Module 1 - CaseAccounting Cost Systems and Cost BehaviorAssignment OverviewPreparation of an Income Statement for The Serious Reader CompanyThe first case of this course provides an opportunity to prepare a segmented variable costing (contribution margin, behavioral) income statement and analyze the information. This is a very small company and the information may seem simplistic at first glance. Don’t forget that numbers and hands-on practice best illustrate many basic accounting concepts.The Serious Reader Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classifies all books into five categories based on cost of acquisition and estimated sales price. See below for details about books purchased and sold during the last year (20XX). Price Categories A B C D E Units Sold 4,000 1,000 500 400 400 Unites Purchased 6,000 1,200 1,000 1,000 1,000 Resale Price $4.00 $12.00 $20.00 $45.00 $60.00 Cost $0.50 $4.00 $10.00 $20.00 $20.00 In addition to purchasing inventory (used books), the company incurs some operating expenses. Variable Operating Expenses Shipping per book $1.50 Common fixed expenses Internet-related costs $10,000 Travel, etc. $4,000 Advertising $1,000 Other overhead $5,000 Case AssignmentRequired:Computations (use Excel)Prepare a segmented variable costing (behavioral) income statement for the company in good format.Prepare a second variable costing statement assuming 90% of all the books in each category purchased were actually sold.Prepare a third variable costing statement assuming that the price is increased by 50% for all five categories (use original sales information).The owner enjoys the used-book business. Any suggestions as how to turn this into a full-time business venture so the owner can quit his other job? Prepare another income statement to support your idea.Memo (use Word)Interpret the results from the computations and explain how the information is useful. Write a 4- or 5-paragraph memo to the owner of the business. Start with an introduction and end with a recommendation. Each of the four or five paragraphs should have a heading.Short essay to comment on the questions below (use Word). Start with an introduction and end with a summary or conclusion. Use headings. Maximum length of two pages.Why do many organizations make the effort to prepare a different type of income statement for internal purposes?Variable costing is not just about preparing income statements. Provide at least three scenarios in which understanding how costs behave is useful.Assignment ExpectationsEach submission should include two files: (1) An Excel file; and (2) A Word document. The Word document shows the memo first and short essay last. Assume a knowledgeable business audience and use required format and length. Individuals in business are busy and want information presented in an organized and concise manner.

Assignment ContentThis week, you have the opportunity to provide a brief summary of what you have learned about Islam. You will also explore differences between the various groups within Islam and understand current practices today.Complete the Understanding Islam worksheet.

THE CASE OF THE DRIVER WHO HAD ONE TOO MANYSam was insured under a life insurance contract policy that excluded death due to suicide. The policy had a face amount of $1 million. Two weeks after taking out the policy, Sam was driving home from his promotion party while intoxicated. He lost control of his car when a dog ran in the road and was killed when the car hit a utility pole. There was no one else involved in the accident. The weather was clear and the road was in good shape and well lighted. Sam’s insurance company refused to pay and Sam’s wife sued the company to force payment.The TrialTestimony at the trial proved conclusively that Sam was legally intoxicated when he left the party. There was also proof that there was nothing in the policy about lack of coverage in the event of an accident due to intoxication.The Arguments at TrialThe insurance company’s attorneys argued that benefit provisions apply only to death due to accidents – unintended and unavoidable mishaps - and that, although Sam appeared to have been in an accident, his death was due to his being intoxicated and therefore not an accident. They further argued that this concept was so logical that it did not need spelling out in the insurance policy. The estate’s attorneys argued that because the policy was silent about accidents due to intoxication, the benefit provision should apply regardless of the cause of the accident. The parties had a contract and all exclusions must be spelled out in the contract in order to be effective.Questions to DiscussWho do you think has the stronger argument, the insurance company or Sam’s estate? Why?If you were the jury hearing this case, how would you decide? Why?What do you think the rule regarding coverage of accidents due to use of drugs or excessive alcohol should be?Please refer to the reference book Business Law, Text and Exercises, 9 edition (Miller and Hollowell) Cengage Advantage . Use this refrerence extensivly and refer to chapter number and page. thedthed (can use: 8th preferred over 7th)(Mind Tap is not required)Miller and Hollowell Cengage Advantage