The Destin Brass Products Co. was established at Destin, FL, in 1984. The company focuses on creating high quality brass content water purification equipments. There are three main products on the market for Destin Brass: Valves, Pumps and Flow controllers. The revenue share for each of the products are 24%, 55%, and 21% respectively.
Destin is facing some issues with its pumps. Due to the competitive pricing on the market, with competitors keep cutting theirs sales price, the contribution margin of pumps went from the estimated 35% down to 22%. The good news for Destin is that its flow controllers are doing really well in the market. Despite the price hike of the product, the demand for flow controllers doesn’t seem to have decreased. This suggests the potential for Destin Brass to continue to increase the price of this product and recover more gross margin.
STANDARD COST VS. ACTIVITY COST BASED
The current standard cost estimates do not accurately cost the products and are misleading in gross margin calculations. This is because of an assumption that all overhead is driven by direct labor only. Thus, overhead is spread across products through a sort of “peanut butter costing” approach. Even though, in reality, there are different pools of overhead activity and different factors that drive them. Activity Based Costing will improve these estimates by
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But in the long run, net income would be very different because costs of the products are very different under the two systems. Under standard costing, the total costs for valves, pumps and flow controllers are $37.56, $63.12 and $56.50 respectively. When applying the ABC system, the total costs for valves, pumps, and flow controllers are $37.74, $48.88 and $100.55 respectively. Destin needs to choose the costing system that most accurately represents their situation in order to make effective decision regarding price adjustments in the
Variable Data Printing in Beavercreek The rolling, wooded hills that characterizes Beavercreek, Ohio, provide an idyllic environment for its residential neighborhoods. Residents here like the spaciousness the city affords them as well as the distance it puts between and the rush of a big city environment. Surprisingly, considering the vibe of its neighborhoods, Beavercreek has numerous manufacturing and research firms within its borders. These employers are here in response to the proximity of Wright-Patterson Air Force Base and engage in specialized advanced technologies such as aerospace and defense technologies.
It is the fifth-largest producer of natural gas and the sixth-largest producer of crude oil in the world. However, there are fewer than 20 companies doing the majority of the production, refining and sales/marketing of oil and gas in Canada (Natural Resources Canada). One of the largest companies is Imperial Oil, headquartered in Calgary, Alberta. Imperial has maintained a strong standing in this volatile market due to an integrated business model, strategic investments in production and steadily increasing production, and a focus on cost management. In this paper, we will analyze the income statement, balance sheet and relevant ratios for Imperial Oil and show that due to this company’s strong fundamentals it is a good (low-risk) long-term
Management has shown their abilities over the years to weather the recent EPA changes and declining wood stove market. While their profit margin for return on assets decreased, they managed to still increase sales enough in their niche market to increase their asset turnover and in the end, increase their return on assets. Even with major deficits in their retained earnings, the company worked through the tough regulations and low cash flow to not only continually grow their business, but turn
On July 29th, 2011, Bobby Dean Nickel was fired from his job at a Staples in Los Angeles, CA. The events leading up to that fateful day in his life have been documented in the court case Nickel vs. Staples Inc. In 2008 Staples Contract and Staples Inc. acquired Corporate Express, the company Mr. Nickel had worked for since August 2002. Corporate Express paid their employees more than Staples did, so after Staples bought Corporate Express, Mr. Nickel’s felt like his managers had it out for the older higher paid employees (him being one of them).
1) Identify aspects of Jim Quintero’s management style according to the four main management theories (Classical, Behavioral, Systems, and Contingency). While most organizations can more than likely identify at least some aspects from each of the four management theories, Quintero’s steel company identifies most with the Behavioral Approach with aspects of the Systems and Contingency Approach blending together in my opinion. Not having much detail on Cool Steel Company’s (CSC) organizational structural it is difficult to determine how much management falls under the Classical Approach, but seeing there are managers (not first-level supervisors) and reviewing Henri Fayol’s general principals, one can assume a structure of sorts. There are several examples of the Behavioral Approach (e.g., trusting, respect, responsibility…) that will be covered in more detail in response to question number two. It is clear that CSC’s success would be in line with the practices described in the cooperative system outlined in the Systems Approach and by virtue of employees being given the ability or responsibility to make decisions; the Contingency Approach can be applied.
Our customers over the years have come to know that service is very important to us and that we will go the extra mile to assist them and to answer any question they may have, to their satisfaction, and if we don’t immediately have the answer, we know someone who does. We at Canwest Tanks stand behind our products and take pride in maintaining quality work whether it is making tanks, installing a pump into a pump chamber, assembling a treatment plant or answering a
The percent recovery of the copper was calculated using the equation, percent recovery = (the mass of the copper recovered after all the chemical reactions/the initial mass of the copper) x 100. The amount of copper that was recovered was 0.32 grams and the initial mass of the copper was 0.46 grams. Using the equation, (0.32 grams/0.46 grams) x 100 equaled 69.56%. The amount of copper recovered was slightly over two-thirds of the initial amount.
The Ok Tedi Copper Mine Define the main forms of pollution and resource depletion and identify the major problems associated with each form. The main type of pollution at the Ok Tedi Copper Mine is the discharging of mining waste into the Ok Tedi River in Papua New Guinea. The pollution problem began in 1984 following the collapse of a tailing dam used by the company that was responsible for mining copper and gold at the site. By 2000, more than 90 million tons of mine waste had been released into the river and destroyed tens of villages, farms, rainforests, and fisheries downstream.
But, the company has been able to control the drop in its bottom line to a large extent as the chart given above clearly shows. This can be attributed to the impressive cost-cutting efforts that are being undertaken by Chesapeake Energy. In fact, I believe that Chesapeake is gradually positioning itself to thrive in a low oil and gas price environment. Let’s see how. Operational improvements are a green flag Chesapeake’s operational highlights include its success in improving completion efficiency as a value differentiator by being able to keep capital costs under control.
1. Case: Crown, Cork and Seal in 1989 (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. Is this an industry in which the average metal company can expect an attractive return over the long run?
What insight is provided by the new profitability analysis? What should Alice, Inc. do to enhance its profitability? In order to increase profitability we would advise Alice, Inc. to focus more on production and realization of Regular model faucets, i.e. spend more direct and indirect expenses on Regular model.
Rocky Mountain(RME) vs. Hardwood Distributors(HWD) · Rocky Mountain’s profit margin is 47% less than Hardwood Distributor’s · 38% worse in earnings per share · Although overall HWD has a higher stock price at 16.35 and RME is only at 9.95, HWD has had a decrease in stock over the course of the year and RME has had a increase Rocky Mountain(RME) vs. Wajax Corporation(WJX) · Wajax Corporation has a high stock price at 22.38(see in appendix I) but falls short in profit margin and EPS · Has the second highest P/E which indicates a desirable stock price and also future success Rocky Mountain(RME) vs. Finning International Inc.(FTT) · Rocky Mountain exceeds Finning International Inc.’s profit margin by 40% · Finning International has the highest P/E ratio which indicates they have future success coming which explains why their stock price is the highest(see appendix I)
There is no doubt that the great communication between Benin and Portuguese encouraged the Benin people to develop their brass casting. However, Benin didn't have enough metal for such development although its people were the inventors of the molding of copper and zinc as well as the brass casting. Thus, the Portuguese supplied Benin with brass ingots shaped as bracelets and they were called manillas. These brass manillas were made and used as currency by countries such as modern Holland where they were sent to Benin and melted by the Benin craftsmen. The quantities of brass manillas sent to Benin were huge.
Based on this case the cost driver is to properly distribute the direct cost among the different divisions. Dr. Julian would like to control her departments costs by having them distributed fairly among the divisions without affecting the hospital’s reimbursement/revenue. Carroll University Hospital is currently using the standard costing unit, which is based on the cost of bed/day for inpatients. Currently the present cost accounting system that is being used at CUH takes the total direct cost of the departments, then allocates the indirect costs and distributes it among the departments evenly regardless of the actual resources being used in those departments, and without considering that there may be some patients in these divisions that may require more resources than others, this method does not seem to recognize the different activities,
flawed. Why? Because it is run by humans. Humans are selfish, inconsiderate, and insatiable. Some of the humans in the industry are so selfish that they will discourage a fair trading system, while other humans' selfishness is the only thing keeping their families alive.