- Case Study: Pramini, R., & Ashutosh, D. (2019, April 22). Harsh electricals: Analyzing cost in search of profit. Ivey Publishing. Retrieved from https://www.iveycases.com/ProductView.aspx?id=101830
Objectives
- Identify a role to assume in an analysis of a presented case
- Assess the financial reporting landscape, considering the user needs, constraints, and business environment
- Identify the issues contained in a presented case
- Analyze the issues (qualitatively and quantitatively) in a presented case
- Provide a recommendation and conclusion based on a sound analysis of a case
Instructions
- Individually, review the case, which can be purchased using the following link from Ivey Publishing: https://www.iveycases.com/ProductView.aspx?id=101830
- Leverage the Intermediate Managerial Accounting textbook.
- Develop a formal response to the problem(s) posed in the case, addressing the following areas within the analysis and using the same headings.
- Introduction/Issue identification
- Prepare a cost of goods sold statement for Harsh Electrical
- Considering Harsh Electrical’s product and period costs, create a projected income statement for the calendar year 2014.
- Calculate Harsh Electricals’ Break Even Point (BEP) in terms of units and volume
- Calculate the number of units that Harsh Electricals must sell to match the level of profit earned in financial year 2010-2011.
- Summarize the case and conclude, including the integration of qualitative factors of the decision
