Berkshire Threaded Fastener Case Study

3810 Words Mar 3rd, 2011 16 Pages
Table of Contents

Page

Case Summary 3

Problem Statement 3

Introduction 5

Question 1 7

Question 2 9

Question 3 13

Break-Even analysis 15

Variance analysis 18

Question 4 20

Case Summary

Berkshire is one of the eight companies in threaded fasteners industry in New England. The company produces 3 types of metal fasteners (nuts & bolts), including 100 series, the 200 series and the 300 series. The products are sold by the company’s salaried sales force throughout New England. In 1973, Berkshire’s share on industry sales in New England was 12% for
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Example: Actual cost of labor for 100 series = cost ratio × total actual cost of labor Actual cost of labor for 100 series = 0.439 × $ 1,382,000 = $ 607,075

| |100 series |200 series |300 series |TOTAL

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