sim 1

Relevant Costs, Insurance, Fuel, Oil Lubricants, Tolls, Parts and Small Tools, Hourly wages: Drivers, Trailer Pool Expense

Mr. Mark Tanner bought Therm-eze from its inventor for a total price of $250 000 which included the Canadian manufacturing and distribution rights. He also obtained a 17 year patent on the product in Canada. Mark Tanner will spend 50 cents for the vinyl bag which will be produced by an outside vendor. The die which will be paid for by the Tanner Company will cost $1000. The sodium acetate solution which will be purchased by an Ontario Supplier will cost $1 per bag. When Mark Tanner bought the company from the inventor he received 150 000 stainless steel triggers and any additional triggers need it will cost $1.50 per unit. The felt covers and packaging will cost $0.75 per

ACCT505 Part B Capital Budgeting problem Clark Paints Data: Cost of new equipment $200,000 Expected life of equipment in years 5 yrs Disposal value in 5 years $40,000 Life production - number of cans 5,500,000 Annual production or purchase needs $1,100,000 Initial training costs Number of workers needed 3 Annual hours to be worked per employee 2000 hrs Earnings per hour for employees $12 Annual health benefits per employee $2,500

| Target # of Passengers = Fixed Cost + Target Profit/ Unit Contribution Margin = 3,600,000 + 1,071,428 / (Selling Price – Variable Cost Per unit) = 4,671,429 / (205 – 85) = 4,671,429 / 120 = 38,928.57

The Kenton Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:

When a situation like this happens, what movement does the plant do to show these overages/shortages ,and how would it be known to be made if not informed via email by warehouse/audit?

Lancer group is approached by a Mass merchandise to sell its products with an assortment of Lancer products. The initial purchase order would be of 0.75 million and the estimated order per annum would be 4 million .The other clauses in the deal are as mentioned

In early 1986. Tim Morrissey was reviewing the disappointing 1985 results of oprations for his company ( see Exhibit 1). The business had been founded in 1938 by Tim’s grandfather as a modermization of an older iron forge company which Tim’s great- great –grandfather had built up over the years since 1902. The company entered the cast iron wood stove business when that market boomed in the early –1970s.By 1977 wood heating stoves was its only product line. The business oprated out of lesed factory and office

shipments x 500$ 70 nr. shipments x 500$ 220 nr. shipments x 500$ number of units per batch total overhead cost overhead cost / unit cost per unit

The chemical is shipped in small plastic drums at a price of $1450 a piece. Demand for the

Using manufacturing cost of $148.12 the product would have to sell for at least $207.

First, we have identified if there is really an insufficiency in the amount of selling prices set by the Sales Department, in reference to Exhibit 1 of the case. We did this through identifying the maximum amount of overhead costs that the company can incur for the three products and comparing it with the total overhead costs. See Table 1 for details.

The Wilkerson Company is in the business of manufacturing valves, pumps, and flow controllers to sell to companies that manufacture water purification equipment. The company started out with a very unique and more efficient way of designing the valves and it was better than any of the other competition that also made valves. And this actually helped them establish a loyal customer base since they were so innovative and had the best quality at the time. They are looking for help since they are having issues with the decline in their company’s profits. The company wants to figure out exactly how and why their profits are as low as they are by reaching out to their controller and manufacturing manager. They want to seek additional help and

W. W. Grainger, Inc. is a leading supplier of maintenance, repair, and operating (MRO) products to businesses and institutions in the United States, Canada, and Mexico with an expanding presence in Japan, India, China and Panama. The company works with more than 3,000 suppliers and runs an extensive Website (http://www.grainger.com) where Grainger offers nearly 900,000 products. The products range from industrial adhesives used in manufacturing, to hand tools, janitorial supplies, lighting equipment, and power tools. When something is needed by one of their 1.8 million customers it is often needed quickly, so quick service and product

* Each buyer is willing to pay $200 for one unit of the Incumbent’s (I) AND $160 for the Entrant’s (E) product