Bridgeton Case Bridgeton Industries is faced with a difficult decision. Manifolds have been their most profitable product but based off of their recently developed classifications for products it has fallen to the lowest class. The lowest class is then designated to be outsourced. There are many implications for the decision to stop making manifolds. If they eliminate them they are losing almost half of their sales totals ($226‚542-$93‚120= $133‚422). This would then in turn drastically reduce
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expensive gasoline has started a trend in the auto industry for fuel efficiency resulting in ever increasing emission standards. With the resulting loss of domestic market share‚ ACF is facing intense competition from not only other suppliers but other Bridgeton plants as well. The task of remaining cost competitive is daunting as outsourcing seems to be catching on as a way to cut costs. Overhead Burden Rate We have used direct labor as the allocation base to calculate the figures given below. However
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To: Bridgeton Management The ACF plant had cutbacks throughout the 80s as a result of stiff competition caused by foreign competitors entering a market that was dominated by the US auto parts suppliers. As a result of declining market share‚ ACF is not only in competition with other suppliers but also other Bridgeton plants. The gross profit is declining due to increased costs in direct labor and direct material since 1987. Direct materials cost increased due to the high cost of steel in producing
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Bridgeton Industries: Automotive Component & Fabrication Plant DESCRIPTION. The Automotive Component & Fabrication Plant (ACF) was a major supplier of components for the domestic automotive industry‚ the original plant site for Bridgeton Industries. ACF was a long-term business since the early 1900s. The market of ACT’s production was growing and dominated by U.S. automobile manufacturers‚ ACF faced less competition pressure because most competitions from local suppliers and other Bridgeton plants
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Bridgeton Industries: Automotive Component and Fabrication Plant 3. Calculate the expected gross margins as a percentage of selling price on each product based on the 1998 and 1990 model year budgets assuming selling price and material and labor cost do not change from standard. *See Exhibit 1 for calculations To calculate the expected gross margins as a percentage of selling price‚ first we will need to calculate the total overhead (burden) for years 1988 and 1990. For year 1988‚ the total
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Bridgeton Industries: Automotive Component & Fabrication Plant The Automotive Component and Fabrication Plant (ACF) was the original plant site for Bridgeton Industries‚ a major supplier of components for the domestic automotive industry. It manufactured fuel tanks‚ manifolds‚ doors‚ muffler/exhausts and oil pans. All its products were sold to Big Three domestic automobile manufactures. Competition was from local suppliers and other Bridgeton plants. The plant well grew and developed as far as
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University of Toronto Department of Economics ECO 204 2010 - 2011 Sayed Ajaz Hussain Lecture 1 Ajaz Hussain. Department of Economics. University of Toronto (St. George) 1 Today About ECO 204 (Single-Variable) Functions (Single-Variable) Calculus (Single-Variable) Unconstrained Optimization (Single-Variable) Concave and Convex Functions Ajaz Hussain. Department of Economics. University of Toronto (St. George) 2 Instructor: Office Room 212‚ Economics Department 150 St. George Street
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Bridgeton Industries 1. Describe the competitive environment for Bridgeton as well as the cost accounting system currently in use. Bridgeton Industries was a major supplier of components for the US domestic automotive industry. Initially‚ competition in this market was limited‚ and with the growing automobile industry Bridgeton Industries sold most of their production from the Automotive Component & Fabrication(ACF) plant to the Big-Three domestic automobile manufacturers. Their main competition
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into consideration the range of costs affecting Bridgeton industries. Through our analysis it becomes clear that the decision to retain the manifold production line will be more financially beneficial to the company. We will begin with some of the assumptions of our analysis‚ and the conclusions from our various analyses of Bridgeton Industries Costs. Please refer to the attached excel file for detailed analysis of the numbers. We know that Bridgeton uses an absorption costing system which does
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is the director of the facility executes daily operations of the daycare. She holds a degree in early-childhood education. All of these women pride themselves on the impact Ferguson’s has on the community and most importantly the children. In Bridgeton‚ NJ the childcare market is competitive
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