The problem that the company is losing their loyal customers and their product is getting returned is either due to the quality of their product or due to their dysfunctional delivery channels. With the increase in the competition in the market, customers have more choice of buying the same product with better quality and getting it delivered in a timely manner. From the case, we can assume timely delivery and quality product are two of the most important criteria for their customers. Causal Togs has been struggling on both of these fronts which have allowed their competition to swoop in and has resulted in the company to lose its loyal customers.
Cost of upgrading,tool maintenance - $2M loss. On going performance lag on company - $4.64M
How does Wilkerson’s existing cost system operate? Develop a diagram to show how costs flow from factory expense accounts to products.
ESWC did not demonstrate proper separation of duties between the individual that complies and submits the financial data to CDLE. These two functions should not be performed by the same individual. Internal controls exist so safeguards are in place to protect grant assets, if one individual is responsible that potentially could negate the safeguards set-up to guard against loss from unauthorized use or disposition.
General office funds are inclusive of things such as staplers, pencil sharpeners, copy paper, and the like. Similarly, premiums are the items provided to students; these include: t-shirts, drawstring bags, etc. The remaining $1,386 allotted to supplies, is made up of postal supplies ($74), telecom services ($75), inbound freight ($27), charge card purchases ($338), stationary ($58), laboratory supplies ($414), personal care products ($13), recreational supplies ($16), network components ($40), office incidentals and improvements ($118 and $159), apparel ($45), and food service ($10). While some supply requirements are easily understood, others are worthy of explanations. When referring to telecom services, the budget is allocated for the expenses related to communications. Likewise, network components refer to the necessary cords and technological equipment needed to ensure internet connection. Laboratory supplies is an example of specified program day supplies. Supplies deemed necessary for specific programming days fall into this category. As previously mentioned, the budget is representative of the current number of students enrolled in the program; therefore, when the enrollment numbers increase, the allocation of money for supplies will possibly
The operating expense of all the machines, raw material costs and overheads and the Labor costs and overheads are mentioned in the EXHIBIT 2. The expenses for all the assembly lines are given separately except for the case of Interior Assembly Machine assembly line, which also includes the cost of labor that is being used to operate on these machines.
Analysis of the Pro Forma statement indicates that revenue will increase from the current level of $2,062,284 to $3,0193,89 by the end of the projected year five. After adjusting appropriately, for increased cost to produce sales and taxes on the increased income, we will increase from the present level of $309,665 to $453,281 by the end of year five. The Current Assets accounts of Cash, Accounts Receivable, Inventory, and Prepaid Assets are also projected to increase. Cash is projected to increase from the current amount of $10,525 to $18,883 by the end of the projected year five. Accounts Receivable will increase from the current amount of $27,000 to $46,646 by the end of year five. As a result of increased sales the extra cash will be used supplemented by loans to purchase new equipment and fixed
Sheet protectors for the educational material will cost $5.00 for a count of 50 which we have requested two boxes with a final price of $10.00. We have requested to supply each participant with folders so that they can keep their educational material in an orderly fashion. The cost of the folders is $10.00 a box which contains 25 folders. We have requested four boxes which will give us a price of $40.00. We have also budgeted for four staplers and four boxes of staples. The stapler will cost us $7.00 per unit and $7.00 per box of staples. The final price of the staplers and staples will be $56.00. Next we have budgeted eight laser printer toners. The cost of the laser printer toner is $60. The toner will allow us to print over 1,100 pages of information. The cost of eight toner cartilages will be $480.00 per year. Next we would like to purchase pens for our participants to complete surveys and to jot down notes during our focus group meetings. Our budget for the pens, for six boxes will be $30.00. In addition, we would like to employee a shredding service for paperwork that is required to be shredded. Our price for a shredding service will be $35 a month, which will give us a total of $420 a year. Finally, our program will need to have access to the internet and a phone service. The
American Connector Corporation (ACC) is a supplier of electrical connectors based out of Sunnyvale, California since 1961. ACC relied on its ability to produce high quality customized products for its users. In USA, 1991 had seen sales fall by 3.9% over the last year and the industry was seeing a decline since 1987. ACC was struggling with increasing costs and deteriorating quality In line with the industry trends. Its
(a) Perform an industry analysis of the U.S metal can industry in 1989.Define the industry. Analyze the effect of buyer and supplier power, competition, barriers to entry, complements and substitute for the industry. Summarize your assessment of industry’s attractiveness.
The increase in direct labor expense is reflective of a 13.4% increase in direct and indirect labor headcount and higher related wage expense of $26.2k. July 2015 labor cost associated with product sold ended at 27.4% of sales up from 24.6% for July 2014.OSP costs were $20k representing 3.5% of sales in July 2015 relatively unchanged from July 2014. Year over year, OSP decreased from $324.8k representing 4.8% of sales in FY2014 to $294k representing 4.2% of sales in FY2015. The decrease in OSP is primarily due to product mix and sales of products with lower cost or no outside processing. Temporary headcount at July 31, 2015 is up 3 FTEs and $8k from July 2014. Expendable tooling for the current month is $15.4k or 2.7% of sales down 2.2% from July 2014. Year over year expendable tooling is down from $231.9k or 3.5% of sales in FY2014 to $210.4k or 3.0% of sales in
The production department is paid on a piece rate system, for every unit the send to the next station they are compensated. The production staff that sort and store raw materials are paid per box is unpacked and those who pack finished goods are paid per box packed ready for shipment. The piece rate compensation plan motivates the employees to produce more nuts and bolts. The piece rate system also has unintended
The model that we selected for our practice run and actual simulation was Low lifetime cost. We decided to implement this strategy to improve quality and customer satisfaction. Delta Signal Corporation was initially an innovative supplier that developed a wide range of products, however, these products lacked quality and customer satisfaction. Through our simulation, we hoped to combat these issues by deliberately focusing on high quality and achieving customer satisfaction while still providing low-cost products.
Student Answer: Kerrie Peterson is a general manager of a large business division in a company that deals with financial services. She has a record of accomplishment of growing the business expressible but she now has the challenge of leading an unpopular change, a cost reduction initiative. Kerrie knew the cost reduction effort was going to be a test of her leadership ability (Lester & Parnell, 2006) In the first part of Kerrie’s case, she decides to use a team-player approach in development and selection of strategies to hit a 15 percent cost reduction goal (Lester & Parnell, 2006). The percentage was set for her business unit. She assembles an effective team but she is aware of the challenge that her team will experience. She is also aware
Break-even analysis is a powerful management tool. A break-even analysis is a process that use to the determine number of unit that have to sell to recover the capital. In accounting it specifically said that the point where the total cost and total revenue are equal. There will be no gain or loss. It is called as the break-even point. It is identifying as the point that payback the initial. Break-even analysis also use in planning, decision making and controlling expenses. It is also can be used in determining wheatear to buy or lease, expanding to new area, building new plan and many other business application. It also can show impact on business of changing price strategy.