Dakota Case Study

1366 WordsDec 5, 20106 Pages
Case Study Dakota Office Supply Shadi Wadi-Ramahi Instructor: Roger Waibel MBA 510 Financial and Managerial Accounting Master of Business Administration School of Adult and Extended Learning Oakland City University September 30th,2010 * Contents 1 Background Information 3 1.1 People / Key Players 3 1.2 Chronology of Key Relevant Events 3 1.3 Key Facts 4 1.4 Concepts 4 1.5 Assumptions 4 1.6 Point of View 5 2 Problem Statement 5 3 Problem Causal Analysis 5 4 Management Theory, Process, Approach 5 5 Recommendations 6 6 Assessment 6 7 Implications 6 8 Answer to questions 7 9 References 9 1 Background Information Dakota Office Products (DOP) is a regional distributor of office supplies with…show more content…
Please see calculations below Dakota Office Products | Income Statement year 2000 for Customer A & B | | | | | Customer A | Customer B | | | | | Dollar | Percent | Dollar | Percent | Sale | $ 103,000 | 121.2% | $ 104,000 | 122.4% | Cost of Items Purchased | $ 85,000 | 100% | $ 85,000 | 100.0% | Gross margin | $ 18,000 | 21.2% | $ 19,000 | 22.4% | Warehousing, Distribution & Order Ent. | $ 11,930 | 14.0% | $ 18,520 | 21.8% | Total Expense | $ 11,930 | | $ 18,520 | | Net Income Before Taxes | $ 6,070 | 7.1% | $ 480 | 0.6% | 4. Customer B has higher overhead cost that actually thought, while customer A ended up with a lower overhead cost. This in return affected the net income. 5. No limitations since all values are given. 6. Customer A pays their invoices faster than customer B, this is
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