Telephone – A telephone maintains a few different features rather than just receiving and making calls. At work the phones that we use are often different to
Financially speaking Sun Hydraulics has seen measure growth in sales from 1996 through 2000. Their revenues have grown from $47,374,000 to $66,268,000 from 1996 to 2000 respectively, but I was disappointed in Sun’s fluctuating profitability during this same time, seemingly caused by continually growing labor cost. As a percent of sales, profitability fluctuated from (1%) in 1996 to a high of 7% in 1998. There were steady increases in Labor and Manufacturing Overhead that have adversely affected the bottom line from the high water mark in 1998. As Allen looks to the future he faces a
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
Tyva produces a undyed cloth sandals. These come in two different styles standard and deluxe. The deluxe sells for $195.00 and the Standard for $120.00. The purpose of this brief is to review the May actual statements and determine the June budgeted cash flow. To identify and understand the ending cash balance of Tyva (Datar & Schoenbeck, 2013). Review the product sales mix, comparison of the monthly budget statements for significant changes. Finally, a recommendation will be given on how the net income can be improved based on the analysis.
In order to meet customer demands for higher product quality, to comply with federally-mandated environmental regulations, and to reduce production costs, HCC must spend $2,000,000 within the next three years to upgrade equipment. The upgrade is expected to result in production efficiencies that will lower material and labor costs by reducing defective products, process waste, in-process inventory, and production man-hours through simplified work processes. It has been over a decade since significant modifications were made to the production facilities. Those changes were mostly technical in nature and did not substantially alter work processes or reduce overall employment. The average productivity gain in the industry for the past five years has been 3% per year. Financing for the loan to purchase the equipment
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
The next step would be for management to know precisely how their decision to downsize capacity would impact the firm’s future operating costs, and also identify specific areas in which the firm could achieve additional cost reductions. Additionally, the cost analysis would help forecast the firm’s operating costs and projected profits (or losses) for the upcoming fiscal year. However, before we can proceed with such analysis, an examination of how the various categories of Continental’s costs behave is in order.
Synopsis and Objectives The owner of a midsize folding carton printer is considering the replacement of an old machine for cutting sheets of paper from rolls (a sheeter) with a new one. This standard capital budgeting analysis, which requires identification of both the relevant cash flows and the relevant discount rate, is enhanced by an alternative that is not explicitly stated but can be readily identified and analyzed—to outsource all sheeting and close down the sheeting operation. This alternative, which turns out to be financially optimal based on quantifiable case facts, forces students to consider strategic and other nonquantifiable
Investment in the Detroit plant has lagged significantly from other plants in the corporation. As a result, the infrastructure and machinery is outdated, haphazard, and inefficient.
Synopsis and Objectives The owner of a midsize folding carton printer is considering the replacement of an old machine for cutting sheets of paper from rolls (a sheeter) with a new one. This standard capital budgeting analysis, which requires identification of both the relevant cash flows and the relevant discount rate, is enhanced by an alternative that is not explicitly stated but can be readily identified and analyzed—to outsource all sheeting and close down the sheeting operation. This alternative, which turns out to be financially optimal based on quantifiable case facts, forces students to consider strategic and other
1. The current costing system is a simple costing system. This type of system is functional in terms of its simplicity, but often relies on allocations that may not be accurate. The choice of allocation drivers is usually based on convenience rather than the specific activity. In this case, the machine hours allocation seems to be arbitrary, at 2-to-1 brass to chrome. Yet, direct manufacturing labour is not allocated in accordance with the same ratio. If a unit of chrome takes 3.5 hours compared with 1.5 hours of brass, then allocating overhead costs on the basis of 2-to-1 distorts the true costs of that overhead. Thus, the way that Scotty is implementing its simple costing system is not delivering accurate cost information. Further, the addition of the new product (chrome) serves the purposes of reducing the overhead allocation for brass, making brass look more profitable than it would have looked without chrome in the lineup.
Stewart Box Company needs to address the Carton Factory operating under capacity. The underutilization of this plant may cause inefficiencies in the company’s operations thereby increasing its standard costs. This inefficiency in operations is evident in the unfavorable variances in the company’s Income Statement and Spending Report.