Janis Maraya March 16, 2015 ACC/543 Thomas Frank 4.16 1. Should Yoklic make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. Manufacture Purchase Direct Materials 4 0 Direct Labour 30 0 Variable Overhead 15 0 Fixed Overhead 25 25 Purchase Cost 0 55 Total Unit Cost 74 80 Although the company would save $49 if it chose not to manufacture, the purchase of subassemblies would have a slight increase of $6. To save any money it would be better to manufacture than buy.
Initially, for at least the first few months, there will be a lag between what we have available and what the customers or clients know we stock. This could cause decreased inquiries or sales of the specific new models until updated marketing materials are distributed and the website is updated. Another potential risk is the longevity, or “shelf-life” of both the pediatric and bariatric models. We expect there to be increased “wear and tear” for both models, which could reduce the rentable time by 5-10 weeks, decreasing the profit for the rental models. Lastly, increased inventory requires more space.
They gave a good estimate of how my decisions would affect business performance for the upcoming quarter. I was able to look at the pro-forma statements and make adjustments in my decisions before moving into the next quarter. For example, in quarter 2, I had decided to not add another sales site due to not having enough cash on hand. After looking over the pro-forma statements, I realized that I would have enough money to add another location for the next quarter and still have more than $300,000 cash left over at the end of the quarter. Operating efficiency was improved using just-in-time and lean operations techniques.
When the sales are increased for his division, bonuses could be paid to the managers. Frank Campbell reviewed the purchase orders received from November and December. He wanted to determine if any shipments to the customers before December 31 may increase their sales. The alternative way to report sales was to increase sales by sending out two shipments to customers. Although the customers only needed the shipment the following year, this would be a way to exceed the targeted budget.
Under what circumstances? As I mentioned before, by shifting the revenue Mr. Huizenga credited more revenue and market value to his two cross-ownerships, and got the reasonable excuse to trade players and reduce the payroll in the next year. Furthermore, he will avoid certain among of different kinds of state/federal tax. On the other hand, Mr. Huizenga sold an actual profitable team by offering a price under its actual market value led to control the terms of the deal to benefit other holdings. 4.
• Turnaround required The need for timely reporting at month end will also provide guidance as to the degree of mechanization and the level of complexity that will be appropriate. Because the system is to be used for both multi-year planning and monthly tactical planning, the system should be designed to provide for quick turnaround of results at month end. Accordingly, consideration must be given to minimizing the data input requirements. • Cost/benefit analysis The new system should be able to provide the quality of information so that its
Several areas will be evaluated, but profit growth over last year will be the determining measure. The company has established a compensation system based on job performance with pay grades related to the requirements and responsibilities for each position. The key positions and also the hard to recruit positions may receive a market premium. The company also will supplement this pay system
The manager cited the resulting high depreciation charges as the justification for the price boost. He asked the president of the company to instruct Division P to buy from S at the $220 price. He supplied the following information: P's annual purchases of component 2,000 units S's unit and batch-related costs per unit $190 S's capacity related costs per unit $20 S's required return on investment $10 Suppose there are no alternative uses of the S facilities. Required 1) Will the company as a whole benefit if P buys from the outside suppliers for $200 per unit? 2) Suppose the selling price of outsiders drops another $15 to $185.
Goal Definition: Advise Management on the various options regarding the outsourcing contract and the decision to proceed with JAFAR contract. Quantitative Analysis: • Exhibit 1 shows the effects of the external procurement of CTR1 units. Accepting the outsourcing contract was overall unfavorable to Seagull as it is costing the company $600K per year. • Exhibit 2 shows the net income effect if the outsourcing contract is cancelled or modified. Reducing the order to 2 000 units is the most financially favorable option for the company as a whole.
Therefore, CUTCO must consider strategic options that will lead to substantial growth. Limitation of Retail Expansion CUTCO’s current annual revenue is $260 million, which means it needs to generate an additional $740 million in annual revenues to reach its long-term goal. Each store, based on estimates from the pilot stores, is capable of achieving revenues up to $300,000. As CUTCO increases its prices by 5% every two years, its revenue would grow to $380,000. In order for CUTCO to make up the difference of $740 million in missing revenue, it would need to open 2,000 stores in the U.S. With an initial expenditure of $150,000 per store, this venture would cost the company $300 million.