Production costs for the 15,000 containers needed annually are as follow: Direct materials $35,000 Direct labor 15,000 Unit-related overhead 5,000 Product-sustaining overhead 6,000 Allocated facility-sustaining overhead 14,000 A supplier has offered to provide all 15,000 containers at a price of $4.50 per container. If Whitney, Inc. accepts the offer; it will rent the released space for an annual rental fee of $12,000. Should Whitney, Inc. make or buy the containers? (2 points) Question 6:In addition to selling custom-designed jewelry, Darrah’s Jewelry Store also offers repair and appraisal services. After reading the following profit report, decide whether Darrah’s should drop the appraisal service.
If each trailer contains 20 outrigger components, that means 800 outrigger components are manufactured a year at a cost of $120,080. This is compared to $86,560 if Mayes manufactured the components (See Table 1). That is a savings of $33,520 (a savings of 28%). However, the extra lead-time and an increase in inventory carrying costs would negate some of the
State of Confusion State of Confusion The state of Confusion has decided to enact a statue that requires all trucks and towing trailers that use their highways to use a B-type truck hitch. The only company that manufactures the B-type hitches is located in the state of Confusion. This new statues requires that any trucker who wants to drive through the state of Confusion would have to install the new hitch or not drive through the state of Confusion. The federal government has not regulated the truck hitches required on the nation’s highways. Tanya Trucker, owns a trucking company in the state of Denial is not happy about the additional expenses she will have incur by installing these new truck hitches.
The restructuring of Auto World will have an impact on their current earnings and the store closures need to be properly disclosed. FASB ASC has specific guidelines that must be followed to report discontinued operations. According to numerous ASCs, Auto World’s closures of the Pit Stop Centers should not be reported as discontinued operations in Auto World’s second quarter financial statements. Rather than being reported as discontinued operations, the Pit Stop Center stores should be considered as continuation of operations. An entity that is classified as disposed or held for sale, under ASC 360-10-45-9, should be reported as discontinued operations, under ASC 205-20-45-3, when the two conditions under ASC 205-20-45-1 are met.
Hugh McBride is the newly appointed Chief Executive Officer of McBride Financial Services. The company offers one-stop decreased mortgage services within the Dakota’s, Wyoming, Idaho, and Montana. Huge McBride has been involved within discussions that maybe described as unethical or illegal in the scenario. Presented in this paper are the study of problems and issues that McBride Financial services could experience because of the lack of impecunious decisions carried out by the company’s CEO. Hugh McBride will address who the company’s stakeholders are, define the end-state vision, identify and evaluate alternatives, identify and access the risk of the alternatives, recommend optional solutions, create and implement solutions, and to access the outcomes.
Therefore you cannot use the "to/from/subject/date" format. What you must do is to submit a report (with a title at the top of page 1) attached to a letter of transmittal. See page 142 of the textbook for an example. MOUNTAINSIDE INDUSTRIES Mrs. R. K.Hill, owner of Mountainside Industries, has called you in as a consultant. Believing that tighter coordination among the divisions of her company was necessary, she created the post of general manager a year ago and hired Don Henson, an experienced accountant, to fill it.
In order to achieve her marketing objective, she has to allocate communication budget in such a way that it would result in 10% increase in profit over 2007 estimates. Marketing Mix Strategies: RBS had high distribution penetration. Maximum distribution was of 1 lb box. There was a 150 person sales team to manage retail and wholesale accounts. Sales-force was incentivized by a quota system with quarterly volume quotas.
Can you determine the coefficient of variation for the DuraBend™ and DuraFlex™ product lines? c. How much inventory has Steel Works been holding? How much should they have been holding? d. Although no data is given for the Custom Products division, are there any obvious opportunities that are suggested by the information in the case? 參考本章一開始的案例並回答下列問題。 a.
(4 points) Problem 4: We need 1,000 electric drills per year. The ordering cost for these is $100 per order and the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 120, drills cost $78; for orders of 120 or more, the cost drops to $50 per unit. Should we take advantage of the quantity discount? (4 points) Problem 5: George Heinrich uses 1,500 per year of a certain subassembly that has an annual holding cost of $45 per unit.
These changes will add $1.00 per bottle to the variable cost of sales. Calculate the new break even given the increase in variable costs. After charging $1.00 more per bottle, the company would have to sell 1,600 bottles per day which would be 20% sales loss. 3. To reposition its water as a premium product, Healthy Spring will require an increase in its advertising and promotion budget of $900 daily.