s prices in three of it’s bread-and-butter product lines, and Wheelco’s sales volume and market share have declined. In contrast, Wheelco’s specialty wheels have been selling steadily, although in relatively small numbers, in spite of three recent price increases. At a recent staff meeting, Wheelco’s president made the following remarks: “Our profits are going down the tubes, folks. It cost us 29 dollars to manufacture our A22 wheel.. That’s our best seller, with a volume last year of 17,000 units. But our chief competitor is selling basically the same wheel for 27 bucks. I don’t see how they can do it. I think it’s just one more example of foreign dumping . I’m going to write my senator about it! Thank goodness for our specialty wheels. I think we’ve got to get our salespeople to push those wheels more and more. Take the D52 model, for example. It’s a complicated thing to make, and we don’t sell many. But look at the profit margin. Those wheels cost us 49 dollars to make, and we’re selling them for 105 bucks each.”
In memo format. Using the numbering and/or bullet points, if needed
1. Describe the accounting information that is missing, or you would like to know before you could advice Wheelco’s President. Give three examples.
2. Using the information from question 1, how would you advise him.
For more information on Distortion of Product Costs read this: https://en.wikipedia.org/wiki/Cost_accounting
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
Australia Assessments has gained an international reputation of being the leading website in custom assignment writing services. Once you give us the instructions of your paper through the order form, we will complete the rest.
As we work towards providing the best custom assignment services, our company provides assignment services for any type of academic essay. We will help you develop professionally written essays that are rich in content and free from plagiarism.
Admission and Business Papers
Our skilled team of professional writers will ensure that we help you craft a remarkable admission essay for your desired Master's program in your institution of choice. We won't stop there. Once you enter the job market, we will be available to secure you a position at your desired worksite by creating an outstanding portfolio or resume.
Editing and Proofreading
Our editorial team is always available for all editing and proofreading services. They check completed papers by our writers and also provide professional opinions to papers completed by our clients.
We harbor professional academic writers with different qualifications in diverse academic fields. As such, we are capable of handling both simple and technical papers. Ensure that you provide us with correct and complete instructions in the order form.