Management Accounting Essay Example | Topics and Well Written Essays - 2000 words - 5

Management Accounting - Essay Examplemission rate coupled with vital issues unavoidable by the steering before making various decisions necessitated a close and thorough analysis of Ozmedic.The taradiddle begins by presenting a budgeted income statement when the commission is change magnitude and when the firm hires is own salespeople. The breakeven point and the level of indifference between the two options are then computed. The report then proceeds by recommending the best option between increasing the sales commission and hiring own sales people. It will be illustrated that it is better to hire own salespeople than increase the commission to 20 percent. Further, the report presents the launch date for the BPM-201 as well as factors that should be considered when deciding on launch date. In addition, the report will investigate if accepting the topical anesthetic government offer is viable for the firm. The report then establishes the maximum price to be paid for the outside supplier of Penlight Division for Instrulite. It then concludes by explaining different factors to be considered when deciding whether to outsource apart from the price of the product.Level of indifference between the two options refers to the sales volume at which the net income of the two options would be the same. From the appendix 2, the level of indifference would be AUD $18,000,000. From this volume of sales, the Ozmedics management would be indifferent of the option to choose because both results to a loss of AUD $2,840,000. even so though, this volume of sales would result to the same figure, it is not viable because the business would incur a loss regardless of the option adopted. The firms management should increase its promotional efforts so that a more viable level is achieved.Permanent organizations like Ozmedic would like to maximize their profits by reducing action costs. Given any level of sales, reduced expenses results to high profits. The best option that woul d help the company maximize its profit is, therefore, hiring