Bridgewater Casting, Inc. Case Analysis Essay

The key issue faced by general manager Shelby Givens of Westlake Lanes is whether or not to maintain the current practices of the business or seek new alternatives. She must convince the board that within her allotted one year, progress has been made in improving the business and ultimately convince them that profitability is in the foreseeable future and that their personal debt will be repaid.

Q6: How much production fixed expenses should be allocated to 1 kg of "complete meal"? Give a specific number and your logic to support the

Although the shelves are selling well, the total profit of the company is a concern. An engineer suggested that the current production of model S should be cut back because Model S shelves are sold for $1800 per unit but their costs are $1839. Therefore, company is losing money on each one. But

10. If 12,500 units are produced, what is the total amount of fixed manufacturing cost incurred to support this level of production?

Halee set up a lemonade and cookie stand at the end of her street. She is selling lemonade for $0.25 per cup and cookies for $0.25 each. She sells 15 cookies and 35 cups of lemonade. Her total sales can be represented by the expression shown.

The budget analysis shows that the labor hours of the firm are higher than the budgeted amount. As such, the firm needs to evaluate the cost benefit analysis of making or buying their products. To make this decision, various factors need to be considered. Before making the decision, Peyton needs to evaluate the marginal costs and revenue of making versus buying the products. The firm should take the option which provides the highest marginal profit which is the

2. Considering your answer to item 1, the first three exhibits, and related introductory discussion, is it likely that the accounting system may distort product profit significantly? Why? (Ignore general, selling, and admin expense.)

In the case of Mendel Paper Company which produces four basic paper products lines at one of its plants: computer paper, napkins, place mats, and poster board. Although the plant superintendent, Marlene Herbert is pleases with increased sales he is also concerned about the costs. The superintendent is concerned with the high fixed cost of production, the increases in fixed overhead and even variable overhead. He feels that the production of place mat should be discontinued. His reason for the discontinuation is that the special printing is driving up the variable overhead to the point where the company may not find it profitable to continue with the line. After reviewing the future predictions of the

Supplier A: EOQ = Square root of (2 x 1500 x $1,000) = S.R. of 3,000,000 = 209

Morris Mining Corporation owns and operates mining facilities that are located in the United States, and Canada. This company primarily distributes extracted ores and minerals to their customers. Recently, in January 2015, Morris Mining acquired the mining company King Co. Once the company has been acquired, Mining Morris plans to record the difference of the purchase price and identifiable net assets as goodwill. The identifiable assets and liabilities of King Co. are going to be recorded at fair value on Morris Mining 's books. There has been discussion as to how the company is going to report the fair value for the patent that is part of the assets they acquired from King Co. Rob, an audit manager on the Morris Mining engagement, and Gabriela, the audit senior, are trying to evaluate if the method of the fair value estimate it reasonable.

was 7,920 units. The company has provided the following data concerning the formulas to be used in its

| | | | | | | | | | | | | |75000 | |100000 | |125000 | |150000 | |175000 | |200000 | | |  | |  | |  | |  | |  | |  | |Direct Labor |4.00 |  |3.90 |  |3.80 |  |3.70 |  |3.80 |  |4.00 | |Material |2.00

The whole process throughput time of making a dozen of cookies is 26 minutes. It takes washing, mixing and spooning 8 minutes to make a dozen of cookies. And preparation and bake time totally are 10 minutes. The final step of cooling, packing and accepting payment of cookies takes roommate 8 minutes to finish the cycle. Assume the night capacity is 4 hours, so Kristen and roommate have 240 minutes operating time. Since the oven only holds one tray, the second dozen takes an additional 10 minutes to bake. For example, first dozen of cookies take 26 minutes to make, second dozen of cookies take 36 minutes to make and third dozen of cookies take 46 minutes to make. So we can

We assume that the activities Packing and Co -Packing are able to meet demand if

Bridgewater will discuss through disagreements with their customers just like they do with their employees (Polzer).