2. Using the case study, Yorks Itd and your reading and research advise management which option should be selected. (225 words excluding calculations) Yorks Itd (case study) York Ltd has been running a small business of manufacturing and selling one type of electric heaters. Currently, each heater is sold for 40. Variable cost per unit is 16. Total fixed cost for the business is 200,000. Total sales is 10,000 heaters. The business wishes to increase their sales. There are three possible options: 1. Expansion - This option is an expansion of the operation, which allows the volume of sales to be increased to 15,000, but additional fixed costs 60,000 are incurred. Selling price and variable cost will remain same. 2. Cheaper product - This is an adaptation of the product, making a cheaper alternative product for the market. The selling price would drop to 30; the variable costs are 11. The number of customers will increase to 16,000. Fixed costs will remain same. 3. Better product - This is an adaptation of the product, making a superior quality product for the market. The selling price would increase to 48 and the variable costs would increase to 24. The number of customers would decrease to 12,000 and fixed costs would remain same. Independent activity: Using the case study, Yorks Itd, considered in week 3 and your reading and research advise management which option should be selected. 3 and 4 Using the information from the simulation scenario allocated, analyse the decisions you made. Provide evidence of completion of the scenario and for the decisions taken, and their effects, e.g.graphs, reports and tables. (800 words) : SD GAMES ONLINE BUSINESS SIMULATION ( WILL GIVE ACCOUNT) 5 With reference to the in-class activities, compare traditional costing with activity-based costing. (200 words excluding calculations) (EXCEL COSTING IN CLASS ACTIVITIES) 6 With reference to the budget activity done in class, critically evaluate the concept of incremental budgeting in comparison to zero-based budgeting. (200 words excluding calculations) 2. Using the case study, Yorks Itd and your reading and research advise management which option should be selected. (225 words excluding calculations) Yorks Itd (case study) York Ltd has been running a small business of manufacturing and selling one type of electric heaters. Currently, each heater is sold for 40. Variable cost per unit is 16. Total fixed cost for the business is 200,000. Total sales is 10,000 heaters. The business wishes to increase their sales. There are three possible options: 1. Expansion - This option is an expansion of the operation, which allows the volume of sales to be increased to 15,000, but additional fixed costs 60,000 are incurred. Selling price and variable cost will remain same. 2. Cheaper product - This is an adaptation of the product, making a cheaper alternative product for the market. The selling price would drop to 30; the variable costs are 11. The number of customers will increase to 16,000. Fixed costs will remain same. 3. Better product - This is an adaptation of the product, making a superior quality product for the market. The selling price would increase to 48 and the variable costs would increase to 24. The number of customers would decrease to 12,000 and fixed costs would remain same. Independent activity: Using the case study, Yorks Itd, considered in week 3 and your reading and research advise management which option should be selected. 3 and 4 Using the information from the simulation scenario allocated, analyse the decisions you made. Provide evidence of completion of the scenario and for the decisions taken, and their effects, e.g.graphs, reports and tables. (800 words) : SD GAMES ONLINE BUSINESS SIMULATION ( WILL GIVE ACCOUNT) 5 With reference to the in-class activities, compare traditional costing with activity-based costing. (200 words excluding calculations) (EXCEL COSTING IN CLASS ACTIVITIES) 6 With reference to the budget activity done in class, critically evaluate the concept of incremental budgeting in comparison to zero-based budgeting. (200 words excluding calculations)