Dakota Office Products - Case Analysis Essay examples

1615 WordsFeb 17, 20117 Pages
Dakota Office Products Case Analysis BUSA 5061: Accounting For Managerial Decision-Making November 4, 2010 The following analysis is written for Dakota Office Products to evaluate current business operations and recommend future actions necessary to ensure company success. In our analysis of the company we will identify inefficient business practices that have led to the companies first profit loss in its history. We will evaluate the company’s current pricing structure, ordering methods, shipping and delivery process, and deficiencies in cash flows. Dakota Office Products current pricing system is inadequate for its current operating environment. Dakota Office Products is a regional distributor of office products to…show more content…
In (Table 3) and (Table 4) we apply these allocation rates with Customers A and B to illustrate how costs are affected by the ordering habits of customers Table 3 |Customer A |Allocation Rate |Qty | | | | |Sales | | | | $ 103,000 | | |Cost of Items Purchased | | | | $ 85,000 | | |Gross Margin | | | | $ 18,000 | | |Processing | $ 52 |200 | $ 10,400 | | | |Shipping/Freight | $ 6 |200 | $ 1,200 | | | |Desktop Delivery | $ 220 | |

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