Ma610 Managerial Accounting

Managerial Accounting: Management Control Systems EVADISCUSSION QUESTION 5-2Managerial AccountingLesson 5: Management Control SystemsUpon completion of the Required Readings, write a thorough, well-planned narrative answer to the following discussion question. Rely on your Required Readings and the Lecture and Research Update for specific information to answer the discussion question, but turn to your original thoughts when asked to apply, evaluate, analyze, or synthesize the information. Your Discussion Question response should be both grammatically and mechanically correct, and formatted in the same fashion as the question itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your responses and document in a bibliography using APA style.Discussion Question 2 (50 points)Complete Problem 10-41 (p. 424). (50 points) (A 1-page response is required.)Grading RubricPlease refer to the rubric on the following page for the grading criteria for this assignment.Managerial Discussion 5-2Problem 10-41FactorYear 2Year 1Revenues$4,463$4,510Operating Expenses3,5693,615Cash Income Taxes292255Average invested cap2,8542,689Question 1Computation of Company's Economic Added Value for year 1 and Year 2Cost of capital =11.5%EVA = Net profit operating profit after–tax – (WACC * Capital invested) FactorYear 2Year 1Revenues $ 4,463.00 $4,510 Operating Expenses $ 3,569.00 3,615Cash Income Taxes