Accounting 3. Stage 1 Desired Results. Lenape Regional High School District BOE Approved 2/15/

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1 Accounting [Pat Costello, pcostello@lrhsd.org, Seneca High School, X8392] Michael Smith, msmith@lrhsd.org, Lenape High School X8958] - [Rick Bozarth, rbozarth@lrhsd.org, Shawnee High School, X8344] [Jack Lamplugh, jlamplugh@lrhsd.org, Cherokee High School X8609] Unit #5 Management Decisions Using Cost-Volume Profit Analysis Stage 1 Desired Results Established Goals 2009 NJCCC Standard(s), Strand(s)/CPI # ( Common Core Curriculum Standards for Math and English ( Standard 8.1 Educational Technology: All students will use digital tools to access, manage, evaluate, and synthesize information in order to solve problems individually and collaboratively and to create and communicate knowledge. Strand A. Technology Operations and Concepts Strand D. Digital Citizenship 21 st Century Themes ( ) _x_ Global Awareness _x_ Financial, Economic, Business and Entrepreneurial Literacy Civic Literacy Health Literacy Environmental Literacy Learning and Innovation Skills: _x_ Creativity and Innovation _x_ Critical Thinking and Problem Solving _x_ Communication and Collaboration 21 st Century Skills Standard st-Century Life and Career Skills: All students will demonstrate the creative, critical thinking, collaboration, and problemsolving skills needed to function successfully as both global citizens and workers in diverse ethnic and organizational cultures. Strand A. Critical Thinking and Problem Solving Strand C. Collaboration, Teamwork, and Communication Strand E. Communication and Media Fluency Strand F. Accountability, Productivity, and Ethics Standard 9.2 Personal Financial Literacy: All students will develop skills Information, Media and Technology Skills: _x_ Information Literacy Media Literacy _x_ ICT (Information, Communications and Technology) Literacy Life and Career Skills: _x_ Flexibility and Adaptability _x_ Initiative and Self-Direction _x_ Social and Cross-Cultural Skills _x_ Productivity and Accountability

2 and strategies that promote personal and financial responsibility related to financial planning, savings, investment, and charitable giving in the global economy. _x_ Leadership and Responsibility Strand A. Income and Careers Strand B. Money Management Strand D. Planning, Saving, and Investing Strand F. Civic Financial Responsibility Standard 9.3 Career Awareness, Exploration, and Preparation: All students will apply knowledge about and engage in the process of career awareness, exploration, and preparation in order to navigate the globally competitive work environment of the information age. Strand C. Career Preparation Standard 9.4 Career and Technical Education: All students who complete a career and technical education program will acquire academic and technical skills for careers in emerging and established professions that lead to technical skill proficiency, credentials, certificates, licenses, and/or degrees. Strand A. Cumulative progress indicators for foundational knowledge and skills Strand B. Cumulative progress that are specific to the career cluster Enduring Understandings: Students will understand that... Managers need to estimate future revenues, costs, and profits to help them plan and monitor operations. EU 2 Using cost-volume-profit analysis to identify the levels of operating activities is needed to avoid losses, achieve targeted profits, and plan future operations. Essential Questions: What financial tools are available to aid in making informed decisions concerning future growth? What two types of costs influence management s decision and why are they important?, EU 2 How is cost-volume-profit analysis used for decision making? What is the simplest way to verify the accuracy of a breakeven calculation? EU 2 How does contribution margin differ from gross profit? What would be the effect on the breakeven point when the selling

3 price increases/decreases, the fixed costs increase/decrease, and/or variable costs increase/decrease? Knowledge: Students will know... Skills: Students will be able to The cost characteristics that influence future financial decisions. How to plan sales for a desired net income. Calculate sales to earn planned net income. Determining the sales mix needed to earn planned net income., EU 2 Vocabulary and accounting concepts pertaining to cost volume profit analysis. The importance of a Breakeven analysis. The effects of changes in volume, costs, contribution margin rate, and sale price. Effective sales mix strategy., EU 2 Analyze total cost versus unit cost. Identify variable and fixed cost characteristics. Calculate the contribution margin per unit. Prepare an income statement with contribution margin. Calculate the breakeven point for existing and new products. Create a Breakeven Income Statement and using it to plan sales mix. Calculate the effects on net income of changes in unit sales, variable costs, fixed costs, and volume. Stage 2 Assessment Evidence Recommended Performance Tasks: Each unit must have at least 1 Performance Task. Consider the GRASPS form. You are hired as a Financial Manager for Rafliff Corporation which produces lawn fertilizer spreaders. Ratliff is considering using computer-based machines to increase the productivity of the manufacturing process. The new machine would reduce variable costs by $4.20 per unit but increase monthly fixed costs by $10, Given varying unit sales, support your position of whether or not Ratliff should purchase the machine by creating a PowerPoint presentation to present your findings to the CEO. Other Recommended Evidence: Tests, Quizzes, Prompts, Self-assessment, Observations, Dialogues, etc. Answer unit questions Define vocabulary terms and accounting concepts concerning cost volume profit analysis. 1. breakeven point: the amount of sales at which net sales is equal to total costs 2. contribution margin: income determined by subtracting all variable costs from net sales 3. fixed costs: costs that remain constant regardless of change in business activity 4. sales mix: relative distribution of sales among various products 5. total costs: all costs for a specific period of time 6. unit cost: an amount spent for one unit of a specific product or service

4 7. variable costs: costs that change in direct proportion to a change in the number of units Multiple choice/true and false/ matching questions on management decisions using cost volume profit analysis. Completion of accounting problems Test and quizzes on unit content Practice Set/Reinforcement Activity Stage 3 Learning Plan Suggested Learning Activities to Include Differentiated Instruction and Interdisciplinary Connections: Consider the WHERETO elements. Each learning activity listed must be accompanied by a learning goal of A=Acquiring basic knowledge and skills, M=Making meaning and/or a T=Transfer. In this unit on Management Decisions Using Cost-Volume Profit Analysis, you are to introduce the Enduring Understanding and essential Qquestions and the students need to know how to use cost-volume-profit analysis to identify the levels of operating activities needed to avoid losses, achieve targeted profits, and plan future operations EQUIP STUDENTS (ACQUIRE NEW KNOWLEDGE) Define unit terms and concepts (A) Prepare an income statement reporting contribution margin (A) Calculate contribution margin, breakeven point, and plans for net income (A) Calculate the best sales mix, sales dollars and units sales for planned net income (A) Calculate Breakeven in Sales Dollars and Unit Sales and Preparing a Breakeven Income Statement. (A) Calculate Sales to Earn a Planned Net Income. (A) Calculate the Effect of Volume Changes on Net Income. (A) Calculate the Effect of Changes in Selling Price. (A) Afford opportunities for students to express levels of concern and understanding. (M) Determine the effects on net income of changes in unit sales price, variable costs, fixed costs, and volume (A, M) Calculate Contribution Margin and Breakeven Point. (M, T) Calculate the effects on Net Income of Changes in Unit Sales Price, Variable Costs, Fixed Costs, and Volume. (M, T) Calculate Sales Mix. (M, T) Take a graded assignment and explain where you made a mistake(s) and what you would do to fix it. (M, T) Use formative assessments and summative assessments for basic student understanding and application. (M, T) Prepare an Income Statement Reporting Contribution Margin. (A, M, T) Ensure that there are ongoing cycles of model, practice, feedback, and adjustment built into the unit. TAILORING FOR DIVERSE LEARNERS Assess prior knowledge and skills through differentiated activities to accommodate different knowledge and skills levels.

5 Provide students with open-ended questions, activities, assignments, and assessments that enable students to give different but equally valid responses. Appeal to various modalities (e.g., present information orally, visually, and in writing). Accommodate students with different learning styles by providing opportunities for them to work alone and in groups. All students choices of products (e.g., visual, written, oral) for activities and assignments. Provide students with options for demonstrating understanding through various products and performances without compromising the goals or standards.