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