Hospital Supply

case 16-1 hospital supplyCase 16-1 - Hospital Supply, Inc.

CHAPTER 11: MANAGERIAL ACCOUNTING FOR COST-VOLUME-PROFIT RELATIONSHIPS

HOSPITAL SUPPLY, INC.

MASTER OF BUSINESS ADMINISTRATION UNIVERSITI PUTRA MALAYSIA PBS 2013/2014 MAY

ACCOUNTING FOR DECISION MAKING CASE STUDY

BY

1. FAEEZA NOOR MOHD JAAFAR - PBS 1331339 2. FATIMAH ZAHRAH ZAID - PBS 1331373 3. PUSHPANATHAN - PBS1331405

Case 16-1 - Hospital Supply, Inc.

Case 16-1 - Hospital Supply, Inc.

Hospital Supply, Inc. produced hydraulic hoists that were used by hospitals to move bedridden patients. The cost of manufacturing and marketing hydraulic hoists at the company’s normal volume of 3,000 units per month are shown in Exhibit 1.

Assume a regular selling price of $4,350 per unit.

Case 16-1 - Hospital Supply, Inc.

TABLE OF CONTENT

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Executive Summary.................................................................................4 The Issues...............................................................................................4 The Areas of Consideration.....................................................................4 Action Plan 4.1 Question 1.........................................................................................5 4.2 Question 2.........................................................................................6 4.3 Question 3.........................................................................................8 4.4 Question 4.........................................................................................10 4.5 Question 5.........................................................................................11 4.6 Question 6.........................................................................................12 4.7 Question 7.........................................................................................13

5.0...