AYN414 : Cost and Management Accounting - Accounting Assignment

ACCOUNTING ASSIGNMENT TASK :  Lucy Zhang your boss at Apple has asked you to provide her with a report on Foxconn’s current business profitability and improvement ideas. You are required to: PART A :  (1) Analyse the profitability of the three products. In order to do this you will need to: a. Calculate the total gross profit for EACH phone then the total gross profit of the three products. Indicate which product is the most profitable; b. Calculate the contribution margin per unit for each of the three; (2) Analyse the profitability of the Foxconn factory. In order to do this you will need to: a. Calculate the break-even point in units and dollars, assuming the current sales mix; b. Calculate the number of phones that need to be sold in order to achieve a target operating profit for Foxconn of $150,000 (assuming the current sales mix); PART B  In July 2017 Foxconn announced it would build a factory in Wisconsin, United States to produce flat- screen displays. It is now considering whether it should also move some or all of its iPhone manufacturing to the US. You need to write a report that will provide an Answer to the following questions: (1) Should Foxconn move some or all of its iPhone manufacture to the United States? Consider the costs and benefits of moving manufacturing from China to the US. These will only be estimates of the costs and benefits for Foxconn/Apple of doing this. You can rely on the figures you have calculated as the basis of this report. (2) What other qualitative factors are going to be important in making this decision? You should also consider what changes are being made in manufacturing and what implications this will have on future manufacturing costs for iPhones.