Case Study #1

The Case Study in Unit I (Case Study 2-2: Mowerson Division) is located on pages 83-85 in your textbook. Read the case and utilize the data included in the case to answer the following questions.

1. Discuss whether Jim Wright should have analyzed only the costs and savings that Mowerson would realize in 2002.

2. For each of the 10 items listed in Wright's financial analysis, indicate whether:

a. The item is appropriate or inappropriate for inclusion in the report. If the item is inappropriate, explain why it should not be included in the report.

b. The amount is correct or incorrect. If the amount is incorrect, state what the correct amount is.

3. What additional information about Tri-Star would be helpful to Mowerson in evaluating its manufacturing decision?

Case Study #2

The Case Study in Unit III (Case Study 5-1: Celtex) is located on pages 215-216 in your textbook. Read the case and utilize the data included in the case to answer the following questions.

1. Calculate the incremental cash flows to Celtex if the consumer products division obtains Q47 from Synchem versus Meas Chemicals.

2. What advice would you give Debra Donak?

Case Study #3

The Case Study in Unit V will come from the Problems Section of Chapter 9. (Problem 9-2: IPX Packaging) is located on page 427 in your textbook. Read the case and utilize the data included in the case to answer the following questions.

1. Calculate the overhead rate set at the beginning of the year.

2. Calculate the amount of over/underabsorbed overhead for the year.

3. The company's policy is to write off any over/underabsorbed overhead to cost of goods sold. Will net income rise or fall this year when the over/underabsorbed overhead is written off to cost of goods sold?

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