Instead of meeting Retailer's demand from 2 Warehouses, if you decide to serve from only one centralized Warehouse, the level of Safety Stock------- O a. Comes down to zero O b. Can be reduced O. C. To be maintained as the sum of 2 Safety Stocks O d. Needs to be increased

Instead of meeting Retailer's demand from 2 Warehouses, if you decide to serve from only one centralized Warehouse, the level of Safety Stock------- O a. Comes down to zero O b. Can be reduced O. C. To be maintained as the sum of 2 Safety Stocks O d. Needs to be increased

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EB: Determine the operating income for Vinnies Vinyls West score, assuming the warehouse allocation is...

See similar textbooks

Similar questions

Refer to the information for Petoskey Company from Exercise 8-44. Assume that 20% of theAlanson customers choose to buy from Petoskey because it offers a full range of products, including Conway. If Conway were no longer available from Petoskey, these customers would goelsewhere to purchase Alanson.Required:CONCEPTUAL CONNECTION Estimate the impact on profit that would result from droppingConway. Explain why Petoskey should keep or drop Conway
Prepare a schedule showing the change in revenues and expenses and the impact on the company’s overall net operating income that would result if the North Store were closed. Assuming that the store space can’t be subleased, what recommendation would you make to the management of Superior Markets, Inc.? Disregard requirement 2. Assume that if the North Store were closed, at least one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. The East Store has enough capacity to handle the increased sales. You may assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in that store. What effect would these factors have on your recommendation concerning the North Store? Show all computations to support your answer.
Determine the operating income for Vinnies Vinyls West score, assuming the warehouse allocation is reduced to 10% of sales for the warehouse and the difference will be charged to the West store. Management has determined that the warehouse takes fewer corporate resources and the allocation to the West store was lower than it should have been.
Based on your research of the market in the previous exercises, you have determined the market price for the items your department purchase is 15% below what you are being charged by department A of Marleys Manufacturing. How would you view this as a manager? What steps could you take to solve this discrepancy? What alternatives would you consider, assuming you had control over purchasing decisions?
A company is providing its product to the consumer through the wholesalers. The managing director of the company thinks that if the company starts selling through retailers or to the consumers directly, it can increase its sales, charge higher prices and make more profit. On the basis of the following information and consider variable cost is rial 2.50 per unit and fixed cost is rial 50000. (a) Advise the managing director whether the company should change its channel of distribution or not (with calculation and Justification). (b) Provide suggestions and recommendations on the basis of analysis.
To help in the analysis, Kaylin gathered the following data for LLHC for 20X1: Tons sold: 10 Average cartons per shipment: 2 Average shipments per ton: 7 1) Comment on Ryan’s proposal to drop some high-volume products and place more emphasis on low-volume products. Discuss the role of the accounting system in supporting this type of decision-making.
1.Forecasts using Point-of-Sales (POS) systems are based on A.different deterministic factors that affect market demandB. developments and findings in markets that are relatively similar C.the use of store scanners in weekly and biweekly store audits D.computer analysis of past performance data to predict future market demand 2.For retailers and channel members, an important method of forecasting sales is A.time series models B.econometric models C.sales force composite estimates D.point-of-sales (POS) based projections 3. In primary research, once data has been collected and the questionnaire has been coded, the next step for the researcher is to A.analyze the data B.interpret the data results C.make recommendations from the findings D.input the data into a computer program 4.Among the sampling decisions that must be made, researchers must select the _____, which is the group of individuals who will be included in the survey. A.sample size…
A supermarket manager has asked you to help assess different shelf locations. To identify which location has the best sales H0: average sales FRONT= average sales MIDDLE = average sales REAR H1: at least one of the average sales differs Your analysis is shown in the following SPSS output: ANOVA Sales Sum of Squares df Mean Square F Sig. Between Groups 48.444 2 24.222 14.105 .000 Within Groups 25.760 15 1.717 Total 74.204 17 Multiple Comparisons Dependent Variable: sales in $1000 Bonferroni (I) shelf space location 1=front; 2=middle; 3= rear (J) shelf space location 1=front; 2=middle; 3= rear Mean Difference (I-J) Std. Error Sig. 95% Confidence Interval Lower Bound Upper Bound 1 2 4000.000* 756.601 .000 1961.92 6038.08 3 2333.333* 756.601 .023 295.25 4371.42 2 1 -4000.000* 756.601 .000 -6038.08 -1961.92 3 -1666.667…
The manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis). warehouse west store sales $18,920 $43,860 cost of goods sold 9,082 21,053 gross profit $9,838 $22,807 selling expenses 860 2,752 wages expense 4,730 15,351 costs allocated from corporate 2,838 4,386 Total expenses $8,428 $22,489 operating income/(loss) $ ? ? Operating Income/(loss) % ? ?
A department store has overhead costs of $250; 000 and a linear total cost function. The controller has set thestore’s margin policy using the example of a $140 markup on an item retailing for $500. The controller has alsoestimated that other variable costs on the same retail item selling for $500 are $15.i. Find the revenue, cost, and profit functions using s for sale volume.ii. Find the break-even dollar volume of sales.iii. Draw the break-even chart.iv. What will the net profit be if sales are $3; 000; 000? Need the solution for only (iv)
Assume you are the warehouse manager for Vinnies Vinyls, a multi-location business specializing in vinyl records. Vinniess operates under a cost-based transfer structure and the warehouse supplies all stores with the records. The stores can purchase records only from the warehouse, and the warehouse can only sell to Vinnies stores. The manager of the West store has some concerns relating to the stores financial performance and has asked for your help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. (Hint: it may be helpful to perform a vertical analysis.)
The following information is from Good Read Books. Good Read is a regional book store with three regional stores. The May income statement for all stores is shown. A. Comment on the operating income results for each store. B. Now assume the costs allocated from corporate is an uncontrollable cost for each store. How does this change your assessment of each store?