Case Study - 4. Superior Manufacturing Company Description: The Superior Manufacturing Company received a net loss income statement for a good business year (2004). The Company has only 3 products and lots of competitors with similar products. The manager thinks the product 103 should be dropped for its high cost which could not be cut down‚ and the product 102 has an increasing demand. Also‚ the managers want to make a price reduction. However‚ they find that the costs are too high to support the
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You are a manager at Winsome Manufacturing Company‚ a company that produces plastic storage containers and sells them to the home consumer through home sales events. At the company’s quarterly meeting‚ the head of marketing described a new product to be introduced in the first quarter of the next fiscal year‚ approximately nine months from now. The product will be a room-sized plastic storage unit suitable to the outside of the home; it is similar to a competitor’s product but will have significantly
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Abstract Baxter Manufacturing Company (BMC) is a family founded company. Started by Walter R. Baxter in 1978‚ the 140‚000-square foot manufacturing facility is headquartered in the Midwest in the United States. Walter Baxter’s children work for BMC‚ Kyle Baxter is the President and his sister Sue Barkly is Vice President of customer relations. BMC is recognized as a world class supplier of tools‚ dies and deep-drawn stamping; serving customers such as: General Motors‚ Ford‚ Whirlpool‚ and
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| Budgets in manufacturing companies Text adapted by Hugues Boisvert‚ from chapter 11 of the book La comptabilité de management‚ prise de decision et contrôle‚ 3e edition‚ ERPI‚ 2004‚ p. 278-292‚ written by Hugues BOISVERT‚ Claude laurin and Alexander mersereau (HEC Montreal). Table of contents 1. Budgets 2. Budgetary styles 3. The budget process in a manufacturing company 4. Comprehensive example of a budgetary process of a manufacturing company 5. Budgetary management
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system. | | | Both produce almost all of their respective informational reports on a routine monthly basis. | | | Both provide relevant and useful information to management. | 2 points Question 4 Carlson Manufacturing is a producer of plastic bottles for bottled water companies. In July of this year‚ the plant manager switched to a new supplier of raw materials. The materials have a lower cost‚ and because of their
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Malard Manufacturing Company Malard Manufacturing Company produces control valves that regulate flows through natural gas pipelines. Mallard has approximately 1‚400 employees and has successfully produced a standard line of control valves that are price competitive in the industry. However‚ whenever the production of a new control valve is required‚ problems arise. Developments in electronics‚ metallurgy‚ and flow control theory require the introduction of new products every year or two. These
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SOLID AGRICULTURAL COMPANY I. Summary Solid agricultural company is a family owned company that has been in existence since 1960. It operates piggery farms in Antipolo‚ Rizal and Meycauayan‚ Bulacan. It has grown conservatively due to limited family resources. The company was previously primarily managed by Mr. Henry Koh. But in the recent years‚ his son Mr. Manuel Koh helped in the management of the company. Mr. Manuel Koh saw an opportunity for expansion. The expansion is projected to increase
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Answer#1 First Six-Months Price Variance Efficiency Variance Sales-Volumn Variance AQ*AP AQ*SP SQ*SP Static Q*SP Raw Materials 590000*3.867=2281000 79000F 590000*4=2360000 104000U 188000*3*4=2256000 144000F 200000*3*4=2400000 Direct Labor 400000*11=4400000 $- 400000*11=4400000 264000U 188000*2*11=4136000 264000F 200000*2*11=4400000 Spending Variance Efficiency Variance Never a Variance Actual Input
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During the second half of the year‚ the company increased the price of the goods. As a result the company suffered a decrease in sales but its total revenue increased due to the increasing prices. This could be explained by the fact that the company did not maximize its profit during the first half of the year‚ the price and sales of the company is not at equilibrium and products are being sold at a price lower than equilibrium. At the second of the year‚ due to an increase in price the sales volume
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Depreciation 3658 3658 0 Interest 539 539 539 Total Fixed Expenses 15988 7195 -4933 Net Operating Loss -2262 -7195 -4933 According to above‚ Superior will suffer operating more loss of $4‚933‚000 if it drop project 103.Therefore‚ the company should keep Product 103. Q.2 Should Superior lowers as January 1‚ 2005 its price of product 101? To what price？ Variable Cost (VC) Fixed Cost (FC) Compensation Insurance 0.39 Rent 0.88 Direct Labour 6.06 Property Taxes 0.29 Materials 3
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