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    MusicCo Fixed and Variable Cost - Task 1

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    I need to write a 700 to 1,000 word report to me offering your recommendations.

    Part 1
    The first part of the report will include the following:

    ? A spreadsheet that shows the sound-card division's costs and identifies the quantities associated with MusicCo's current production plan and each VP's recommendation.
    ? An assessment of each VP's recommendation regarding sound-card production levels, including an analysis of each VP's argument and an explanation of which assumptions are correct or incorrect.
    ? A recommendation for the optimal production level and an explanation of why that level maximizes profits

    Part 2
    The second part of the report will include the following:

    ? An explanation for why some of the manufacturing overhead costs are considered variable whereas the other overhead costs are fixed.
    ? A new income statement for the keyboard division using your suggested categorization and allocation method.
    ? A plan for how the company will respond to future changes in the keyboard market. Be sure to support the conclusions with data, and explain the difference between the
    o long run and the short run and how this distinction is important for MusicCo's keyboard division;
    o the conditions under which the company should exit the keyboard market and why; and
    o the conditions that determine the length of the short run for MusicCo's keyboard division and the conditions under which the company should shut down production and why.

    Attached is the report that I prepared as well as the back-up materials needed to complete the assignment. Can you please review my report for (1) accuracy of content and (2) is the report grammatically correct or is the presentation done well.

    Thank you for assistance.



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