Solutions Guide: Please do not present as your own. I sometimes post solutions that are totally mine, from the book’s solutions manual, or a mix of my work and the books solutions manual. But this is only meant as a solutions guide for you to answer the problem on your own. I recommend doing this with any content you buy online whether from me or from someone else.
CASE 13–30 Make or Buy; Utilization of a Constrained Resource [LO1, LO3, LO5] Garrison, Noreen & Brewer. 13th edition Managerial Accounting. Entire case.TufStuff, Inc., sells a wide range of drums, bins, boxes, and other containers that are used in the chemical industry. One of the company’s
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As an alternative to adding another welding machine, management has considered buying additional drums from an outside supplier. Harcor Industries, Inc., a supplier of quality products, would be able to provide up to 4,000 WVD-type drums per year at a price of $138 per drum, which TufStuff would resell to its customers at its normal selling price after appropriate relabeling. Megan Flores, TufStuff’s production manager, has suggested
1. The product margins computed by the accounting department for the drums and bike frames should not be used in the decision of which product to make. The product margins are lower than they should be due to the presence of allocated fixed common costs that are irrelevant in this decision. Moreover, even after the irrelevant costs have been removed, what matters is the profitability of the two products in relation to the amount of the constrained resource—welding time—that they use. A product with a very low margin may be desirable if it
Corporate finance is important to all managers because it allows a manager to be able to predict the funds the company will need for their upcoming projects and think about ways to organize and acquire those funds.
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
If the Lender receives money as a result of making such a claim as part of the distribution of the Borrower’s estate or any other reason, it may, subject to the requirement of any law, set that money aside. Subject to the requirement of any law, the Lender need not apply that money to pay the guaranteed debt until it has received sufficient to discharge the guaranteed debt and until that time your liability to pay the whole of the guaranteed debt will not be affected.
Delrawn Small was a victim of racial police brutality last year which proves that the law enforcement is racially biased. Mr.Small was unarmed and killed for no reason by a police officer in front of his family. New York Times stated that Mr.Small’s girlfriend testified during trial. Mr. Isaacs, an off-duty police officer in an undercover car, had twice cut them off as they were traveling down the street in the far left lane. Mr.Small was driving with a baby and was perhaps bothered by the fact that an unexpected maneuver could have landed his family in an accident. A video that was taken before and at the time of his death went viral not long after Mr. Small was killed. Ishowed him approaching Mr. Isaac's car from the driver's side and then
When compared with the industry, the inventory turnover of S&S Air of 21.43 times is well above the industry upper quartile of 10.89 times. This indicates that S&S Air is much more efficient than the industry average at inventory management.
Solutions Guide: Please do not present as your own. I sometimes post solutions that are totally mine, from the book’s solutions manual, or a mix of my work and the books solutions manual. But this is only meant as a solutions guide for you to answer the problem on your own. I recommend doing this with any content you buy online whether from me or from someone else.
Simple Sizes is a one of a kind product, where there aren’t any existing channels for our market. However, we plan on creating a distribution channel that increases over time by appealing to clothing stores at first and expand in the future we would appeal to really any market to show size relationships with everyday items like furniture, appliances, etc. to gain a better understanding of the ratio of the item to you. The availability for distribution channels is endless, just pending on the idea that the consumers will find this useful.
Going into 2004, Bob Moyer planned to produce 10,000 bicycles at Mile High Cycles. Construction of his bicycles includes the utilization of three departments, frames, wheel assembly, and final assembly. During this year, Mile High Cycles ended up actually producing 10,800 bicycles to meet higher than expected demand. Bob is curious as to whether or not he was successful in maintaining costs to meet these higher levels of demand.
7. Though numbers given in the cost data can not be contested, I would definitely contest the way total cost has been computed. The item 345 department operates within a large manufacturing facility that churns out number of other products too. Hence judging the profitability of item 345 on the basis of total cost is not practical.
There are additional information required in order to deal with this iPhone worth of $1,000 amount. First we need to know the motive of the client to give the iPhone to the employee. If the client gives his personal characteristics, it is not regarded as ordinary income and would not normally assessed to the recipient, Hayes V FCT (1956) 96 CLR 47 and Scott V FCT (1966) 117 CLR 514. In the Scott case, the Court consider if gift is a product of friendship or other personal characteristics, he already full remunerated and it is unexpected. In the same token, to ignore the receipt of the iPhone from being assessed either under s 6-5 or s 15-2, we need an information which can support all the above factors mentioned in Scott’s case.
Milligan’s Backyard Storage Kits, a mail order company, sells a variety of backyard storage unit kits and landscaping decorations to its customers. Although the company makes a profit, David Milligan, the company’s owner, realizes that he can improve his company’s operations if he better manages his inventory. Mr. Milligan requests your help in preparing an Inventory Analysis worksheet. The Inventory Analysis worksheet provides Mr. Milligan with information about his annual sales, cost of goods sold, gross profit, and markup on this products. Preparing the worksheet for Mr. Milligan requires you to insert columns, use several functions, and apply proper formatting to the
Should Caledonia focus on cash flows or accounting profits in making its capital-budgeting decisions? Should the company be interested in incremental cash flows, incremental profits, total free cash flows, or total profits?
We are still losing money after the second year. However, my group realized that new tooling was an important cost. Therefore, we start thinking how to reduce it. We find out that if the demand stays between 300,000 to 345,000 units, the supplier will not need new tools. Then, it will bring the cost of new tooling to 0 for the coming years. Let’s take the worst case scenario and try to compute the savings for year 3, if the pistons are outsourced.
14-26 (Analytical procedures) the following data was taken from the production and accounting records for Casuccio Manufacturing, Inc.
The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011, then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011.