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Branch Accounting: Cycle Case Study

J&J Trophy has two branches that sell trophies, plaques, and provide engraving services. The Marysville branch also acts as the warehouse. Management is considering offering custom design services at the Urbana branch to see if it would be profitable, as the Marysville branch recently hired Steve Foster to perform custom design work 20 hours a week. Management needs to consider costs like labor and determine profitability criteria like revenue and costs.

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Vinothini
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45 views

Branch Accounting: Cycle Case Study

J&J Trophy has two branches that sell trophies, plaques, and provide engraving services. The Marysville branch also acts as the warehouse. Management is considering offering custom design services at the Urbana branch to see if it would be profitable, as the Marysville branch recently hired Steve Foster to perform custom design work 20 hours a week. Management needs to consider costs like labor and determine profitability criteria like revenue and costs.

Uploaded by

Vinothini
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Branch Accounting

Cycle Case Study


Merchandising Business: Trophies and Engraving
J&J Trophy has branches in Marysville and Urbana. The
Marysville store is the warehouse for the two branches.
J&J Trophy sells trophies, plaques, and other types of
awards. It also provides commercial and industrial
engraving. J&J Trophy uses a centralized accounting
system. Recently the Marysville store hired Steve Foster
to design custom products for local businesses. Steve
works approximately 20 hours a week. Management is
considering offering custom design services at the
Urbana branch to determine their profitability.
Thinking Critically:
1. What costs should management consider in
evaluating the profitability of this service?
2. What criteria should management use to evaluate
profitability

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