Identify the audience or population that you seek to educate about this issue.

One of the pivotal goals of consumer health literacy efforts is to design educational materials thatattract as well as educate users. In this Assignment, you design a health information document on a topic that is of interest to you.

To prepare:

  • Select a health issue of interest to you.
  • Identify the audience or population that you seek to educate about this issue.
  • Search the Internet to find credible sites containing information about your selected topic.
  • Review the two health literacy websites listed in this week’s Learning Resources. Focus on strategies for presenting information.

To complete:

  • Design an educational handout on the health issue you selected. (Childhood Obesity)

o   Include a cover page.

o   Include an introduction that provides:

  • An explanation of your issue and why you selected it
  • A description of the audience you are addressing

o   In the handout itself:

  • Develop your handout in such a way that it attracts the attention of the intended audience.
  • Include a description of the health issue and additional content that will enhance your message (i.e., key terms and definitions, graphics, illustrations, etc.).
  • Recommend four or five sites that provide clear, valuable, and reliable information on the topic.

Note: Remember to keep the information in your health handout and its design at the appropriate level for the audience you are seeking to inform. Submit your Assignment as a Word document.

Readings

  • McGonigle, D., & Mastrian, K. G. (2012).Nursing informatics and the foundation of knowledge(Laureate Education, Inc., custom ed.). Burlington, MA: Jones and Bartlett Learning.

o   Chapter 26, “Nursing Research: Data Collection, Processing, and Analysis”

The authors of this chapter relate nursing research to the foundation of knowledge model. The chapter assesses informatics tools for collecting data, storing information, and processing and analyzing data.

o   Chapter 27, “Translational Research: Generating Evidence for Practice”

In this chapter, the authors differentiate evidence-based practice and translation research. They also describe models used to introduce research findings intro practice.

  • Hynes, D. M., Weddle, T., Smith, N., Whittier, E., Atkins, D., & Francis, J. (2010). Use of health information technology to advance evidence-based care: Lessons from the VA QUERI program.Journal of General Internal Medicine, 25(Suppl. 1), S44–S49.

    Retrieved from the Walden Library databases.

    This article presents a study that evaluated the role of health information technology (HIT) in the Department of Veteran Affairs’ Quality Enhancement Research Initiative. The authors convey their findings on how HIT provided data and information to aid implementation research, and how implementation research helped further HIT development. Additionally, the text details methods of overcoming common HIT barriers to implementation research.

  • Jamal, A., McKenzie, K., & Clark, M. (2009). The impact of health information technology on the quality of medical and health care: A systematic review.Health Information Management Journal, 38(3), 26–37.

    Retrieved from the Walden Library databases.

    This text details a study that reviews the published evidence concerning the impact of health information technology (HIT) on the quality of health care. The study investigated the use of HIT in medical care and allied health and preventive services. The authors primarily focus on the impact of electronic health records, computerized provider order-entry, and decision support systems.

 

  • Umscheid, C. A., Williams, K., & Brennan, P. (2010). Hospital-based comparative effectiveness centers: Translating research into practice to improve the quality, safety and value of patient care.JGIM: Journal of General Internal Medicine,25(12), 1,352–1,355.

    Retrieved from the Walden Library databases.

    This article revolves around the usage of the hospital-based comparative effectiveness (CE) center model. The authors highlight the model’s benefits and the increasing usage of CE evidence. The article also reviews solutions to overcoming many of the challenges to operating hospital-based CE centers.

Discuss the qualities that make this product/service new to the marketplace and the rationale for your decision to pursue the concept.

EXECUTIVE SUMMARY

An Executive Summary is a one-page document that outlines the purpose, process, findings, discussion, and findings of a report submitted to management. CEOs often read and assess an Executive Summary before deciding to read the entire report, so this must be high quality narrative that demonstrates the significance of the work undertaken, the objectivity of research and analysis underpinning the report, and the credibility of the resulting conclusions.

INTRODUCTION

This assignment entails development of a comprehensive strategic marketing plan for a new product or service that is ready to “go to market”. A Project Template is provided that allows you to organize your work in increments and see how the sections come together to produce a comprehensive plan.

PRODUCT/SERVICE

This assignment requires application of concepts learned to build a strategic marketing plan for a new product or service that is ready to “go to market”. You will not be allowed to mimic plans or ideas from larger or already “in-place” campaigns. You must develop the business concept in its entirety.

  • Describe the new product or service.
  • Discuss the qualities that make this product/service new to the marketplace and the rationale for your decision to pursue the concept. Be sure to pick a product or service that is ready to market. If you are developing a new product, assume that the development phase is over and you are ready to launch the product into the marketplace.

OBJECTIVES/MISSION STATEMENT

Create a Mission Statement. State your short-term MARKETING objectives (one year). Assume that the product/service is ready to launch at the beginning of the year (planning and testing have been completed).

  • Marketing objectives include goals for sales, profits, market share (as examples)
  • Objectives need to be quantifiable. Use the SMART acronym—simple, measurable, achievable, relevant, and time-specific—in formulating your objectives. An objective with a 100% goal is not acceptable

TARGET MARKET

Identify your target market. Provide a specific demographic profile and rationale for this decision. Another source that may help you: The US Census Bureau’s American Fact Finder. Consider the size of the market and its purchasing power. Research is required to back-up your selection and to provide statistics to show that it is a viable market.

COMPETITION

Analyze your competition. Who are they? Who are the biggest players? How large is the market? What are the trends/forecasts in the industry? How does your product/service fit in? Hoover’s Pro in the Library is a good tool for this section; it may be accessed under Find Web Resources.

PRODUCT/SERVICE FEATURES

Provide a brief overview of the product or service.

  • State the features of your product/service. Show how it’s innovative and different. It may be unique because of the area in which you plan to market it.
  • Discuss legal and ethical implications that could affect the marketing process. This will require research.

CORE STRATEGY

Discuss your Core Strategy and make sure to connect it to your Mission & Objectives. Include a discussion on Product/Service Positioning.

MARKETING MIX: COMMUNICATIONS & PROMOTION

The Marketing Mix is the set of decisions about communications and promotion, price, channels of distribution, and customer relationship management. An integrated marketing communications (IMC) approach delivers a clear and consistent message to your consumers and is connected to your Core Strategy.

  1. Discuss the aspects of the IMC. (The elements of the communication mix include: advertising, direct marketing, sales promotion, publicity/public relations and personal selling.) Define each and discuss the pros and cons of the individual elements.
  2. Provide a detailed description of your IMC approach. Explain your rationale for choosing or rejecting the specific elements (include applications to the earlier research section). What changes do you expect to make as the product/service matures?
  3. Describe the message you wish to communicate based on your core strategy. Explain your rationale for the message. Formulate how you will communicate with your target market? Be specific. How will the internet be used in your IMC approach?
  4. Select and explain the most suitable method for measuring advertising effectiveness. Your decision must include research to back up the selected method. Be sure to explain why this is the most effective method to measure the effectiveness of your marketing campaign.

MARKETING MIX: PRICE

Discuss what pricing objectives you would consider for your product/service. The Objectives should be based on the various theories presented in marketing literature and take in to account competitor pricing. Including background on value proposition, positioning, and target market is necessary. All of these components provide rationale for the chosen pricing scheme.

MARKETING MIX: CHANNELS OF DISTRIBUTION

Channels of Distribution: Specify the type of distribution channel you will use and include rationale.

MARKETING MIX; CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management -Detail how you will incorporate CRM into your plan. Be sure to include a discussion on the role of technology that will be used to support your CRM.

CONCLUSION

REFERENCES

The assignment requires the use of ARTICLES from the library’s full-text databases. Articles are found in periodicals. These are not to be confused with eBooks or Reference Books. The most popular databases in marketing are: ABI Inform Global, Academic Search Premier, and Business Source Premier.

Your report MUST include a reference list. All research should be cited in the body of the paper. In-text citations and corresponding references should be included in your paper. For more information on APA, please visit the APA Lab. The paper should be written in third person; this means words like “I”, “we” and “you” are not appropriate. The use of direct quotes is discouraged, but may be used sparingly in appropriate situations.

Grading will be based on content, application, research, mechanics (APA format, spelling grammar, and punctuation), and style (organization, readability, and using your own words).

Please provide in paper

APA format

In text citations with references and links such as the ones provided below

In text Citation: (Broadman, 2011).

References:

Broadman, H. (2011). Navigating the risks and opportunities in emerging markets. Retrieved From: http://www.pwc.com/us/en/view/issue-15/navigating-risks-opportunities-emerging-markets.jhtml

100% plagiarism free

Finally, consider the values and principles that guide the nursing profession; the organization’s mission, vision, and values; the leadership and management competencies addressed in this course; and your own values and reasons for entering the profession.

Effective leaders have a high degree of self-awareness and know how to leverage their strengths in the workplace. Assessments are a valuable tool that professionals can use to learn more about themselves and consider how their temperament and preferences influence their interactions with others.

As you engage in this learning process, it is important to remember that everyone—regardless of temperament type or related preferences—experiences some challenges with regard to leadership. The key to success is being able to recognize and leverage your own strengths while honoring differences among your colleagues.

At some point in your leadership career, you will encounter an ethical or moral dilemma that requires you to take a stand and defend your position.

For this Assignment, you evaluate an issue and consider how you could act as a moral agent or advocate, facilitating the resolution of the issue for a positive outcome.

To prepare:

  • Consider the examples of leadership demonstrated in this week’s media presentation and the other Learning Resources.
  • To further your self-knowledge, you are required to complete the Kiersey Temperament as indicated in this week’s Learning Resources. Consider your leadership style, including your strengths for leading others and include your results from Kiersey Temperament Sorter to describe potential challenges related to your leadership style.
  • Mentally survey your work environment, or one with which you are familiar, and identify a timely issue/dilemma that requires you to perform the leadership role of moral agent or advocate to improve a situation (e.g., speaking or acting on behalf of a vulnerable patient, the need for appropriate staffing, a colleague being treated unfairly).
  • What ethical, moral, or legal skills, dispositions, and/or strategies would help you resolve this dilemma? Define the differences between ethical, moral, and legal leadership.
  • Finally, consider the values and principles that guide the nursing profession; the organization’s mission, vision, and values; the leadership and management competencies addressed in this course; and your own values and reasons for entering the profession. What motivation do you see for taking a stand on an important issue even when it is difficult to do so?

To complete:

Write a 4 to 5 page paper (page count does not include title and reference page) that addresses the following:

  • Introduce the conceptual frameworks of the ethical constructs of ethics, moral, or legal standards and the purpose of the paper.
  • Consider  an ethical, moral, or legal dilemma that you have encountered in your work environment and describe it.
  • Analyze the moral, ethical, and legal implications utilized in this situation. Describe your role as a moral agent or advocate for this specific issue.
  • Consider your leadership styles identified by your self-assessment and determine if they act as a barrier or facilitation during this dilemma.

Self Assessment results

Guardians (SJ’s) are the cornerstone of society, for they are the temperament given to serving and preserving our most important social institutions. Guardians have natural talent in managing goods and services–from supervision to maintenance and supply — and they use all their skills to keep things running smoothly in their families, communities, schools, churches, hospitals, and businesses.

Guardians can have a lot of fun with their friends, but they are quite serious about their duties and responsibilities. Guardians take pride in being dependable and trustworthy; if there’s a job to be done, they can be counted on to put their shoulder to the wheel. Guardians also believe in law and order, and sometimes worry that respect for authority, even a fundamental sense of right and wrong, is being lost. Perhaps this is why Guardians honor customs and traditions so strongly — they are familiar patterns that help bring stability to our modern, fast-paced world.

Practical and down-to-earth, Guardians believe in following the rules and cooperating with others. They are not very comfortable winging it or blazing new trails; working steadily within the system is the Guardian way, for in the long run loyalty, discipline, and teamwork get the job done right. Guardians are meticulous about schedules and have a sharp eye for proper procedures. They are cautious about change, even though they know that change can be healthy for an institution. Better to go slowly, they say, and look before you leap.

Guardians make up as much as 40 to 45 percent of the population, and a good thing, because they usually end up doing all the indispensable but thankless jobs everyone else takes for granted.

 

You are most comfortable when your life is structured. As a result you usually prefer a workplace that lets you create a routine you can settle into. Because you are dependable and exacting, your colleagues and customers rely on your work. Your ideal job offers you a clear chain of command, and lets you progress through a hierarchy based on your meeting expectations.

The School of Nursing requires that all papers submitted include a title page, introduction, summary, and references.

 Course Readings

  • Marquis, B. L., & Huston, C. J. (2015).Leadership roles and management functions in nursing: Theory and application (8th ed.). Philadelphia, PA: Lippincott, Williams & Wilkins.

o   Chapter 4, “Ethical Issues”

This chapter examines ethical frameworks for decision making and principles of ethical reasoning. You are also introduced to the ANA Code of Ethics and Professional Standards, MORAL decision-making model, and ethics committees.

o   Chapter 5, “Legal and Legislative Issues”

Chapter 5 provides an overview of the many legal and legislative issues of which leaders and managers need to be aware. As you read this chapter, keep these issues in mind.

o   Chapter 6, “Patient, Subordinate, and Professional Advocacy”

Nurses are the best advocates for patients and the profession. This chapter examines more closely the role of becoming an advocate, patient rights, subordinate advocacy, whistle-blowing, professional advocacy, advocacy in legislation and public policy, and media.

  • Cianci, A. M., Hannah, S. T., Roberts, R. P., & Tsakumis, G. T. (2014). The effects of authentic leadership on followers’ ethical decision-making in the face of temptation: An experimental study. The Leadership Quarterly, 25(3), 581-594. doi:10.1016/j.leaqua.2013.12.001

    Abstract excerpt: The present research investigates the impact of authentic leadership on followers’ morality, operationalized as ethical decision-making, in the face of temptation. This experiment finds that authentic leadership and temptation interacted to affect individuals’ ethical decision-making. Specifically, authentic leadership significantly inhibited individuals’ from making unethical decisions in the face of temptation, whereas followers of neutral or less authentic leaders were more likely to succumb to temptation..

  • Disch, J. (2014). Using Evidence-Based Advocacy to Improve the Nation’s Health. Nurse Leader, 12(4), 28-31. doi:10.1016/j.mnl.2014.05.003

    Abstract excerpt: Evidence-based practice is 1 of the 5 competencies that the Institute of Medicine has identified for all health professionals. Its intent is to employ evidence-based practice and integrate best research results, clinical expertise, and patient values to make patient care decisions. This article will explore the concept of evidence-based advocacy and describe ways in which one prominent nursing organization, the American Academy of Nursing, uses evidence-based advocacy to positively impact the nation’s health and advance the nursing profession

  • Martin, M. B. (2014). Transcultural Advocacy and Policy in the Workplace: Implications for Nurses in Professional Development. Journal for nurses in professional development, 30(1), 29-33.  doi: 10.1097/NND.0000000000000027

    Abstract: This article introduces the role of nursing professional development specialists in serving as a resource for both patient and staff advocacy regarding cultural and linguistic matters. The impact of changing demographics, support for civil rights, and established policy related to culture and linguistics is emphasized. An overview of policy at local, state, and national levels is suggested to promote nursing professional development in the interest of culturally and linguistically compliant nursing practice.

  • Woods, M. (2014). Beyond moral distress preserving the ethical integrity of nurses. Nursing Ethics, 21(2), 127-128.

This guest editorial discusses the difficulties involved in dealing with those sometimes-painful moral problems encountered in practice.

Identified and described personal career goals at three anchor points—three, five, and ten years.

Personal and Professional Self-Development Plan

 

Consider the self-development plan as a business plan for your professional career development. Similar to a business plan, it should express your desired goals—both short term and long term—your objectives, and the resources you need. All the elements of the plan should allow you to monitor your progress.

 

This week, you will develop a personal and professional self-development plan that identifies your personal career goals along with the five integral components of professional practice, namely caring, communication, critical thinking, professionalism, and holism.

 

Your plan will consist of two parts:

 

Part 1: Personal Career Goals: Begin by identifying your career goals as your role in professional nursing practice evolves. Following this reflection, answer the questions given in the personal and professional self-development plan provided. Share your projected goals at three anchor points—three, five, and ten years.

 

Click here to download the personal and professional self-development plan.

 

Part 2: Professional Practice Components: In this section of the plan, identify specific professional practice components that you need to develop further and provide an action plan.

 

Support your responses with examples.

 

Cite any sources in APA format.

 

Assignment 3 Grading Criteria
Maximum Points
Identified and described personal career goals at three anchor points—three, five, and ten years.
28
Identified and described long-term goals clearly.
28
Created an action plan to meet the career goals.
32
Identified and explained professional practice components.
32

The evidence that you present backs up your topic sentence and, by extension, supports your thesis statement.

In this assignment, you will take Draft 2 (introduction and review of literature), written in Unit VI, and add the body of your

paper. Your body paragraphs should contain the six elements indicated below and be developed in an appropriate manner.

If the body does not contain these elements, it is likely you have not fully developed the body, and this lack of development

can severely impact your grade for this assignment. You will need to write at least four body paragraphs while incorporating

five academic sources for this assignment. The paragraphs should be thorough and cover all the listed elements. Your

Draft 3 (introduction, review of literature, and body) should include the elements listed below. With the addition of your

Body, you should have a paper that is approximately 7-10 pages long, without the addition of a conclusion or abstract and

without counting your cover page or references page.

Elements:

Your grade for Draft 3 is largely based on your inclusion of various elements and the overall quality of your writing. Your

Draft 3 must contain the following elements.

1. Cover page and APA formatting:

You should include an APA-style cover page for your Draft 3. See the example on page 16 of The CSU APA Guide

(6th edition). Your cover page should include the following: the title of your paper, your name, and the name of your

university (Columbia Southern University). The running head should include up to 50 characters from the title of the

paper, along with a sequential page number in the upper right-hand corner.

2. Introduction:

Using the comments that you received on your Draft 2, revise your introduction. There are some pitfalls to writing

an introductory paragraph, and you can avoid some of them by reading through the Checklist: “Avoid Certain

Mistakes in the Introduction” on p. 495 of Strategies for Writing Successful Research Papers.

3. Review of literature:

Using the comments that you received on your Draft 1, revise your review of literature, and include it with this

newest draft.

4. Body paragraphs:

Each paragraph of the body of your Research Paper should be a cohesive unit. It should be tight, but developed. It

should serve a function, and its purpose should always be to bolster the thesis. Therefore, you should use the

following order for each paragraph in the body.

a. Topic sentence: This sentence summarizes the entire paragraph in one strong, well-written sentence, and it

directly supports the thesis statement.

b. Explanation of topic sentence (1-2 sentences): Often times there is more to be said about the topic sentence,

more explanation that is necessary in order for it to be a clear idea, so there are usually a few sentences that follow

the topic sentence that explicate the idea more for the reader. These sentences not only “unpack” the topic

sentence, but they also anticipate the evidence that will be used to support the topic sentence, usually indirectly.

c. Introduction to evidence (1-2 sentences): No piece of evidence (quotation, example, paraphrase, etc.) should 

EH 1020, English Composition II 13

be dropped into a paragraph without first introducing it. An introduction might include the title of the source, the

author, and/or a short description of the source/author’s credentials. In this way, no evidence is presented without a

context because it is this context that makes the evidence meaningful.

d. Evidence: The evidence that you present backs up your topic sentence and, by extension, supports your thesis

statement. The evidence that you supply can be a number of things: a quotation from a source; a reasonable,

illustrative example; a statistic; commentary from an interview; etc.

e. Explanation of evidence: No piece of evidence stands on its own or is convincing on its own. Although it may

seem to draw a direct line to your topic sentence to support it, often the reader needs you to make the connection

between the two. Further, the general rule is that for each sentence of quoted material, your explanation should be

just as long, so if you include a block quotation, the block quotation should be met with an equally long explanation.

f. Transition (1-2 sentences): Transitions are essential for research papers because body paragraphs, especially,

are written as units, and it is the transitions that allow for these units to be linked together. Take a look at the list of

transitional expressions on pp. 44-45 in The Little, Brown Compact Handbook with Exercises.

5. References:

Analyze how and why you, as a manager, would prioritize the variances for analysis and how knowing these variances might help you improve efficiency.

Shared Practice: Variance Analysis

Several tools are available to managers when evaluating organizational performance. Variance analysis is one such tool used to evaluate performance. Variance analysis compares actual costs with standard costs. The results from a variance analysis are important for helping managers control costs as well as identify areas were organizational performance and efficiency can be improved.

To prepare for this Discussion: Shared Practice, review the Learning Resources for this week and reflect on how actual costs, standard costs, and variance analysis will contribute to your current or future role as a manager or in decision making. Consider the role of variances when engaged in decision making and how variance analysis might help contribute to improved organizational efficiency.

Zimmerman, J. L. (2014). Accounting for decision making and control (8th ed.). New York, NY: McGraw-Hill.

  • Chapter 12, “Standard Costs: Direct Labor and Materials” (pp. 538–563)

    This chapter describes standard costs for decision making and control as well as direct labor and direct material variances.

 

Post by Day 3, the following:

  • Describe a scenario in which there are both highly favorable and highly unfavorable variances. Be sure to include the actual and standard costs in your scenario.
  • Analyze how and why you, as a manager, would prioritize the variances for analysis and how knowing these variances might help you improve efficiency.

Note: Your scenario should be different from those posted previously by your colleagues.

Discuss how this person can (or does) serve as a role model for others in the helping profession.

ssignment 1: LASA 2: Ethical Profile Paper

Directions:

You are to write an ethical profile paper that recognizes the formative influence of your family, heroes, and personal style on you as an ethical professional. This paper will provide a profile of you in regards to your ethical and professional practice. You will be required to include information on who you are as an ethical professional, how this course has shaped your unique ethical decision-making style, and the areas in which you feel still need further development.

Include the following four sections in your paper:

  1. Ethical Autobiography: First, explain how you think through and determine what is “right” and “wrong” (personally and professionally) in your own daily life. Second, identify four examples of ethical behaviors and explain how your cultural heritage has shaped your values. Third, describe the nature of the four ethical behaviors you see in yourself.
  2. Professional/Ethical Hero: First, identify an ethical “hero,” an individual that has most impressed you and serves as your role model because of their professional/ethical presence (i.e., sensitivity, appropriate boundaries, and respect for privacy, ethical commitment, and ethical courage). Elaborate on his or her ethical characteristics. Discuss how this person can (or does) serve as a role model for others in the helping profession. Second, describe how this “hero” has influenced your value system. Click here to read an article on ethical hero.
  3. Ethical Decision-Making Style: This section will articulate your implicit style in terms of ethical decision making. Although there are specific models that help facilitate ethical decision making, everyone has his or her own unique style. Taking into consideration the ethical decision-making models presented in this course, identify the style that reflects your early and ongoing experiences with moral values and issues that has been influenced and shaped by your parents, relatives, peers, and valued adults in your life, such as a teacher or coach. Use what you have written from your autobiography to supplement this discussion. In summary, explain your implicit ethical decision-making style, including how this course and your cultural heritage have served as influential factors.
  4. Professional and Ethical Development: Ethical development is, for most, a career-long process. In the last section of your paper, please identify at least two areas discussed in this module/course where you feel you would benefit from more development. Lastly, suggest ways in which you can acquire your further development.

Please include information from two or more external scholarly references using APA formatting for all citations.

Your paper should be approximately 6–8 pages in length, be double-spaced, in 12 point, Times New Roman font with normal 1” margins; be written in APA style; and be free of typographical and grammatical erro

Describe one of the major differences between leaders and managers.

Define business operations.

 

List the three primary functions of a business’s operations.

 

List the six key functions that all businesses need to address just as part of doing business

 

Define managing versus leading

 

Describe one of the major differences between leaders and managers

 

What are the four key factors that a newly promoted leader needs to focus on?

 

Identify the 4 main functions of management.

 

Define the role of Human Resource Management or HRM as it’s often referred to.

 

Explain how HRM professionals are now viewed and what their main goal is.

 

Discuss your responses to each of the previous questions and include applicable

  • Assist in the circulation of antiunion petitions.
  • Counter union exaggerated claims on flyers.
  • Tell employees they do not need to talk to union organizers, that they may vote against the union, and that the independent living home does not welcome the union.
  • Solicit employees to request the return of their authorization cards.
  • Tell employees they may be replaced if they vote for the union.
  • Appeal to the employees to defeat the union.

Include a description of the specific labor laws that you included and why.

Discuss your responses to each of the previous questions and include applicable

Explain the differences between the two alternatives.

You are an economist for the Vanda-Laye Corporation, which produces and distributes outdoor cooking supplies. The company has come under new ownership and management and will be undergoing changes in its product lines and operating structure. As an economist, your responsibilities include examining the market factors that affect success or failure of a product, including the supply and demand for the product, market conditions, and the behavior of competitors with similar products.

The new owners are evaluating the operating structure, and you have two possible alternatives. One alternative requires a high level of investment in fixed costs compared to the other alternative. Jorge, your supervisor, has assigned you the task of evaluating the two alternatives.

Assume that the company has no debt. Regardless of the alternative selected, market conditions will require the selling price of the product to be $3.45 per unit. The details for each alternative are given in the table.

 

Alternative 1

 

 

Alternative 2

Variable costs $2.20 $2.70
Fixed costs $80,000 $30,000
Total assets $350,000 $350,000

Jorge has asked you to provide detailed responses to the following questions:

  • How does CVP analysis help management in the planning stage of a new business? How does CVP analysis assist the decision makers of an existing business?
  • What is the break-even quantity for each of the investment alternatives, calculated using an algebraic approach? Complete the tables for each alternative using the Microsoft Excel Template given below and indicate the break-even points. Using Microsoft Excel, graph the relevant data, showing the break-even points and the profit levels for each alternative. Explain the differences between the two alternatives.
  • What is the degree of operating leverage (DOL) for each alternative at 90,000 units?
  • What is the significance of different DOLs using this example?
  • What does the return on equity (ROE) ratio tell management? How is it used in the decision-making process?
  • What is the ROE under each alternative at an output level of 124,000 for Alternative 1 and 60,000 for Alternative 2? (As the company has no debt, the formula for ROE becomes profit/assets. Use this formula.) Explain the reason for and significance of your answers.
  • Which alternative would you recommend to the company? Explain the pros and cons of each alternative and the reasons for your selection.

(Excel template attached)

Submission Details:

  • Compile your calculations and graph in a Microsoft Excel spreadsheet and your analysis in a Microsoft Word document.