article was written‚ the average age of a Buick buyer was about 72 years of age. While Buick models like the Lucerne‚ the Regal and the Lacrosse were considered to be in the luxury sedan market‚ sales lagged significantly behind the leaders in the category like imports such as Lexus and Acura. Essentially‚ Buick’s aging demographic in the U.S. was not likely to capture new market share. Growing the Buick brand and capturing market share was critical to General Motors (GM) especially as GM had sunk to a
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Group Members: Keshab Parajuli Rohit R Nair Vijay Chowdary Paleti Oktay Ozkan Sandeep S Patel Kartik Chinta 1. The case study suggests that Buick has a series of regional strategies. They were exporting products for long time that were specially designed with the U.S market trends and needs in mind. This contains selling left hand driving cars in the right hand driving countries like India and Japan where their laws allows to operate such cars. When Chinese market share increased and became
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Company Background and Key Factors Waltham Motors was originally a family owned business. The sole product manufactured was electric motors of a single design that were sold to household appliance manufacturers. In late 2003‚ Marco Corporation acquired it as their subdivision. Marco’s management decided to observe Waltham Motors current operating procedures and systems on order to see how well they are functioning. In April 2004‚ Sharon Michaels‚ was transferred from the corporate headquarters
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MacPherson v. Buick Motor Company This case overviews MacPherson who bought a Buick who had a faulty wheel that collapsed‚ causing an accident that injured MacPherson. Buick had not manufactured the wheels but had contracted a manufacturer to make wheels for them. MacPhereson sued Buick for the accident. The lower and higher courts agreed that Buick was responsible for the defect. While it had not manufactured the wheels themselves‚ Buick was responsible for the final product that made it to
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Question 1: Using budget data‚ how many motors would have to be sold for Waltham Motors Division to breakeven? In order to calculate the breakeven point‚ we use the following equation and budget data: Breakeven Sales*Unit Price-Unit Variable Cost= Fixed Costs Breakeven=Fixed CostsUnitary Price-Unitary Variable Cost Breakeven point=260‚000864000/18000-512800/18000=13‚226 units Q2. Using budget data‚ what was the total expected cost per unit if all manufacturing and shipping overhead (both
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Manufactured Electric Motors of single design Motors sold to Household appliance Manufacturers Originally a family business‚ acquired by Marco Corporation in late 2003 A major contract was lost by the company No major changes were made to operating procedures and systems after the acquisition New personnel from Marco were deployed to observe how well the existing procedures functioned 2004 Budget – Based on estimated Sales and Production cost Due to no
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Managerial Accounting Case ‘Waltham Motors Division’ Answer 1: Breakeven point If Waltham Motors Division sells 13‚326 units‚ it will breakeven. But why Waltham incurred net losses when it sold more than 13‚326 units in May? The unfavorable cost variances (see answer 2 and 3) and Waltham’s high operating leverage were major reasons for its financial problems. Waltham’s operating leverage is 3.85 times‚ which indicates that the operating income is very sensitive to changes in sales. Answer
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Q1. Using budget data‚ how many motors would have to be sold for Waltham Motors Division to break even? Answer Q1: Breakeven Fixed costs $260‚000.00 = ---------------------------------- = ---------------------- = 13‚326 units number of units Unit contribution margin $19.51 UCM (Unit Contribution margin) = USP (Unit Selling Price) UVC (Unit Variable Costs) = = $48.00 - $28.49 = $19.51 USP = Sales / Units sold = $864‚000.00/18‚000 =
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1. Using budget data‚ how many motors would have to be sold for Waltham Motors Division to break even? Budgeted CM / Budgeted units sold = $351‚200 / 18‚000 = $19.51 per unit Budgeted FC / 19.51 = 260‚000 / 19.51 = 13‚326 units 2. Using budget data‚ what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) was allocated to planned production
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individuals with no current direct relationship (familial or contractual or otherwise)‚ but eventually become related in some manner. At common law‚ duties were formerly limited to those with whom one was in privity one way or another‚ as exemplified by cases like Winterbottom v. Wright (1842). In the early
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