Case 2B (Mendel Paper Company)

Tara McKnight

BUS630: Managerial Accounting

Prof Moustafa Ahmed

July 14, 2014

Mendel Paper Company

Introduction

The paper will talk about the Mendel Paper Company's concern in regards to their four basic paper product lines. It will show the cost and price data for the next fiscal quarter, plus showing the contribution margins per unit and the revisions. The paper will include the break-even point for sales mix along with the margin of safety for the estimated sales volume of the original estimates and the revised estimates as well. Lastly, it will address Herbert's concern about the variable cost of the place mats.

Original Estimated Contribution Margins - (1)

Computer Paper has 6 units per hour and variable overhead...