preview

Dakota Office Products - Case Analysis Essay examples

Better Essays

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 | |

Get Access