The company has total fixed fee and variable cost

Instructor's Name

Assignment due Date

Analysis on the Benefits of Recalculating Pickle’s Cost of Production

Break-even analysis will be used to calculate the production cost of the organization. The expenses incurred by the business to venture into the new business are explained using the break-even analysis. The company determines the position where no losses or profits are using the break-even analysis (Taschner & Charifzadeh, 2016). The variable, fixed, and selling price per unit is used to calculate the equilibrium analysis. The equilibrium analysis calculation will use 2,000 units at the lower side. The break-even analysis separates the fixed price per unit and the variable cost. The company has a total fixed fee of $24,000 and a variable cost of $66,000. The variable cost per case is $7.33; the break-even point recorded recently is 8,989 units. Super Deal Company will give an offer that will determine the break-even point; the purchase of 11,060 units changes the break-even point. The organization will earn more profit if Super Deal doubles its investments.

The management's decision-making process uses economic and financial information provided in managerial accounting (Bragg, 2019). The organization's financial status in cash flows is determined by financial accounting. Managerial accounting of production looks into the costs of production and the challenges where they give solutions to the challenges. Managerial accounting does not consider some factors that affect decision-making; managerial accounting has the challenge of using inaccurate numbers. Financial accounting of production looks into the company's financial status to give the status of profits and losses. The production's financial accounting looks into that data to provide a good report. The challenge with financial accounting is that it takes time to look into the accounts and the regulation in the company affects the financial accounting.

Recommendation on the offer of Super Deal