Waltham Motors Division 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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Waltham Motors Case Individual Analysis Measurement I Kofi Opoku October 11‚ 2010 Professor Brett Hunkins Company Background: Waltham Motors Division is a wholly owned subsidiary of Marco Corporation. The company manufactures electric motors of a single design which are usually purchased by household appliance manufacturers. The company was later acquired in 2003 by Marco Corporation. Prior to the acquisition‚ it was a family business. Problem: Sharon Michaels‚ who happened to be appointed
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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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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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Waltham Motors case 1. Using budget data‚ how many motors would have to be sold for Waltham Motors Division to break even? Solution: Given data‚ as per exhibit1for budget‚ is as under. Total sales (TS) =$864‚000 Total Units (TU) = 18‚000 Total variable costs (TVC) = $512‚800 Total Fixed costs (TFC) = $260‚000 Let the number of motors required to be sold to breakeven = Q Then Q = Total Fixed Costs (TFC) / Contribution Margin per unit (CMU) (Equation 1)
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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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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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Starbucks Harvard Business School Starbucks: Delivering Customer Service MKT 690: Marketing Management Mike DiPietro Spring 2015 Nevin Johnson Abstract The following diction is an analysis of the Harvard Business School study on Starbucks coffee‚ titled “Starbucks: Delivering Customer Service.” There are many factors accounted for Starbucks extraordinary success in the 1990s. Though Starbucks offered great coffee and a great experience their customer satisfaction scores declined. There are many
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WorldCom Critical Thinking Case Study Not only did WorldCom’s organizational culture contributed to the accounting breaches‚ in my opinion it was the catalyst to its ultimate demise in July 2002. Richard Thornburgh stated that “WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather‚ there was a broad breakdown of the system of internal controls‚ corporate governance and individual responsibility‚ all of which worked together to create a culture in
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