Introduction
Producers Cooperative serves 9,591 cooperative members within their one hundred miles radius sales territory of Bryan, Texas. Producers had lead their peers in patrons’ capital where their member’s equity as at 2003 was 48.12% of total assets compared to the group average of only 30.55% and the revolving cycle of five years was the shortest compared to the group average of 17.6 years. This cooperative diverse economy of feed, fertilizer fuel and agricultural supplies were also performing greater than their peers as indicated by Producers’ higher gross margin of 18.69 of sales versus the group average of 16.55%.
The purpose of this report is to present the outcomes of the Producers Cooperative board’s decision to pay out annual profits differentially as determined by individual department sales where the desired results and unintended consequences resulted from the decisions are discussed. The discussion on the appropriate performance measure for a cooperative success and evaluation on the option of reducing the cooperative stock’s prices to reduce member’s personal money tied up in cooperative stock for a five year revolving cycle are also carried out.
There are several issues should be taken into account before presenting the outcome of the decision proposed by Deatherage, the General Manager. The imbalanced residual earning to cooperative members had occurred to different profits earned by different sales department. Over the period of 1999 to 2003, supply
If we assume that the 1991 products, prices, sales volumes, materials costs and overhead are unchanged from 1990 and that there are no process improvements that would lead to a reduction in the direct labor of a product, it can be inferred that the company’s profits would be identical to those of 1990, as stated in Appendix B. However, if the same is assumed
As we analyze Figure 2, we have determined from a costs perspective that basing production manager’s bonuses off of a percentage of sales is unethical because he is not being based off of his “performance.” For starters, in 2008, CBI expanded and began producing Gera beer, which unlike other exported beer, does not collect an eight dollar deposit fee. Next, from 2008 to 2009, CBI was hit with a $6,128,000 bottling
This article written in the Texas Agriculture, a magazine published by the Texas Farm Bureau, is about all the factors impacting farmers that effect their income. Over the past couple years, a combination of things has caused the average Texas farmers income to drop. The primary audience for this article is the farmers in Texas as they are experiencing these issues first hand. The secondary audience would be consumers who have noticed price fluctuations in products at the store and are wondering the reason.
1.What are conversion factors? Why were conversion factors developed? How do they impact on which bond is cheapest to deliver? Under what conditions would there be no cheapest to deliver? Explain in detail.
According to the fact of this case, Parent Co. (Parent) wholly owns Poor Son Co. (Poor Son) as a legal subsidiary, and both of them all nonpublic companies. However, in January 2007 Poor Son filed a voluntary bankruptcy under Chapter 11 of the U.S. bankruptcy code because of its inability of meet obligations as they became due. Then, Parent claimed the loss of control of Poor Son and deconsolidated Poor Son from its financial statement. Through the bidding process in May 2009, Poor Son and OtherCo, the winning sponsor, filed a joint plan of reorganization to the bankruptcy court, but the plan was rescinded by OtherCo later due to significant market value shrink of Poor Son. After that, the
To start with, we must first understand what a managerial strategy means and how we can apply the appropriately.
In the case of Assessing a Company’s Future Financial Health, the case concentration is on SciTronics, a medical device company, performance measures based on the organization’s three primary financial data sources in Exhibit 1 & 2. Utilizing the 9 steps of corporate financial system, I will be able to analyze the financial health of the company to assess whether it will remain balance over the ensuing 3-5 years. The measures are grouped by focusing on “Financial Ratios” such as: 1.) profitability measures, 2) activity measures, and 3) leverage and liquidity measures. Using the financial data sources, I would be able to make recommendations regarding SciTronics 126 million loan request.
The installation of a berry grader would positively impact the cooperative’s income, while negatively impacting the farmers’ income. With the current system, 450,000 bbls. of berries are paid a premium of 50 cents per bbl, yet when the berries are used only about half of them are actually considered No. 3’s (berries with the best color). So basically, the cooperative is paying a premium on 225,000 bbls. more than it should be, and that worked out to about $112,500 in 1970. It would cost the cooperative $10,000 to install a berry grader, plus the cost of another full-time skilled operator, but it would still impact their income greatly. The farmers’ would probably prefer that the cooperative continue to grade the color using pictures as a guide, because they are being paid a 50 cent premium on about half of their No. 3 berries that should actually be considered No. 2B.
Due to the information, 20 acres of land equal 80 sheep according to the exchange rate of last year, a one-room cabin equal 3 acres of land and equal 12 sheep finally, a plow equals 2 goat and equal 2/3 sheep according to last year’s exchange rate and 2 carts which were traded with a poor acre of land equals 8 sheep plus 400 sheep. So Deyonne’s total assets are 500(2/3) sheep. Deyonne’s liabilities and assets deduction are 35 sheep plus 3 sheep, which will come to 38 sheep,
Sales centre A, they had achieved great success over the last year and consistently outsells other sales centres. In fact, due to the large number of accounts managed by our sales team and larger staff, Sales centre A is expected to sell as much volume as the other two sales centres put together. That means, the expense budget for Sales centre A must be more than other, at least twice time then the other centre. Because, they need a lot of money to pay for their cost, such as Wages, telephone, office supplies, and commission. That seems not fair for Sale centre A.
1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt
As per the case facts, Manzana Insurance’s Fruitvale branch is the least performing branch and the senior VP seeks a report on the same. Their competitor Golden Gate (backed by its corporate parent generated a price war to gain market) is performing much better in terms of most metrics of Insurance business.
Arthur W. Perdue’s quest for excellence in the poultry business began in 1917. Perdue started his company as a table-egg poultry farm. He slowly expanded his egg market by adding a new chicken coop every year. Arthur’s son Frank joined the family business in 1939 after leaving school at the end of his the second year. In 1950 Frank took over leadership of Perdue Farms, which had over 40 employees at the time.
BlueScope Steel is the leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products sold in these markets. The company's
This makes the company look good and they can afford to do this from good financial skills. Decisions like this make a good profit in the long run and all in all this is why it is so important to have a good management team.