Complete Internet Exercise 13-77 (p. 575) on the job-costing system at Dell Computer. Address the requirements for this problem by visiting Dell Computer’s website (www.dellcomputers.com). (1-page response is required.)

1. Dell Company provides many products; however, in the assignment, the focus is on Dell’s laptop, specifically the Vostro model. Vostro laptops are used for small business computing, which provides the right balance of business features and provides high-level support for small business operations and management of activities. The Vostro-5000-laptops has a screen size of 14 inches, which is a new product series 14” with Windows 10 Pro operating system. The laptop is thin; it is lightweight of 1.74kgs, has colorful designs, and provides impressive performance for business professions seeking mobility and style. The laptop tech specs and processor are of the 6th generation and can perform up to Core i7-6500U with a speed of up to 3.10GHz, has multiple storage options including 1TB2 hard drive as well as a 256GB responsive storage. The laptop’s price and delivery are $2,448.99(Dell.com, Vostro 14 5000 Series Laptop, 2020). The model prices may vary hence more than one price depending on the customization options of the buyers.
2. The total revenue for Dell’s FY 2020 was $92,154M with the products contributing $69,918M equivalent to 75.9% and services giving $22,236M, equivalent to 24.1%. When comparing the change in the average selling price of desktops PC, in the product category, revenue in FY 2019 was $70,707M, and the change was a decrease of $(789), equivalent to a (1) % change. The 1% decrease is attributed to the decline in product revenue for ISG servers and networking as well as increased net income for VMware and CSG(Dell.com, 2020).
3. After reviewing the current consolidated statement of operations, the COGS were $63,221M, selling, administrative, and engineering expenses was $21,319M, and depreciation/amortization was $6,143M. The table below shows the computed variable COGS percentage, average contribution margin, and the breakeven. The reported operating income is a loss of $2,622M, which seems plausible.

References

Dell.com. (2020). Form 10-K Dell Technologies Inc. Retrieved from Investors: http://www.annualreports.com/HostedData/AnnualReports/PDF/NYSE_DELL_2019.pdf

Dell.com. (2020). Vostro 14 5000 Series Laptop. Retrieved from Dell.com: https://www.dell.com/lt/business/p/vostro-14-5459-laptop/pd