Problem Statement: There is unused capacity due to the flattening of the “bicycle boom” and a poor economy. Baldwin Bicycle Company (BBC) must decide how to best utilize the available capacity and determine if taking Hi-Valu’s proposed contract would be the optimal solution. Quantitative Analysis:
* By accepting the offer, BBC will increase their contribution margin by $442,290 (Exhibit 1). Although there is a loss of contribution margin equal to 3000 units of BBC’s products, the additional contribution margin from Hi-Valu’s proposition more than offsets the loss. * Upon accepting the offer, BBC will need $735,530 per year to invest in additional assets (Exhibit 2). BBC does not currently have enough cash to pay for the first year’s additional capital expenditure; they will need to attempt to obtain a loan or financing. * Exhibit 3 displays the 2011 BBC income statement assuming BBC accepts Hi-Valu’s proposal and the company only suffers a 3000 unit loss. * The debt-to-equity ratio of 1.6 shows that this is a highly leveraged firm. BBC may not be able to generate enough cash to cover its debt obligations (Exhibit 4). Thus, the company will have search for creditors willing to invest; this may be difficult as creditors may be uncomfortable with the fairly high debt-to-equity ratio. * The inventory turnover ratio for BBC is 2.92; inventory is expected to sell less than 3 times a year. Qualitative Analysis:
* BBC must investigate to verify that they have the manufacturing capabilities to handle the uncertain demand from a large chain store like Hi-Valu. Hi-Value has had great difficulty predicting sales both by store and by month; BBC must be prepared * Assuming workers are efficient at 75% capacity, more employees will be needed to produce the Hi-Valu order. Training expenses and additional wages should be considered. * The contract does not align with BBC’s current practice and strategy. Although BBC’s bikes are not “top of the line”,...
1. Identify all the accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company’s 1984 reported profits.
The first change that unfairly advantage to the corporation was the depreciation method, which was changed from accelerated to straight line depreciation (in a retroactive form, which affects the past for all the assets). The cumulative effect was a total of increase in profit of 11 million dollars or 93 cents per share. In this way, the company didn’t actually perform better (as shown in the income statement).
The second change that reflected better numbers in their statements was the inventories. They changed the way they kept its value (they used FIFO for domestic materials, while using LIFO for imported material). Then, they made a "LIFO liquidation", that according to a small research we made, it's a managerial move done to lower the COGS, thus, increasing the profit margin out of nowhere. The net effect of this change was a 2.4 million increase in profit.
Another important change was the transactions made with Kobe Steel, the supplier of machinery who the corporation was the exclusive distributor in the US market. In the past, they used to record only the gross profit on every sale made from any Kobe equipment (this is, sell price minus paid price to Kobe). Now, to “better reflect”...
Problem Statement: The problem addressed in this casestudy is the question of what
marketing mix to use to increase Reliance Baking Soda’s (RBS) profit by 10% in 2008.
The marketing mix solution must evaluate the effectiveness of consumer and trade
promotions and also address the complex interaction between them.
To help evaluate the value creating opportunities for RBS the
following analysis were conducted: Strength, Weakness, Opportunity, and Threats
(SWOT – Exhibit 1); and Porter’s 5 force analysis (Exhibit 2).
As seen in the SWOT analysis, the biggest asset for RBS is its loyal customer base and
historically strong brand awareness leading to a strong market share (70% for RBS).
This translates to a high supplier power for Reliance. Advertising baking soda as an allpurpose cleaner to its established customer base is a good avenue for Regnante to achieve
the 10% profit goal. For a historically cheap product, a large customer base with frequent
purchases to allow for multiple usages is extremely important to help the product’s entry
into different areas of the house.
RBS Case Analysis continued
However with low barriers of entry for baking soda, threat of competition from lower
priced private labels, and moderate to high buyer power due to excessive reliance on
trade promotions, Reliance should also focus on a gradual and incremental change on this...
MANAGERIAL ACCOUNTING FOR DECISION MAKING
AMIS 823 – Spring 2008
INSTRUCTOR: Prakash R. Mulchandani
OFFICE HOURS: M/W 3:30-4:30pm, and by appointment
OFFICE: 432 Fisher Hall
E-MAIL: [email protected]
TELEPHONE: (614) 247-6267
FAX: (614) 292-2118
This course focuses on the strategic nature of management accounting and emphasizes the critical role that information plays in decision-making, strategy execution, and overall enhancement of a firm’s value. Primarily taught through casestudies, this course will utilize and build upon the concepts studied in prior Management Accounting courses, and allow the students an opportunity to see how these concepts fit together. Selected readings from textbooks and business periodicals will be used to blend in appropriate theory for newer subjects that may be the focus of some casestudies.
The world of business continues to change dramatically. As a result, the role of managerial accounting is very different than it was even a decade ago. Today, managerial accountants serve as internal business consultants, working side-by-side in cross-functional teams with managers from all areas of the organization as they make decisions towards defining and implementing strategy. To complete their knowledge of managerial accounting, students must understand how managers are likely to use and react to information provided by...
PAN EUROPA FOODS S.A
C. Opitz and R.F. Bruner
Table of Contents
The report is to provide the shareholders with the firm’s capital budget for the new year, 1993. 11 projects will be examined and discussed. Projects will be chosen based on the most needed and urgent projects and based on budget. Exhibit3 of the case analysis provides the free cash flow and analysis of the proposed projects.
The problem with Pan Europa Foods, according to the case, is that the company is beginning to lose market share due to static sale, which is due to low population growth in Northern Europe. The company is also losing money due to market saturation in some areas of Europe. The board of directors are now considering 11 new projects with a budget of ECU80 million. Funds need to be allocated amongst a range of compelling projects; projects proposed include new product introduction, acquisition, market expansions, efficiency, improvements, preventive maintenance, safety and pollution control. The problem that the company is having is beginning to affect the company’s stock which is now priced below the average multiples of peer companies and the average multiple of all companies on the exchanges...
CaseStudies in Middle Adulthood
By Gail Hall
Professor Deborah White
September 16, 2014
As a part of the human service professional reviewing casestudies will be an important part of the job. Not only should we keep notes on every client but we could use them as a reference for future clients. The casestudies could become useful if past and future clients have similar cases. In this casestudy we will examine family, social, and intimate relationships. Identify any role changes that may have occurred, and immediate and future effects of healthy and unhealthy habits demonstrated in this casestudy.
My casestudy is on Jackson the 25-year-old, unemployed, single adult male, with a substance and alcohol abuse problem. After graduating high school Jackson started attending college the following fall to earn a degree in chemistry. In the course of his freshman year Jackson suffered a major head injury in a car accident. As a result he sustained loss of his cognitive and analytical functioning skills, due to damage to his Cerebrum. Jackson begin drinking alcohol and abusing the painkillers giving to him by Doctors following the accident. As a result Jackson is now using prescription painkillers and mixing with alcohol to relieve...
...business groups-wireless, fixed line, and information and communications technology-PLDT offers the largest and most diversified range of telecommunications services across The Philippines’ most extensive fibber optic backbone and wireless, fixed line and satellite networks. PLDT is listed on the Philippines Stock Exchange (PSE: TEL) and its American Depositary Shares are listed on the New York Stock Exchange (NYSE:PHI) and the Pacific Exchange. PLDT has one of the largest market capitalizations among the Philippine listed companies. The fixed line business provides local calls, national and international long distance services, which operates around 2.1 million access lines. The wireless...Food Procurement
INTRODUCTION Background of the Study Mang Inasal Chicken BBQ is the Philippine's fastest growing barbeque fast food chain, serving chicken, pork barbeque and other Filipino favorites, was first established on December 12, 2003 in Iloilo City. Currently, there were 445 branches nationwide and...
Premium3653 Words12 Pages
How can Mang Inasal sustain its success? Your column on Mang Inasal?s success secret is still the continuing topic of our group?s conversations. We?re a foursome of Asian Institute of Management (AIM) Master in Entrepreneurship (ME) graduates and you taught our batch. There?s one question raised...
Premium1094 Words3 Pages
Apart from the usual food presentations of multinational food company copycats, Mang...
A DAY IN THE LIFE
1. How effectively do you think Rachel spent her day?
2. What does the case tell you ask what it is like to be a project manager?
Project is a complex, non-routine, one time effort that is limited by time, budget, resources and performance specifications and it’s implemented to meet the customer requirements:
This case shows a daily working life of Rachel, the project manager of large information systems project; the case mainly discussed the way a project manager allocates her time to spent one day in her life. A day in the life also shows a glimpse of what it is like to be a project manager. It also underscores that being a project manager is more social than technical and that project manager spend the majority of their time interacting with various people who impact on a project.
The effectiveness of Rachel spent her day project is complex, non-routine, one time effort limited by time,budget,resources and performance specifications designed to meet customer needs. Considering the casestudy, Rachel allocates her time significantly on activities not done respectively before that in my point of view can be applied as project activities.
Activities such as going over project reports and preparing for the weekly status meeting, going over problems with her boss, participating in a conference call and responding to the issues...
April 16, 2012
Title of Paper
Carl Robins, began working for ABC, Incorporated, about six months ago as a campus recruiter. This is considered a tough job, which involves many responsible. Carl had only been with the company for six months, but expressed he was ready to begin recruiting people. In early April, Carl recruited his first fifteen people. Those people would be working for Monica Carroll who was the Operations Supervisor. Monica informed Carl that she would need them to be done with orientation and working by July, first. Carl planed for all fifteen people to begin orientation on June fifteenth, this would give Carl fifteen days to finish up everything that was not complete. This casestudy will discuss what Carl Robins was responsible for, it will examine the key problems, and analysis what caused these problems, and provide different possible solutions to the problems.
The facts in this casestudy, some of which have already been discussed previously are as followed: Carl had only been working for ABC, Incorporated, for six months before making the decision that he was ready to take on all the responsibilities of a recruiter. Carl recruited his first fifteen new hire employees in early April, and informed all fifteen people that orientation was scheduled for June fifteenth. Carl...