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Company Daimler AG  

Choose a company that MANUFACTURES a product or products.    (CLOs 1,2,3,5,6)

The company must be listed on a stock exchange, it may be domestic stock exchange, such as New York Stock Exchange (NYSE) or foreign stock exchange, such as Tokyo Stock Exchange (TSE). All companies listed on the stock exchanges are publicly traded and the information you will need can be found on the company’s website. This includes but is not limited to financial reports, annual reports, and investor reports. Information may be found through other sources as well (such as 10-Q and 10-K reports for domestic companies). So please use all tools available to you.

NOTE: ONLY ONE STUDENT CAN WORK ON A GIVEN COMPANY AND THEREFORE REQUIRES THE APPROVAL OF YOUR PROFESSOR. APPROVAL WILL BE GRANTED ON A FIRST COME FIRST SERVE BASIS.

Once your selection has been approved, you will do the following:

1. Provide the name of the company and devote at least one (1) page describing its (a) organizational structure, (b) the product or products manufactured, (c) their societal impact or ethical issues they have encountered, and (d) the markets it serves.
2. Identify the method of calculating manufacturing cost for the company.
3. Determine if the cost method the company has chosen is most appropriate and explain three (3) reasons why the method is appropriate.
4. If you decide the cost method the company has chosen is not appropriate, write a recommendation as if you are sending it to the company for real and discuss three (3) reasons to support your recommendation.
5. Suppose your selected company is planning to launch a new product. The target profit for this new product is roughly 1/12 the entire company’s most recently reported annual profit (before taxes). The fixed cost for the new product is estimated to be about 40% of the most recently reported annual cost of goods sold. The contribution margin per unit is smaller by a factor of 20 of the new product’s fixed cost. How many units must be sold for the new product line to breakeven? You must show ALL your assumptions and calculations.
6. This assignment needs to be 5-7 pages in total (cover page and reference page/s are not included in this count).

• The cover page and reference page/s are not included in the page requirement or word count. These should be in addition to page requirements.
• Papers need to be formatted in proper APA 6th Edition style.
• Each paper requires a minimum of at least three outside peer-reviewed sources for your references.

  Acceptable/credible sources include: Academic journals and books, industry journals,  and the class textbook.   You could use credible business website sources in addition to the peer-reviewed required sources, but avoid Wikipedia and Google. These are academic papers that need to include scholarly research.

• Using your textbook is required as well to demonstrate that you have read the required material.

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